Hyderabad reality facing its biggest slump
HYDERABAD: Residential property sector continues to fare poorly in the market across India as there has been a severe decline in the launch and sale of new projects, according to Knight Frank India's report, 'India Real Estate Outlook', which was released here.
Hyderabad witnessed an 18 per cent drop in sales in the second half of 2014 and new project launches have fallen by 38 per cent in the city. The National Capital Region (Delhi) is the worst-affected with a fall of 43 per cent.
'The pan-India sales have been bad in the residential sector for the past three or four years. It has been a worrying situation in Hyderabad since it is competing with Tier-II cities such as Indore and Agra rather than metro cities like Bengaluru and Mumbai. So it's time to plan for bringing back the past glory of Hyderabad,' said Gulam M Zia, executive director of Knight Frank India.
Even though the city witnessed a marginal rise in prices (around 5 pc), there were 35,183 unsold units in Hyderabad, which is at the bottom of the list of metro cities. 'The housing sector is in dire state. This is because Hyderabad has a very old inventory. So it is very difficult to conduct sales,' Zia observed.
Realtors assert that political stability has not had an immediate impact on the residential sector as market continues to lose steam. 'Even after the new government is in place, there has been little improvement in the residential housing scene.
This is mainly because Hyderabadis have adopted the 'wait and watch' approach,' explained Vasudevan Iyer, Hyderabad branch director, adding that the west of Hyderabad had seen more activity because of the location of IT sector.
News Posted: 31 January, 2015
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