Rents and capital values remained stable, except for projects that were in their final stages of completion.
Residential sales remained subdued in the City in July, as people in Andhra Pradesh mostly do not invest in property during the Indian month called Aashadam. There were also no new launches over last month. Rents and capital values remained stable across the City, except for projects that were in their final stages of completion, according to JLL monthly real estate monitor.
There is a also a sign of relief to the residential real estate developers. “The GO 45, which made it mandatory to earmark 20 per cent of developed land for the EWS/LIG category in all housing projects sized one acre and above, was revised to GO 245. As per GO 245 the specifications of the EWS/LIG category have been relaxed to include housing projects starting at five acres, instead of one acre. There were few other revisions made to GO 245 that now make it more developer-friendly as compared to the earlier version,” the report stated.
The retail spaces demand on high streets continued to remain strong in July. Malls witnessed slow leasing activity. With growing demand, rents also increased nominally at a few high streets. Rents in malls continued to remain mostly stable, as the malls had less leasable space and no new malls completed in the month. Retailers like Chroma, Ratnadeep, Zodiac have opened new stores in the City, it stated.
According to the report, Hyderabad’s office market continued to witness stable leasing activity in July with tenants expanding in all sub-markets. Pre-commitments also continued over the month. As leasing activity continued to remain stable in Hitec City and Gachibowli, vacancy decreased in these sub-markets.
However, the rental values of offices in Bangalore and residential property values in Bangalore, Pune and Mumbai are on rise. The other cities maintained stable rental and capital values in both office and residential spaces in the month, the JLL monthly monitor said.