HYDERABAD: Jones Lang LaSalle Incorporated (JLL), in a roadmap report of Hyderabad’s real estate industry through the Covid-19 pandemic, called the city one of the most resilient markets across the globe, even comparing it to rising international real estate markets such as Nairobi, New Delhi, Bengaluru, Bucharest and Schengen.
The trend reflected in the fact that low vacancy coupled with strong pre-committed space left occupiers with limited options to expand or relocate. Top developers in the city did not agree to any rental discounts or deferment of rents when occupiers renegotiated. However, a few top developers agreed on a discount of Common Area Maintenance (CAM) charges, while many are still reviewing the request of the occupiers
With the leading demand for office spaces and the highest amount of new launches that were sold in Q1, 2 and 3, the JLL report places Hyderabad at one of the leading real estate markets in the country.
As the city opened up in early May 2020, construction activity resumed in a few projects and a few office projects started operations by June 2020. Total supply of 3.7 million sq ft was added in H1 2020 and the city’s stock reached 66.6 million sq ft. Demand dynamics also remained strong as a few key office leases with large areas were closed after the lockdown was relaxed in May 2020. The city reported an absorption of 2.1 million sq ft in H1 2020 which dropped the city’s vacancy rate to 9.2 %.
On the residential front, low unsold inventory in the city coupled with good sales allowed top developers to hold base prices of the residential units intact. Although Hyderabad is battling with a growing number of Covid-19 cases and the threat of virus spreading looms large, construction has been resumed in many sites and home buyers have started physical site visits.
Many developers are exploring new technology options to ease out the home buying process in Hyderabad. Many may soon adopt technology for virtual site visits and payment platforms to attract more buyers.
City a leading real estate market in country
Low vacancy coupled with strong pre-committed space left occupiers with limited options to expand or relocate.
Top developers in the city did not agree to any rental discounts or deferment of rents when occupiers renegotiated. Also, the JLL report places Hyderabad at one of the leading real estate markets in the country. As the city opened up in early May, construction activity resumed and a few office projects started operations by June