Hyderabad: The chief minister of Telangana, A Revanth Reddy on Thursday, July 4 remarked that in the last 6 months, Hyderabad witnessed a boom in the real estate market, crediting the Congress-led state government for the upward curve.
“A boom in #Hyderabad Real estate market in the past 6 months, 40% surge in demand in both domestic & global office leasing space, driving growth. Benefits of a silently performing, efficient government with only one focus – delivery of results. We will reimagine and build Hyderabad for the next orbit in the next several years…Creating opportunities for everyone in this journey,” he said on X while citing a media report stating that Hyderabad recorded a 40 percent surge in office space leasing.
Real estate in Hyderabad sees massive dip in housing sales
According to the latest report by Cushman & Wakefield, a commercial real estate services firm, the projected gross leasing volume (GLV) for Hyderabad in the first half of 2024 (H1 2024) is expected to reach an impressive 5 million square feet (msf).
This represents a significant increase of nearly 40% compared to the 3.6 msf recorded in H1 2023.
Hyderabad sees jump in residential prices
According to a report by real estate services company ANAROCK, on a yearly basis, Hyderabad recorded a 39 percent jump in average residential prices. It is the highest among the top seven cities, which recorded an average price rise of between 13 and 39 percent.
The increase in prices in the top cities ranged from 4 to 10 per cent in the second quarter of 2024 compared to the first quarter of the year.
Despite the price increase, sales declined from 19,660 units in Q1 2024 to 15,085 units in Q2 2024.
Dip in house rent growth in Hyderabad
In the Hyderabad rental real estate market a dip in house rent growth in the second quarter of 2024 has been witnessed.
As per a report by ANAROCK, HITECH City and Gachibowli saw average rents rise by 3 percent each in Q2 2024 compared to the preceding quarter. In Q1 2024, the quarterly average rent hike in both these markets was 5 percent.
The dip in growth can be attributed to a rise in supply. With more new supply entering the markets, the highly speculative residential rental spike is coming to a halt.
The report states that Hyderabad is slated to see 34,770 units completed by the end of 2024, whereas, in 2023, 20,500 units were completed.
