Prices of Hyderabad’s real estate reaches the sky
Hyderabad: In spite of the city being commonly regarded as one amongst the most affordable within the country for apartment buyers, ironically, more than half of all the residential properties put up for sale in the city of Hyderabad costs north of Rs 50 lakh.
Even cities such as Chennai and Bangalore which roughly have only a quarter of all the houses for sale priced upwards of Rs 50 lakh. However, according to Realty experts, the prices within the city are placed at the bottom and would only increase in the coming days.
As per a recent research conducted by internationally acclaimed realty experts – Knight Frank, approximately 51 per cent of the total units under construction within the city are priced below Rs. 50 lakh while 49 per cent are priced north of Rs. 50 lakh. On the contrary, the report states that the city of Bangalore had 77 per cent of all its houses under- construction priced below Rs 50 lakh, while the city of Chennai had roughly 75 per cent of similar residential properties.
In accordance with the report, the most affordable market for house hunters in the country is the real estate of Bangalore, while the city of Mumbai is the most expensive amongst the top six cities within the country.
However, real estate experts believe that the prices within the city are fairly reasonable, on the basis of the huge demand for residential units has been sustaining since the past five years. Stepping into the IT and ITeS industry bequeathed Hyderabad to develop into a regional epicenter for the citizens of the state of Andhra Pradesh, who regularly migrate to the city seeking employment opportunities.
Additionally, the president of CREDAI – C. Shekhar Reddy, believes that property prices are far lower than any other city, as far as Hyderabad is concerned. Comparing the core areas of Hyderabad and Chennai, it can easily be deduced that there is a significant difference within the prices and that the city of Chennai is comparatively much more expensive.
Realty experts also believe that the increment in the cost of raw materials to has been a factor behind the increase of residential properties. Another factor responsible for driving up the costs is that the number of units available for the normal buyer is on the lower side.
However, on the flip side few builders have not seen an easy translation of their projects from completion to sale, as buyers face difficulty in procuring properties at the current rates. The city’s employment outlook has also been in slump since a while and in turn has become yet another factor affecting the realty prices. Significant employment rates act as harbingers for the realty market as the eligibility including that for loans and purchasing power of the consumers increases.
Below are general comparative and indicative prices of areas located along the ORR of the respective cities:
| Hyderabad ORR | ||
| Locality Name | Prices per square feet | 2BHK Rental Values |
| Shamshabad | 1900 – 2300 | 5000 – 7000 |
| Narsingi | 2600 – 3300 | 6000 – 9000 |
| Gachibowli | 3000 – 4000 | 10000 – 12000 |
| Kokapet | 2400 – 2750 | 6000-8000 |
| Bangalore ORR | ||
| Locality Name | Prices per square feet | 2BHK Rental Values |
| Marathalli | 4000 – 5000 | 12000 – 14000 |
| Bilekhalli | 2800 – 3600 | 11000 – 14000 |
| Hebbal | 5500 – 7500 | 13000 – 17000 |
| Vijaynagar | 3500 – 4000 | 10000 – 13000 |
*The above prices are based depending on the location, builder and property specifications and sizes.
**The distance from the center of the city, of Hyderabad’s ORR is significantly more than that of Bangalore’s ORR.
