Hyderabad Realty: Affordability factor a boon for End Users
Hyderabad holds a distinct advantage in terms of affordability compared to other metro markets like Delhi and Mumbai. It can basically be called an end-user driven market, with prices being 40-50% cheaper compared to other metro markets. However, with the decision regarding the bifurcation of the state still in the balance, there is state of indecisiveness in realty circles with regards to pricing.
Previous two quarters see rise in prices:
There is a general feeling of skepticism among buyers with regards to investing in realty in the city, with prices expected to drop in the next six months. However, this notion is far from reality, with property values in the city rising by 10% in Q2, 2013, and by 5% in Q3, 2013. This is a clear pointer that capital values in the city are on an upswing.
Property prices comparatively lower than other metros:
With the property prices in the city being about 40-50% lower compared to prices in other metro cities, it is generally considered as an appropriate time to invest. Moreover, the infrastructure development of the city that includes well-developed roads, the ORR as well as the Metro, compliments the realty market of the city. The city’s status as an end-user driven market is well validated by the fact that around 80-85% of the total realty transactions are directly from end users.
Immediate future provides ideal opportunity for buyers:
With the General Elections round the corner, a general state of apathy is expected in property transactions in the next six months. However, this lag will enable buyers to negotiate favourable dealings with developers and brokers. Considering that this is a temporary phase that could last till the elections, it would be an ideal period to invest in property in the city. Moreover, with the bifurcation of the state also withstanding, with uncertainty clouding the future, buyers could not find a better time to go ahead with investments. Following this phase of lethargy, prices are gradually expected to increase.
Availability of wide price range options:
Another important advantage that buyers possess at the moment is the availability of surplus inventory. This enables them to choose from a wide range of property options, with better negotiation capabilities. Currently, there is sufficient supply of property in the price range between Rs.20 lakh – 1 crore. This indicates that property prices across the city are likely to remain stable in the immediate future. This situation presents a double bonanza for home buyers, especially NRI buyers, to leverage on the high dollar value along with low realty prices. Till the ‘good times’ last, it would be beneficial for prospective buyers to ride on the crest facilitated by low prices.
13/11/2013
