Banjara Hills’ witnesses dip in demand due to rise in prices
Banjara Hills, a posh locality located about 8 km to the west of the heart of Hyderabad, was hitherto a much-sought after residential area. Renowned for premium residential property, it houses many celebrities of Hyderabad. However, in recent times the demand for residential property in the area has dipped considerably, due to rising prices compared to most other areas. This fall can be noticed in Q3, 2013 compared to the previous quarter.
Causes for fall in demand:
This fall in demand can be primarily attributed to the rise in prices of residential property in the area. Compared to other areas of the city like Gachibowli and Hitech city, which are part of the IT hub, prices of property in Banjara Hills is considerably higher. Most of the residential units available in Banjara Hills belong to either the 3 BHK or 4 BHK category, with prices ranging from Rs.1-3 crore and above. Besides, the availability of property in many areas in the vicinity like Madhapur, Manikonda and Nanakramguda are also responsible for this shift in demand.
Reasons for rise in prices:
Some of the factors that have contributed to the spurt in property prices are the availability of various physical and social amenities like reputed schools and colleges, renowned hospitals, office complexes, shopping facilities etc. The availability of mostly premium residential properties especially meant for the elite class has meant that property prices are always on the upswing. This has resulted in the area not being considered affordable for middle class buyers who belong to lower income groups.
Demand surge for rental accommodation:
However, there has been considerable demand for rental accommodation in Banjara Hills due to its proximity to IT hubs like Hitech city and Gachibowli. Being about 10 km from Hitech city and about 14 km from Gachibowli, it is a prefered area for IT professionals, especially in managerial positions and above to take up rental accommodation in the area. Besides, it is also renowned for its proximity to the airport and railway station. It is just 5 km from Begumpet airport and about 4 km from Nampally railway station through the Inner Ring Road (IRR). The average rental for a 3-4 BHK residence in the area ranges between Rs.30,000-1 lakh per month.
