A few years back, Hyderabad was offering the likes of Bangalore rigid competition for attracting office place investments. Today, after the formation of a new state, a new government and a calm political environment are yet to encourage the confidence that is needed to energize Hyderabad’s real estate fortunes. With the Telengana movement picking up pace, other cities come out as target for IT and ITES players and Hyderabad lagged behind in the race
If the current trends are any pointers, while the residential market in Hyderabad witnessed a price appreciation of 5.4 per cent (year-on-year) in 2015, it is expected to see a 4.6 per cent price rise in 2016.
Hyderabad, which has now become a well known IT center, has been witnessing a strong demand for office place for some years now. As a result, the demand for homes in the city has also grown over the years.
At the sub-market level, in 2016, western border of Hitec City and Kukatpally saw the highest appreciation at 15.6 per cent followed by the northern suburbs of Bachupally and Shamirpet and eastern suburbs of Uppal and LB Nagar both at 4.6 per cent. The prime sub-market of Banjara Hills and Jubilee Hills followed with 5 per cent hike and the secondary sub-market of Begumpet in Secunderabad saw a price rise of 2.4 per cent.
Developers and buyers are confident on the western sub-market, which is the major driver behind Hyderabad’s residential demand-supply dynamics.
Most of the recently-launched projects in the western sub-market are expected to address housing demand in the next 2 years, which in turn will be cause by the heavy employment generation expected here.
On the other hand, the most important sub-markets witnessed reasonable approval due to their higher land costs, which was also complimented by the ongoing metro rail development – the first phase of which will begin in 2016.
The upcoming metro line led to price hold in the northern and eastern submarkets. Capital value approval of villas in the northern sub-market remained sluggish as only a few projects were launched and the demand remained moderate among buyers.
February 21, 2017