The Telangana government’s thrust on revamping industrial policy has turned around the negative sentiment especially after the bifurcation of the state, into a positive perception, notes the latest edition of PropIndex, the quarterly India Apartment Index report for April-June 2015. Hyderabad has the right infrastructure, radial connectivity and metro which will contribute to the turnaround in the real estate development.
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Residential property launches in and around the city were moderate to stable during the second quarter. New launches mostly happened in the western part of the city and remained slow across the rest of the areas. The residential property market has been slowly picking up despite the dip in home loan lending rates by 0.75 per cent, flexible lending norms by various HFCs and banks and stable prices. The city has recorded a rise of 2 per cent in values quarter-on-quarter, as per an industry survey.
On the supply side, apartments constituted a major portion followed by villas and plotted development projects during the second quarter. The preferred categories continue to revolve around budget apartments lying at convenient distance from the IT corridors of Gachibowli and Hiteck City. The mismatch between demand and supply has dampened the residential market in areas like Gachibowli.
On the commercial front, there has been a spurt in the quantum of office space absorption with the IT corridor dominating the transaction activity. While rentals witnessed appreciation in the IT and the extended IT corridor, healthy occupier enquiries in select IT SEZ developments led to a marginal increase.
Hyderabad also saw an increase in new commercial project completions and along with Mumbai accounted for a share of nearly 39 per cent of the total supply released during the second quarter of the year.