2019 was a lacklustre year for real estate sector in major cities in India with liquidity crunch, decline in sales and poor investor demand hurting growth. However, Hyderabad was an exception showing steady growth in both commercial and residential real estate.
The city saw net office space absorption of close to 6 million sqft in the first three quarters of 2019 in commercial real estate. Hyderabad witnessed technology companies Amazon, ServiceNow and Intel occupying large office spaces in the year.
Infrastructure initiatives like Hyderabad Metro Rail, new arterial roads and elevated corridors under SRDP (Strategic Road Development Plan) in and around Special Economic Zones of Gachibowli-Financial District and Hitec City helped a lot in attracting new investments.
Affordable housing prices and massive inward migration helped Hyderabad maintain growth in the residential real estate market as well. The city saw 21 per cent y-o-y increase in the number of sold units in 2019. The state also has the lowest unsold housing units compared to other major Indian cities.
Many localities surrounding the ORR (Outer Ring Road) have seen growth in plotted development projects. Places such as Shankerpally, Chevella, Shadnagar-Kothur, Maheshwaram-Mucharla-Adibatla, Bhongiri- Yadagiri and Shameerpet have seen development of open plot projects in 2019.
New launches in residential market in 2020 are expected to be moderate in number as focus for developers in the first half of the year would be to clear the unsold units. While new commercial spaces coming up in the West and core parts of Hyderabad will result in another growth year for commercial real estate in the city.