Hyderabad realty showing signs of Revival
If recent price trends is anything to go by, there are evident signs of revival across many major micro markets in Hyderabad. Based on CommonFloor data, it was seen that the sq. ft. prices for apartments increased considerably in the last couple of quarters, indicating a revival in fortunes across major micro markets in the city. Rentals also recorded an increase in many markets, indicating that the realty sector is witnessing a turnaround, for the better.
Sale Price Trends
As per commonfloor data, many major micro-markets across Hyderabad recorded an increase in prices for apartments in recent times. Banjara Hills recorded an increase of about 2 per cent in Q4 2014 compared to the corresponding period last year, and a 1.5 per cent increase compared to the previous quarter. Hitech City recorded an increase of more than 7 per cent compared to the corresponding period last year and an increase of about 5 per cent compared to the previous quarter. Gachibowli recorded an increase in prices by about 7.5 per cent (YoY) and by more than 3 per cent (QoQ). Madhapur recorded an increase in prices by more than 6 per cent (YoY) and by about 4 per cent (QoQ). Jubilee Hills recorded an increase in prices by about 5.75 per cent (YoY) and by about 3.6 per cent (QoQ).
Rental Price Trends
Even though rental prices did not increase in the same measure as sale prices, many major rental markets across the city witnessed a hike in rental prices in recent quarters. As per CommonFloor data, rental prices in Ameerpet increased by about 8 per cent compared to the corresponding period last year. The increase was about 6 per cent in Gachibowli, about 14 per cent in Kondapur, about 3 per cent in Banjara Hills, about 4 per cent each in Kukatpally and Madhapur and about 6 per cent in Srinagar colony.
Future Expectations
Going by this trend, there is expected to be increase in sale and rental prices in other micro-markets in the city as well. With the return of stability to the Hyderabad realty market, investors are not averse towards investing in the city. Moreover, the demand for residential units has gradually picked up leading in a hike in prices, particularly for apartments. Developers with upcoming apartment projects are expected to reap rich dividends as a result of the rise in demand. Fringe areas are also expected to witness a surge in demand for residential plots as well as for villa projects.
