How is the real estate in the city faring these days? Is it scoring positively, registering a downward curve or just staying stable?
Jones Lang LaSalle in its Monthly Real Estate Monitor for the month of July seeks to provide a glimpse of how things are for the construction industry in and around the city.
According to its latest report, the residential sales did continue to improve in the city but the pace has not been very fast. Stating that the improvement has been at a modest price, it points out that the capital values across the city remained stable except for projects that were in their final stages of completion.
Three new projects were launched during the month of June and they were Lodha Meridian by Lodha Group at Kukatpally, Aparna Aura by Aparna Group at Shaikpet, Jubilee Hills and My Home Abhara by My Home Constructions at Hitec City. However, the rents increased nominally in few precincts such as Hitec City and Kukatpally, the report says noting that new launches in the market were priced higher than the average market price.
As far as the retail spaces on high streets are concerned, Jones Lang LaSalle report says the demand continued to remain strong during the month. The malls witnessed slow leasing activity while vacancies remained stable as the malls are mostly fully occupied. According to it, Samsung, Reliance Retail and Asian Movies were the key retailers that expanded during the month.
For office market in the city, the leasing continued to remain stable and most of these leases were described as space consolidations.
An interesting observation was that the vacancy increased at the CBD and SBD as many occupiers vacated their existing spaces and moved to Hitec City and Gachibowli.
The rents and capital values in this segment mostly remained stable and as leasable SEZ space has been quickly decreasing in the city, developers have increased rents in SEZ properties in Hitec City and Gachibowli.