Hyderabad records rise in residential property valuation on the East and West
Hyderabad is seeing a rise in property valuations of late, with the property valuation index of the city recording an increase of 3% in Q3, 2013. Due to property values being considerably low at the moment, many buyers are planning to upgrade to premium residences due to their affordability.
Affordability factor causes rise in demand for luxury residences
Due to the affordability factor, there has been an increase in demand for luxury residences in the Rs.40-80 lakh budget category. Premium residences in the 2-BHK and 3-BHK unit category were more in demand. Since 4-BHK units were comparatively less in demand, there was an oversupply of such units.
Western parts record increase in demand and valuation:
It has been observed that areas in the western part of Hyderabad such as Gachibowli, which are closer to the central business district are more in demand, both in terms of sale as well as rental perspectives. Besides, being part of the IT hub, other advantages like connectivity, infrastructure and convenience of living are influencing factors. Another notable aspect with regards to buyer preference is that areas which lead to very busy roads like the Outer Ring Road (ORR) are generally not preferred too much, as there are other areas which are comparatively more feasible.
Valuation in prices by 5% across 77% areas:
Due to the consistent demand, valuation in prices to the tune of 5% has been observed in as many as 77% areas across the city. Banjara Hills as well as Jubilee Hills, along with many parts of Madhapur have recorded the highest increase in rental values for premium residential properties. There has also been a small rise in rental values for affordable properties close to IT hubs. As a result, there has been an increase in yield from residential property
Valuation enhances following resolution of Telangana imbroglio:
The Telangana imbroglio has negatively impacted the realty market in Hyderabad in the recent past, with prices crashing to an all time low. However, following the announcement regarding the bifurcation of the state earlier this year, there has been a positive sentiment in realty circles. The job prospects in the city has also considerably been enhanced in the aftermath. Besides, the fact that Hyderabad will continue to remain the joint capital of both the states for ten years following the bifurcation, has been received with glee, among developers and buyers alike. This has also had a positive impact on valuation across different areas of the city
Demand and supply higher in west and east parts of city:
The average property value across the city can be rounded off to Rs.2,200 per sq.ft. In capital value terms, this can be considered to be the least expensive value across all cities in India. In Hyderabad, the demand and supply were considerably higher in the western and eastern parts of the city, compared to other zones. The north and south parts of the city had a relatively stable demand, especially in some pockets. One such pocket is Shamshabad, on the south, which has had a positive impact on realty due to its proximity to the international airport. The central part of the city has remained sluggish in realty terms, with the possibility of development remaining far-fetched.
