The city markets witnessed a 25 percent rise in new launches and more buyers are coming forward.
Optimism rides high in Hyderabad’s real estate market. Investors will be delighted to know that residential inventories are moving as buyers become enthusiastic towards making a purchase. Developers have already caught the pulse of the market and as a result one can witness new launches.
Supply of residences
The city markets witnessed a 25 percent rise in new launches by reputed developers. This is a mammoth change in the attitude of the developers who last year were extremely cautious. Late last year, there was rather a decline by approximately 10 percent in the number of launches. Ready-to-move-in properties also saw demand from consumers.
If the current sentiment and transactions continue, the market will endure stability in times to come.
As a buyer or an investor, one can expect all kinds of property types if interested in making a transaction. Average value of properties which is most in supply is Rs 3,000-4,500 per sq ft.
A healthy mix of local and reputed developers are optimizing the positive sentiment. Some of them include Godrej, Mahindra Life space, Prestige, Lodha, TATA, etc. The presence of strong names is also suggestive of the future potential of the real estate market. Most of the big names are offering modern amenities within gated housing societies.
“Local buyers are opting for affordable properties which is understandable. Hyderabad is known to be a price-sensitive market, therefore the new inventory mostly settles in this price category,” says Siva Sankar from S4 India.
Triggers of consumer demand
What triggered the change in attitude? Several reasons actually. Infrastructure development can be one of the prime reasons behind the optimism riding in the market.The state government has painstakingly taken steps to initiate city development which will boost consumer demand.
The government has brought about a change in policies which favour the entry of companies within city limits. This has been quantified by a report which estimated 107 percent growth in demand for office space in the early months of this year. To name some biggies Amazon, Micromax, Google, etc are expected to better the employment market of the city. The ripple effect would be the development of the residential market. This effect can already be witnessed as acclaimed developers are constructing projects along the ITI/TeS corridor indicating confidence amongst buyers. Apart from the ITI/TeS industry, the manufacturing domain has also fuelled residential demand in the region.
Like other cities, connectivity should also be factored in for infusing optimism. The Metro project will improve connectivity to other parts of the city. The metro link between Miyapur to LB Nagar is anticipated to bring in a significant change in the lives of daily commuters. National Highway-9, connecting Hyderabad and Pune and Outer Ring Road (ORR) connecting to other areas of Hyderabad, will also contribute in improving the connectivity of the region.
Commercial developments in nearby localities such as Kukatpally and Miyapur will also improve consumer demand. Proximity to ITI/TeS zones in Hitec City and Gachibowli can also improve transactions in the market.
Areas with new launches
Tellapur, Gachibowli, Lingampally and Kondapur in the north-western node of Hyderabad are some areas with the highest number of new launches.
The popular property configurations include 2, 3 and 4BHK units and property types available mostly comprise of apartments and houses and villas. The budget brackets however vary.
Amenities being offered are modern but may vary depending upon the developer and the property values. The spectrum of amenities include: In the next 5 years, the city market has the potential to enjoy up to 7 percent property value appreciation. With so many positives in favour of the real estate market, Hyderabad does indeed ride on optimism.
Share with us your expectations regarding home price movements and your decision to buy a house.
Source: Namrata Ekka, Times Property, Magicbricks Bureau/ Hyderabad
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