From South, With Love: Hyderabad, Chennai See Increase In New Launches
When new launches across the major cities of the country saw a major drop, the news that the numbers have seen an uptrend in a particular region is a clear indication that those markets are up for revival. According to a PropTiger DataLabs report for the month of April, new housing unit launches in the southern region saw an increase of 27 per cent over the previous month. Property prices and sales figures, too, give reasons to hope for better in future.
The report, Monthly Realty Watch-South India-May 2016, takes into account the property markets of Bengaluru, Chennai and Hyderabad.
Hot in Hyderabad
While a slump took over all the major property markets across India, Hyderabad witnessed a year-on-year (YoY) price increase of five per cent. Further, localities across the city saw a YoY price appreciation in the range of two to eight per cent. After the statehood issues got resolved, the performance of this southern market has continuously increased. New launches in the city also saw a significant increase in April, with developers such as Kalpataru and Salarpurla launching projects. The Andhra Pradesh government recently announced that it would allow maximum 12 floors in the residential zone. This may further trigger more construction activity in the city.
Picking up: The Chennai express
When it comes to registering new launches in the month, Tamil Nadu capital was not behind Hyderabad. Developers such as Appaswamy Real Estates, Radiance Realty, Muktha Housing, Ramky Wavoo, Jansen Infrastructure and Call Express Construction launched new projects in Chennai in April. However, when it comes to price appreciation, there is a difference. While localities such as Sholinganallur, Alandur and Oragadam saw a YoY price appreciation, other localities witnessed a marginal decline. The demand may increase in coming months on a better supply.
Why Bengaluru is still the best
Despite the fact that developers such as Bren, Goyal and Co Hariyana Group, Mitta Group, Expat and Keystone Properties launched new projects in Bengaluru, according to the report, the real estate market here saw a five per cent decline in new launches over the previous month. However, a YoY comparison shows localities across India's information technology capital saw an increase. Among the steps that may further shape the real estate market in the Karnataka capital are several civic changes. For instance, the Bruhat Bengaluru Mahanagara Palike (BBMP) capped the property tax increase at 20 per cent for residential properties and 25 per cent for non-residential buildings. The commercial real estate space in Bengaluru is thriving is evident from the fact that search engine Google has signed an agreement with Bagmane World Technology Centre in Bengaluru to take about 100,000 sq ft of office space on lease.