Hyderabad: Residential Sale Property Demand surges in Q3 2014
The Hyderabad realty market which was going through a phase of instability for the past few years has shown signs of revival following the bifurcation of the State in June 2014. Based on data compiled by CommonFloor, the proportion of demand for Residential Sale (mostly apartments) property listed from Q4 2013 to Q3 2014 has been used as a basis for this analysis.
Source: CommonFloor.com
Figure 1 shows the change in proportion of demand for Residential Sale property between Q1 to Q3 2014 compared to Q4 2013. The proportion of demand in Q4 2013 is taken as the ‘base’ and the change in demand between Q1 2014 and Q3 2014 is analysed in relation to the ‘base’ values.
Accordingly, it can be seen that the proportion of demand for Residential Sale property in Hyderabad increased slightly in Q1 2014 compared to the ‘base’. Subsequently, there was a steep decline in demand for Sale property in Q2 2014. This can be attributed to the impasse that was prevailing in the city following the bifurcation of the State and an uncertainty that was felt in realty circles. However, there was a remarkable revival in demand in Q3 2014. This can be attributed to the formation of Telangana and the establishment of the new government leading to a revival in the sector.
Source: CommonFloor.com
As per Figure 2, it can be seen that the proportion of Demand for Sale (mostly apartments) property in Hyderabad initially dipped considerably between Q4 2013 and Q2 2014. However, there was a remarkable turn-around in demand for Sale property in Q3 2014.
Analysis of findings
Based on the findings, we can arrive at certain substantial conclusions. The drop in demand for Sale (primarily apartments) property between Q4 2013 and Q2 2014 can be attributed to Hyderabad being in the throes of political uncertainty following the Telangana imbroglio. The bifurcation of the State in June resulted in a fair bit of uncertainty in Q2 2014 with regards to the stability of the realty sector of the city. However, the installation of the newly elected government brought back confidence in investors who were undecided about investing in apartment projects. This explains the increase in demand for Sale property in Q3 2014.
