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Real estate trend in Hyderabad

Over the last few years the real estate in Hyderabad has been witnessing a drastic change due to various factors. Unlike other states the real estate market in Hyderabad has been influenced by surprising factors like political uncertainty.These factors have caused a stagnation of the overall market.

The city is basically known as the City of Pearls and is termed as the fifth largest metropolis of India. The current scenario of the real estate market in Hyderabad is that there are many investors eyeing the city for better investments. Despite all the odds the city is moving forward in good deal of activities. The Hyderabad real estate has rapidly changed over the past few years and there is an increase in the commercial property demand from the IT companies. The entry of global players like Microsoft, Oracle, Bann Info, Satyam Computers, and many others have resulted in an increased property demand. The property rates in Hyderabad have soared rapidly.

However, the Residential property buyer sentiments have improved in Hyderabad over the last few years. There has been a demand in the residential property absorption. Also there is an active participation of most of the developers in Hyderabad which is resulting in the production of suitable land parcels. Also various realtors are coming up with different projects in the city. It is predicted that there will be an increase of the PE investments on residential property projects this year. Comparatively, the institutional capital flows were too slow in the city when compared to other cities. The reasons being;

  • High valuations.
  • The global financial crisis
  • The state-level political scenario.

Currently, the real estate valuations in the city are once again developing and the developers along with the end users are all back in action. However, a strong feeling spreads among people that the political scenario will take a turn by favouring the PE investments in the coming years. Apparently, there are signs of residential property being in outstrip demand. The city also witnesses a supply-demand mismatch and a high unsold inventory which creates a greater impact on the residential property. Also there will be a selective price rise for various projects which are in high demand location with extra amenities.

Few real estate trends being practised in Hyderabad:

The budget Sq. ft. aspect:  

Since the Q2, the budget preferences of buyers in Hyderabad has been on a consistent decline. Comparatively, the budget preferences have declined by about 23% in the fourth quarter.

However, the sq. ft. preferences have somewhat shot up in the fourth quarter, the progress is very less when compared to the budget in the change preference. Apparently, the average rate/sq. foot in Hyderabad has stooped down by about 27%. This backlog is correlated with the Telangana movement which was back in 2011.

The BHK aspect:

This concept of BHK is in trend in Hyderabad and is in line with the average square feet preference trend. There is an increase in the demand of 1 and 2 BHK housing from people in Hyderabad. Apparently, there is an increase in the demand for both 1-2 and 3-4 BHK apartments.

The locality preference aspect:

Most of the property seekers are given flexible options of choosing up to 3 localities in a specific city and thus each locality is rated. There is an increase in the locality preference by people. The most sought locality is the Gachibowli which is followed by Kukatpally and Miyapur. Also Padma Rao Nagar has been a surprise package as a Hi tech city preference.

The market mood aspect:

The property investment aspect has been relatively stable in all the areas of Hyderabad. However there is a slight increase in the number of people postponing their buying process which ranges up to more than 6 months.

 

7 Responses to “Real estate trend in Hyderabad”

  1. Many new construction companies mushroomed up in Hyderabad, of late as there cropped up an acute increase in demand for living spaces, owing to rise in inhabitant levels in the authentic city of Hyderabad.

  2. Megha says:

    Well-written.. keep going..

  3. Karanam Sridhar says:

    Well, this is the actual scenario of real estate here.. interesting..

  4. Adil says:

    Got a clear picture of what’s happening in Hyderabad.. thanks for this share..

  5. Mastan says:

    Thanks for giving some knowledge on the present scenario of Hyderabad.. look forward for a stable market here..

  6. Suman Konda says:

    Good to know that the situation is improving.. Hope everything will be back to full swing..

  7. Ramakrishna says:

    Really informative and helpful post.

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