Hyderabad: Property sellers to benefit by waiting

Residential property owners planning to sell their existing property in Hyderabad will stand to gain by 15-20% if they wait for another three to six months. With Hyderabad currently being a buyer’s market, it would be the ideal time to invest in residential property now as the prices are generally stable in the city. Moreover, with the General elections round the corner, prices are set to rise thereafter. Hence, this is the opportune time for buyers to invest in residential property at lower prices till such time when prices go up.

Paradoxical situation:

However, presently, there is a paradoxical situation surrounding the Hyderabad real estate market. This is with regards to second home buyers in the city who plan to sell their existing residential property and upgrade to a better house. Such buyers are faced with a conundrum as to whether they should sell their existing property when the prices as still low. While it is an ideal time to buy property, selling property now would mean that owners would have to undervalue their property as prices are relatively stagnant presently.

Appreciation expected in upmarket areas:

In such a scenario, it would be better for property owners intending to sell their property to hold on for another four-five months, and re-access the situation post the elections. Depending on the area in which their property is located, prices are expected to increase post the elections. Many areas like Hitech city, Banjara Hills, Jubilee Hills, Gachibowli, Tellapur, Madhapur etc are expected to witness spiraling prices post elections. Besides, areas towards the north of the city like Miyapur and Bachupally are also expected to see considerable appreciation in realty prices.

Playing the waiting game:

Property owners planning to sell their residential property in such upmarket areas would benefit by being patient. It is expected that residential property that is currently available for about Rs.5,000 per sq.ft would be worth around Rs.6,000 per sq.ft in a few months time. As per estimates, the residential property market of the city is expected to witness a price rise of about 20% in the next six months to one year.

Trade-off:

Property owners planning to sell their existing property so as to upgrade to a better house are hence faced with a dilemma. It will have to be a trade-off between the price he manages to sell his property now and the price for which he manages to buy a better residential property. However, if he is not able to arrive at a suitable decision, it is better that he waits for such time when he is able to strike a better balance.