HYDERABAD: Despite the pandemic playing havoc through 2021, Hyderabad’s residential and office asset classes showed resilience with western parts of the city driving the realty growth. Knight Frank India, in its latest report ‘India Real Estate: H2 2021’, said a total of 19,024 units were launched in H2 2021 which translates to a 126 per cent growth YoY. Around 64 per cent of the total home units were launched in the western part of Hyderabad.
Locations such as Kokapet, Peerancheru, Gopanapalle and Nalagandla saw the most development activity.
West Hyderabad also accounted for a similarly high 60 per cent of the total sales during H2 2021 with home buyers preferring to be close to the office hubs of HiTec City, Gachibowli and Nanakramguda in the commercial core of the city.
Hyderabad registered a sales growth of 142 per cent to 24,312 units in 2021. The year 2021 was also the best year since 2011 in terms of annual volume sales. While the pandemic influenced the requirement for spacious residential accommodation, developers capitalised on this shift in sentiment by launching 35,736 units during the year which translated to a 179 per cent growth YoY.
In terms of office market performance, 2021 has been a year of stabilisation for the Hyderabad office market with transaction volumes matching the previous year’s annual total at 6 mn sq ft. New office completions were reported to be 4.6 mn sq ft during the same period. The manufacturing sector was the mainstay of the market during H2 2021 accounting for 35 percent of the space transacted during the period.
The report said that 12,344 housing units were sold in Hyderabad in the second half of the year 2021. The growth was recorded at 135 percent YoY which was reported to be the highest in the country. With a share of 48 percent of overall home sales, the mid-segment of Rs 5 to Rs 10 million constituted the bulk of home sales in H2 2021.
Samson Arthur, Senior Branch Director - Hyderabad at Knight Frank India said, “Despite losing some momentum to the emergence of the Omicron variant, Q4 was the strongest quarter for the year. Some IT sector players who had announced their return to office deferred their plans to the subsequent quarter. Given the substantial hiring that has occurred in the sector since the pandemic, it is a matter of time before its share in transactions reverts to its longer-term average”.
On the office market performance, Q4 2021 was the strongest performing quarter. The quarter witnessed office space transactions of 2.3 mn sq ft. Rents have grown marginally by 0.5 percent YoY in 2021. Accounting for 52 percent of the overall transaction volume in H2 2021, HiTec City continues to be the nerve centre of the Hyderabad office market.
After pandemic, people seek bigger houses
The pandemic fuelled a need for spacious residences. Developers capitalised on this shift in sentiment by launching 35,736 units during the year 2021 which translated to a 179 per cent growth Year on Year.