hyderabad with steady absorption coupled with improving demand hyderabads unsold residential inventory has come down to their lowest point since 2010 bringing some cheer to the lacklustre market said a report by property consultant knight frank there was absorption of 14093 units in 2015 as against the 11197 launched as new launches dropped by 14 per cent in 2015 continuing the trend from 2014 the annual trend in launches shows a clear decline however the half yearly trend over the last three periods shows supply numbers stabilising gradually said vasudevan iyer branch director knight frank hyderabad the report also hinted towards a recovery of 5 in absorption yearonyear during the first half of 2016 according to city developers price correction is inevitable as hyderabad property prices are already rock bottom and hence there will be a price appreciation residential units witnessed a growth of 31 per cent year on year during the second half of 2015 on the other hand the office market despite a minor dip in absorption posted robust numbers indicating an upward trend in office space absorption in 2015 there was absorption of 46 million square feet as against 47 million sft a year ago office space absorption is likely to push up by 23 yearonyear in the first half of 2016 while an approximate 19 million sft space is expected to come up the report said robust absorption coupled with falling supplies pushed vacancy levels to 144 per cent at the end of 2015 from 177 per cent in 2013 interestingly the second half of 2015 experienced the highest absorption levels of any halfyearly period in history on the back of bigticket transactions by qualcomm salesforce unitedhealth group and jp morgan simultaneously rentals have been increasing steadily since 2012 and picked up momentum after the second half of 2014 post the resolution of telangana issue also severe shortage of good quality office space in prime areas has turned the market in favour of landlords who are asking for higher rents from tenants with each passing quarter the rentals are expected to rise by 7 per cent in the first half of 2016