365Telugu.com online news,Hyderabad, October 4, 2023: According to the latest report from Knight Frank India, titled ‘India Real Estate Q3 2023’, Hyderabad observed 2.9 mn sq ft of office space transactions during Q3 2023.
Hyderabad with 5.3 mn sq ft of office space attaining completion during Q3 2023, accounted for 46% of the office space delivered during the quarter across the leading eight markets in the country.
Hyderabad market has scaled a near three-year high in terms of quarterly transacted volumes on the back of the long-awaited supply which came online during the quarter.
The average transacted rent of the city remained stable at INR 65.3 sq ft/month during the quarter.
During Q3 2023 the major leasing activity was recorded by Global Capabilities Centers transacting 75% of the total area transacted during Q3 2023 .
Hyderabad accounted to 31% of the consolidated GCC area transacted area in the country. Flex office spaces constituted 13% of the total volume transacted which was then followed by India Facing Business and Third Party IT Services transacting 10% and 2% area respectively.
| End-User Licensee/Buyer | GCC | Third Party IT services | India-Facing Business | Flex | Total |
| Area transacted in mn sq ft | 2.2 | 0.1 | 0.3 | 0.4 | 2.9 |
Source: Knight Frank India
The report cited that the top eight markets of Indiahas recorded office transactions of 16.1 million square feet (mn sq ft) recording a growth of 17% YoY during Q3 2023.
The elevated demand in the Indian office market reflects the confidence of occupiers as India continues to see economic stability despite global uncertainties. New office completions in Q3 2023 were recorded at 11.5 mn sq ft across the leading eight cities of India.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The relative strength of the Indian economy continues to attract global corporate interest and is reflected in the recovering demand in the Indian office space market.
The increasing incidence of GCCs being set up in the current quarter also points toward greater occupier commitment to the overall operational and business environment that India offers.
Occupier demand has trended up well over the year and looks to be on course to exceed levels seen in the previous year. It is the broader economic forces of inflation and GDP growth that will take centre-stage in shaping the fortunes Indian office market in the next few month”.
Hyderabad witnesses highest residential price appreciation of 11% YoY in Q3 2023: Knight Frank India
Hyderabad recorded the highest residential price appreciation of 11% YoY during Q3 2023 for which the average price level was recorded at INR 5,518/sq ft. A total of 8,325 units were sold in the quarter while 11,034 units were launched during the period.
During Q3 2023, 52% of the residential sales were in the ticket size of 10mn and above. The ticket size between 5mn to 10mn and below 5mn constituted 39% and 9% respectively in the market.
Ticket-size split of sales
| Ticket Size Categories | <5 mn | 5-10 mn | 10 mn> | Total |
| Q3 2023 | 749 | 3,247 | 4,329 | 8,325 |
| YoY % change | -44% | -2% | 34% | 5% |
Source: Knight Frank India
Knight Frank India cited that the leading eight residential markets in India continued to show strong growth momentum. During Q3 2023 (July – September 2023), Indian markets saw a surge in demand with sales of 82,612 residential units recording a growth of 12% YoY. In volume terms Q3 2023 recorded a six-year high in quarterly sales volumes.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, remarked, “Residential sales continue to gain momentum, reaching multi-year highs. Although inventory levels have seen a significant rise due to developers launching projects to cater to this robust demand, the overall market health is improving, with strong sales velocity.
Elevated interest rates and prices have had little impact on higher-ticket-size homebuyers, but the affordable segment has been severely affected, necessitating further interventions to stimulate demand and enhance development viability.”
Shishir further added, “While we celebrate overall residential market growth, concerns arise, notably in the affordable segment, which has seen a steady decline in Q3 2023. Economic turbulence in recent quarters hit lower-income consumers, affecting segments like rural consumption and lower end of passenger vehicles sales.
This decline in affordable housing segment is worrisome because it’s been the largest buying segment, crucial for long-term industry growth. Prolonged slowdown could harm the real estate sector in the long-term. Therefore, stakeholders must reconsider strategies to revive the affordable segment and maintain its momentum.”