Hyderabad’s residential and office asset classes have shown resilience in their performances by registering 142 per cent growth in sales at 24,312 units in 2021, this despite the pandemic blues. According to research firm Knight Frank India, 2021 has been the best year since 2011 in terms of volume sales.
“New home launches increased by 179 per cent year-on-year to 35,736 housing units in 2021,” it said.
The year 2021 has been a year of stabilisation for the office space market in Hyderabad with transaction volumes matching the previous year’s annual total at six million sq ft.. New office completions were reported to be 4.6 m sq ft during the same period.
In its report for the second half of 2021, he said as many as 12,344 housing units were sold in Hyderabad in the second half of 2021, showing 135 per cent growth year-on-year, the highest for any city in the country.
Residential prices increased by 5 per cent year-on-year in the second half. West Hyderabad accounted for 60 per cent of the total sales during H2 2021.
“With a share of 48 per cent of overall home sales, the mid segment of Rs 50 lakh to Rs 1 crore constituted the bulk of home sales in the second half of 2021.
Unstoppable growth
The city, the report said, is the only market in the country that has not seen a single year of price decline since the first half of 2013.
On the office market performance of Hyderabad, Knight Frank India said Q4 2021 was the strongest performing quarter of CY 2021. The quarter witnessed office space transactions of 2.3 mn sq ft.
“Residential demand is firmly entrenched in the ready-to-move-in properties and has caused the average age of inventory in Hyderabad to reduce from 11.5 quarters in the second half of 2020 to 7.6 quarters in H2 2021,” he said.
Traditionally anchored by the Information Technology (IT) sector, the office space market has nurtured a diverse tenant base that has supported demand during the second half of 2021 in a challenging environment where the IT sector deferred its expansion plans.
“Office space transactions of 4.4 m sq ft were recorded in the second half, showing a growth of 16 per cent year-on-year,” he said.
The manufacturing sector was the mainstay of the market, followed by the co-working sector.