Property sales pick up in Hyderabad

But pace of clearances remains slow

After years of sluggish activity, the property market in Hyderabad is picking up according to two latest studies by real estate consultancy firms who operate throughout the country. One report by Knight Frank suggests that sale of residential units started picking up in the latter half of 2014. Meanwhile another report by Prop Index suggests that the demand for residential houses has been increasing steadily from 21 per cent in April-June 2014 quarter, 32 per cent between July and September and 36 per cent in the October-December 2014 quarter.

Both the reports suggest that the city’s property market, which wobbled due to political instability in recent years, is likely to show a revival. The real estate scenario had witnessed a drastic change from the second half of 2014. But the market remained sluggish in 2013 with the absorption of only 16,500 residential units and witnessed a slight drop in residential sales volume compared to 2012.

In the first half of 2014, the city saw a further plunge of over 27 per cent where only 7,300 residential units were sold. However, in the second half of 2014, property sales and demand picked up due to the festival season, according to the Knight Frank Report. Real estate professionals said that during the struggle for the formation of Telangana, Hyderabad’s realty market slowed down and that the demand rate had thinned out with the delay of new residential projects.

After announcement of the new State, stability gained ground and started investing. Builders say that the sun is rising again on Hyderabad as the property market has seen a marked rise in the number of buyers’ inquiries in 2014. “Increase in number of enquiries is a positive sign for real estate development. Several development measures proposed by the State government for infrastructure and industrial development such as Metro Rail, have boosted real estate sales in the past few months” feels Anand, a real estate consultant.

However not every real estate businessman is happy with the current scenario. “Nothing much has improved in the market. Due to the formation of new State, permissions for new projects are getting delayed as the State needs new officers. 2014 has been the year as the year of adjustments and the market is expected to pick up for residential and commercial activities at a frenetic pace in the second quarter of 2015,” noted Santosh, another builder. To pick up property sales, many developers are adopting the various methods which lure the buyers’ interest.