Appreciation upto 15% expected in 6 months for Hyderabad realty
The UPAs decision to make Telangana a reality, is expected to boost Hyderabad’s property market that had nose-dived since 2009, when the protests against Telangana gained momentum. Hyderabad being made the joint capital for 10 years would enable the recovery of the realty market to a large extend as it will bring the best of both regions together.
The fall in realty prices in Hyderabad forced investors and developers to seek greener pastures in other lucrative markets like Bangalore, Chennai and Pune. However, with the announcement of Telangana, it is expected that investors will be lured back due to the rise in capital values for residential property. Corporate investments are also likely to go uphill, thereby enhancing employment opportunities in and around Hyderabad. This will indirectly result in developers investing in new residential projects, pushing prices up. It is expected that residential real estate demand is likely to grow by 8-9% in the present scenario compared to the 6-7% that was earlier predicted. Besides, residential capital values are also expected to surge in the next 1-2 years. As much as 15% appreciation is expected in the next 6 months.
The potential of the real estate market in Hyderabad is yet to be fully tapped what with it remaining as one of the most undervalued markets in India in recent years. Hence, this is the opportune time for investors to make a fast buck on their property investments as the market for residential and commercial property is likely to stabilize and grow within the next 2-3 years.
In many adjoining regions of Hyderabad like Gachibowli and Kondapur, property is currently available at Rs. 2,800-Rs. 3,500 per sq ft. Considering that they are still lower than the peak prices of 2008, it can be said that the values are still largely underrated, and have a huge potential to appreciate further.
Kukatpally, Gachibowli and Hitec City form a triangle in Hyderabad, which is turning into a major attraction for corporate investors as well as institutional and retail investors. Banjara Hills and Jubilee Hills being posh residential areas of Hyderabad, it would be a folly for corporate investors to seek investment opportunities in these areas, with prices being considerably higher in these micro markets.
However, the current situation may present an unstable scenario for the real estate market. The prices are likely to fluctuate in the next 2-3 months due to the indecisiveness that is prevailant. However, a clearer picture is likely to evolve thereafter. This is when investments are likely to go up and the market will become more stable. A 15-20% price appreciation is likely to happen in about 6 months time.
Prices are currently considerably low in areas around the Outer Ring road, starting from Gachibowli going upto Puppalaguda, Narsingi Machirevula and Kollur. Hence, it would not be a bad option to invest in property in these areas now since prices are likely to go up in the near future. Besides areas on the eastern part of Hyderabad like Gatkeshwar and Pocharan are seeing developments happening in many plots of land. Hence, it would be appropriate to invest in residential properties in these plots, before an upswing is seen in prices.
