In Hyderabad, residential real estate looks good compared to the pathetic state of retail real estate and office real estate. Office real estate, on the verge of bounce back, is decent and has no excessive capacity built up. Retail real estate seems to be cutting losses by bringing rentals down and increasing occupancy.
Residential rental yields seem to be inching up as not many units
1. were built
2. not enough were sold (if sold, mostly for end-use)
3. so, not enough rented out (a tight market for rentals)
But, I don't think the activity is going to pick up in hurry. June 2015 is crucial. March 2015 will see close of the current academic year and any petty business dealers or govt. servants of Andhra Pradesh planning to move out will result in the demand scenario becoming clear.
There might be some rub off effect in already frozen market providing opportunities in finished and second sale market. Look out....
Update March 2015 - There is pressure on rentals even in the West of the city home to the IT crowd. But, the office market is reporting good absorption. If the new office place taken is for net-net new business- should result in new hiring and the demand for housing coming back in 6-8 months. The housing market is poised to go through some more pain.
Residential rental yields seem to be inching up as not many units
1. were built
2. not enough were sold (if sold, mostly for end-use)
3. so, not enough rented out (a tight market for rentals)
But, I don't think the activity is going to pick up in hurry. June 2015 is crucial. March 2015 will see close of the current academic year and any petty business dealers or govt. servants of Andhra Pradesh planning to move out will result in the demand scenario becoming clear.
There might be some rub off effect in already frozen market providing opportunities in finished and second sale market. Look out....
Update March 2015 - There is pressure on rentals even in the West of the city home to the IT crowd. But, the office market is reporting good absorption. If the new office place taken is for net-net new business- should result in new hiring and the demand for housing coming back in 6-8 months. The housing market is poised to go through some more pain.
