Hyderabad: Hyderabad real estate growth is catching up fast. Countering the demonetisation impact, the city topped the list with a 36 per cent residential sales penetration followed by Pune at 34 per cent during the first nine months (January-September) of 2019, backed by strong office space growth over the past quarters.
Sales penetration implies the proportion of sales in a particular time period considering the available units at that point in time, which is a cumulative of both stock carried forward from 2018 and the fresh stock created during the nine months of 2019 that is available for homebuyers.
Dr Samantak Das, chief economist and head of Research & REIS, JLL India, told Telangana Today, “Hyderabad has been gaining traction both on the residential and commercial front along with large potential for investments.
The city has shown rapid growth in the office space in the last consecutive quarters which is translating into residential sales growth. It is the only city that has shown quick turnaround from 2017-levels.”
Among all top cities of India, Hyderabad topped the chart in office net absorption and new completions, registering a 36 per cent and 44 per cent market share, respectively, in the July-September quarter. Such growth rate is boosting the city’s residential sales.
On the other hand, Delhi registered the lowest sales penetration rate at 13 per cent followed by Kolkata at 17 per cent. The city level analysis shows that Chennai registered its highest ever sales penetration since 2014 in the first nine months (January-September) of 2019 at 33 per cent. All other cities have registered growth in the January to September period of 2019 as compared to the same period last year except Bengaluru. Mumbai, however, is the only city that has not yet shown any signs of recovery.
Demonetisation brought a major disruption in the real estate sector two years back. Kolkata and Hyderabad took the maximum hit then, falling from 28 per cent to six percent and from 29 per cent to nine percent, respectively.
Das adds, “Hyderabad showed revival in sales along with other cities limping back to pre-demonetisation level. While Hyderabad was one of the worst-hit cities, it has not only recovered from the slumps but also crossed the pre-demonetisation level and had the highest sales penetration level out of all the cities in the first nine months of 2019.”