Residential sales in Hyderabad hit a new high of 32,880 units in 2023

Office space transactions touch 88 lakh sqft

Hyderabad: Residential sales in Hyderabad rose 6 per cent on an annual basis to hit a historic high of 32,880 units in 2023. Hyderabad also recorded 88 lakh sqft office transactions in 2023 led by Global Capability Centres (GCCs )

Residential launches in the city increased by 7 per cent to 46,985 units in 2023, which is also a new high. The average price of residential units has gone up 11 per cent, according to Knight Frank India's latest ‘India Real Estate - Residential and Office Market Report’.

Almost half of the total transactions were in the premium ticket segment of Rs one crore and above. This is an increase of 38% to 16,086 compared with 11,632 units in 2022. Also, 43% of the new launches were in the same price segment. The average price has been Rs 5,500 per sqft.

Transactions in the below Rs 50 lakh fell 35% from 5,630 units in 2022 to 3,674 units in 2023. Mid-value segments, priced between Rs 50 lakh to Rs one crore, saw a sale of 13,120 units.

In the office space segment, substantial take-up by GCCs, especially those outsourcing their IT and back-office operations to the city, played a pivotal role in the overall surge of 32 per cent in annual transaction volume growth. Office leasing activities by GCCs increased by 52% to 41 lakh sqft during 2023, up from 27 lakh sqft recorded in 2022. The new office supply in the city was recorded at 65 lakh sqft. The average transacted rent remained stable with an increment of one per cent to Rs 65.5 per sqft per month.

Third-party IT services primarily engaged in outsourcing services to clients abroad, constituted 28 per cent of total transactions during 2023. Transaction volumes increased from 16 lakh sqft in 2022 to 25 lakh sqft during this period.

Occupiers showed a strong preference for leasing office spaces in the suburban business districts (SBD) zone. HITEC City continues to stand out as the primary hub in the Hyderabad office market within the SBD zone.

The average transacted rental range was recorded highest at Rs 68-75 per sq ft per month in the Suburban Business District comprising Hitec City, Kondapur, Manikonda, Kukatpally, and Raidurg. BFSI sector, IT/ITeS sector, and flex spaces were the major segments.

“Hyderabad boasts of a robust and well-planned network of roads, flyovers, underpasses, and wide ring roads.

The government's ongoing investments in key infrastructure projects, including the Hyderabad Metro Rail and the Regional Ring Road, are anticipated to enhance the city's appeal,” said Joseph Thilak, national director- occupier strategy and solutions (Hyderabad and Chennai), Knight Frank India. The city has some of the best office parks with steady rentals, he said.

( Source : Deccan Chronicle. )
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