City Beat: Hyderabad Witnesses A Dip In New Launches [Video]
Hyderabad property markets saved the day for India's real estate sector when things looked down. According to a PropTiger DataLabs report for the second quarter (Q2) of the financial year 2016-17 (FY17), homes sales in Hyderabad went up 24 per cent quarter-to-quarter in Q2. Hyderabad also had the lowest inventory overhang of 21 months during this period. At 20 per cent, new launches also increased only rationally. Property prices, on the other hand, saw an annual increase of 11 per cent.
However, a monthly report by PropTiger DataLabs shows new launches fell 97 per cent in the city of Nizams while sales declined 16 per cent. Property prices, too, went down one per cent when compared to the previous month.
However, certain localities saw an upwards trend during the month. In Narsingi, Manikonda, Kukatpalli and Gachibowli, property prices increased up to eight per cent when compared to the same month of the previous year. These localities also contributed the highest to home sales. These areas cater mostly to the affordable housing segment, with property prices ranging between Rs 3,900 sq ft and Rs 4,700 sq ft.
Meanwhile, in the wake of the Central government's demonetisation move, the Telangana government has put on hold its plans to revise market rates for property registration in the state. A revision in rates could further trigger a dip in property registrations that is already being seen after Prime Minister Narendra Modi on November 8 announced currency notes of high denominations will cease to be legal tenders. It is worth mentioning here that property registration is a key source of revenue generation for the state.
In another development, the Telangana Disaster Response and Fire Services Department is set to prosecute about 45 developers and owners of several institutional buildings for flouting fire safety norms. After conducting surprise inspections of about 248 multi-storeyed buildings, the departments found 45 defaulters.