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Hyderabad pips Bengaluru & Chennai in New Housing Launches

<span style="font-weight: 400;">India's Hi-Tech city, Hyderabad, accounted for nearly 45% of the total new residential launches during the first quarter of 2021 among four key cities of the country, including Bengaluru, Kolkata and Chennai, according to real estate consultancy firm Vestian.</span>

BY Realty Plus
Published - Jun 1, 2021 4:51 AM

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India's Hi-Tech city, Hyderabad, accounted for nearly 45% of the total new residential launches during the first quarter of 2021 among four key cities of the country, including Bengaluru, Kolkata and Chennai, according to real estate consultancy firm Vestian. As many as 9,984 residential units were launched in Hyderabad out of the total 21,963 units launched in these four cities, putting Bengaluru at second spot with a 34% share in new launches, followed by Chennai and Kolkata with a 14% and 7% share, respectively, said the report titled ‘Connect Q1 2021’. According to the report, affordable and mid-segment housing accounted for a chunk of the new launches during the quarter. While the second and third quarter of the previous year had seen lockdown affecting the number of new launches in the city with migration of labour being one of the major concerns, the year-end saw the market improving substantially as developers resumed their plans of launching their projects. The full-scale resumption of construction activities and positive buyer sentiment has contributed to the rise in the number of new launches during Q1 2021,” Vestian said. When it comes to new office space completions too, Hyderabad led the way with 48% share with 3.9 million sq ft out of the total 8.2 million sq ft new office space completions in five major cities that included Mumbai, Bengaluru, Kolkata and Chennai. Hyderabad was followed by Bengaluru with 41% share (3.4 msft) and Mumbai with 10% share (0.8 msft) and Kolkata with just 1% share (0.1 msft). In Q1 2020, Bengaluru was streets ahead of Hyderabad in terms of new office space completions at 3.9 million sq ft vis a vis 1 million sq ft, and Mumbai had 2 million sq ft. However, when it comes to office space absorption, Hyderabad lagged behind Bengaluru and Mumbai. The five major cities clocked a total office space absorption of 7 million sq ft, a 23% drop over Q1 of 2020. The report said that though the office space demand in the Hyderabad market slowed down nearly 21% in Q1 2021 with an absorption of 1.3 msft as compared to 1.64 msft in Q1 2020, the city’s office market is expected to gain momentum with a large quantum of pre-committed space getting operational shortly. It also said that the west region comprising Hi-Tec City and Gachibowli continued to attract occupiers and accounted for a major share of the leasing activity during the quarter with IT/ITeS sector leading the demand and flexible space operators too accounting for several deals during the quarter.  

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Tags : News/Views Bengaluru Hyderabad Kolkata Chennai India Launches New Housing