The year 2017 was eventful for real estate sector with the roll-out of game-changing policies such as GST and RERA. Demonetisation’s impact started to taper off slightly, while real estate investment trusts (REITs) did not take off this year as expected. Affordable housing came out of the shadows and affordably-priced units have been selling like hot cakes in most cities. Hyderabad is seeing consistent growth across asset classes.
In the office space segment, vacancy levels remained unchanged through 2017, hovering at around 14% pan India. Select markets saw lower vacancy levels and are expected to see a further decline in 2018. Overall vacancy levels will likely hover around 15% during next year. Very low vacancy rate and continued demand in the prominent office corridors of Hyderabad and other cities will help better rental appreciation in 2018.