How Hyderabad fared in 2019

Real estate in Hyderabad stayed afloat due to a stable political fabric, constant inward migration of working professionals and enhanced infrastructure, among others. Initiatives like Hyderabad Metro Rail, development of arterial roads and elevated corridors in and around IT hubs of Gachibowli, HITEC City and Tellapur helped boost the city’s profile and prospects. Also, the creation of new districts in its vicinity created fresh avenues for overall real estate growth.

Commercial leasing on a high
Increased office leasing activity in recent times has positioned Hyderabad as one of the most active commercial markets in the South. It has emerged as a major office hub on the back of proactive governance, robust infrastructure, ease of doing business and quick project approvals.

Comparatively low rentals for Grade A office space gives the city an edge over Chennai and Bengaluru. With the likes of Amazon and Apple leasing big spaces in Hyderabad, the city is giving Bengaluru stiff competition and may soon catch up with it.

Residential market stays afloat
Hyderabad has performed moderately well in the residential market and is witnessing increased activity due to its affordable property prices. Moreover, builders have restricted their new supply in the market, choosing to focus instead on clearing their previous unsold stock.

Hyderabad saw its unsold housing stock decline by an impressive 12% annually in Q3 2019. Hyderabad's unsold stock stood at just 23,900 units — the lowest among the top seven cities.

Fast forward 2020
Considering the present scenario, Hyderabad's housing sales could see 6-10% jump over the next one year, while new launches are likely to remain muted. The office market will continue to go from strength to strength with largescale projects coming up in Madhapur and Gachibowli.

In retail, 12 new malls spreading over 6.5 mn sqft are likely to come up in Hitec City, Secunderabad, Begumpet and Miyapur by 2021-end.

Comments Section

  • - Mazhar Mohammad, Chartviewindia 04/01/2020Reply

    Intraday traders can look to go long if Nifty sustains above the 12,300 level for more than 30 minutes on Friday and look for a target of 12,390. Contrary to this, a strong close below 12,168 level may lead to weakness in Nifty

    • - Gaurav Ratnaparkhi, Sharekhan 04/01/2020Reply

      Nifty is now a stone’s throw away from its all-time high of 12,293. Structurally, it has climbed towards the upper end of the consolidation range i.e. 12,300. Once the 12,300 level taken out, it will march towards 12,350 and subsequently to 12,400, which is near the rising trendline and daily upper Bollinger Band. The 12,220-12,200 zone will act as immediate support

  • - Ashwin Patil, Senior Research Analyst 04/01/2020Reply

    Among two-wheelers, we prefer Hero MotoCorp as it is a proxy to the economy and rural growth, and an expected good Rabi crop output will drive sales in rural India (55% of volumes). We also like Bajaj Auto, which is now finding good traction in exports markets. On the PVs, we still like Maruti as it is a market leader in PV segment and has a wide array of models in all the segments. Its strength in the rural markets is also its positive. We also like M&M, as robust Rabi crop output and increased MSPs will trigger UVs as well as FES growth. Within the CV space we like Ashok Leyland which is away from any global headwinds. Any news on scrappage policy may lead to a sudden spur in CV stocks

    • - Chandan Taparia 04/01/2020Reply

      Nifty has been consolidating between 12,118 and 12,293 levels since last 11 sessions and now a decisive range breakout with followup action can drive the fresh leg of rally. The index has to continue to hold above 12,250 level to witness an up-move towards the 12,350-12,400 zone, while key support has shifted to 12,150 level

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