Realty Shines In South; Hyderabad Sees 176% Spike In New Launches
It seems developers are back into the business in major cities of south India. According to PropTiger DataLabs report (Monthly Realty Watch: South India, August 2016) , new launches saw a reversal of events — from hitting the rock bottom to registering a substantial increase — in July, amidst property prices registering positive growth across localities.
The launch pad
According to the report, the combined new launches in Bengaluru, Chennai and Hyderabad saw an increase of 13 per cent in July, as compared to a decline of 45 per cent in the previous month. With an outstanding increase of 176 per cent, Hyderabad led the pack holding 37 per cent of the total launches.
Developers who ventured in Hyderabad include Aditya Constructions, Celebrity Group, Himagiri Builders, Matrix Infra, Sahiti Constructions and Western Constructions. In Bengaluru, Aratt, Infrany, Vaishnavi, Prabhavathi and Shri Balaji Builders launched their new projects, while Jones Foundations, Radiance Realty, Sree Sai Foundation and VHS launched their projects in Chennai.
The price rise
According to the report, property prices across the three cities saw an annual increase in the range of 2 to 13 per cent. In Bengaluru, while Hebbal saw a price surge of 13 per cent, localities such as Hennur and Sarjapur Road witnessed an annual appreciation of three percent in July. Localities of Yeshwantpur and Whitefield in the city saw a price rise of seven and six per cent, respectively.
In Chennai, Sholinganallur saw the highest annual price rise of nine per cent, while prices dipped in Oragadam, Poonamalli and Tambaram. The property price increase in Hyderabad, on the other hand, remained consistent, with almost all the localities witnessing a price surge. Boiguda and Manikonda were the shining stars and registered a nine per cent annual rise in prices.
Commercial space attracts demand
According to the report, India's information technology capital Bengaluru saw a lot of fresh investments in commercial space in recent times. While IT major HP leased 500,000 sq ft of office space in the city, Mitsubishi Elevator set up a new manufacturing plant here.
These trends point to the rejuvenation of the real estate sector in the country's southern market.