The real estate market in India in 2014 is in its fourth phase where it is recovering from the economic slowdown. The demand is rising again and there is a variation in price trends of properties especially in the tier 1 cities. Let us sneak into the varying price trends of one of the tier 1 city of India, Hyderabad.
The tier 1 cities of India include the metropolis cities of Mumbai, Delhi, Hyderabad, Kolkata, Bangalore and Chennai. The real estate trends in these cities have been always on the note. There are numerous things that affect the realty market in India. From formation of new government to economic factors, everything has an effect on the property market; either positive or negative.
The price trends in a city vary with the performance of the economy and some local factors. Therefore, the price trends always are different for different cities in India even in the same economy.
Taking a Glimpse of the Real Estate Sector in India
The property market of India was fragmented and unorganized in the past but the recent developments have seen a much modern approach. The sector has seen a long way to become one of the fastest growing markets in the world. Rapid urbanization, rising income level and a large population contributes to the sector. The real estate sector in India can be divided into the following sectors:
The growing market is expected to touch US$180 billion by the year 2020. The major market players in the industry are DLF Limited, UNITECH, Ansal API, Sobha Developers and Parsvnath Developers Limited.
The realty market of Hyderabad has foreseen a prolonged slump since 2013 and has been recovering since then. The Western/North-Western Belt has shown increased demand and the city now has a firm grip on its real estate belt.
The capital and the largest city of the Indian state of Andhra Pradesh, Hyderabad occupies 650 square kilometers. Located on the banks of Musi River on the Deccan Plateau, the city is India’s fourth largest populated city and the sixth most populous urban cluster.
The Realty Market of Hyderabad
Prevailing political instability, Hyderabad which was in a slump during global recession has come up with a gradual phase of recovery. New launches by prominent builders have seen a good response along the IT/ITES corridor. The market is stable with the ready-to-move in stock witnessing an improved market and demand has gone up in the last two quarters especially. The market is expected to consolidate with a 5-7 % appreciation which is going to be backed up by good commercial infrastructure, the increasing presence of IT/ITES sector leading to increase in number of people shifting to Hyderabad.
With the supply still being greater than the demand, the prices remain under check.
What the Experts Say?
According to Knight Frank, the residential market of Hyderabad has remained still in 2013 with a slight drop. Though the residential sales saw a dip, Hyderabad did better than other tier 1 cities. 2013 saw a dip in new launches and therefore the sales of available inventory went up.
Prices of residential properties in Hyderabad have not seen a major shift past two years. This is because the inventories are more and demand comparatively remains less.
What are the Major Locations in Hyderabad?
The city of Hyderabad is divided into six distinct zones, namely the west Hyderabad, North-West Hyderabad, East Hyderabad, North/North-East Hyderabad, South Hyderabad and Central Business District Hyderabad. The districts are divided on the basis of location and the real estate activities within the region. The price trends in Hyderabad vary according to the demand and supply of the region.
The major locations of West Hyderabad where the real estate activities are trending are Gachibowli, APPA Junction, Kismatpur, Nanakramguda, Hyderguda, Tellapur, Kokapet and Gandipet. Among these Gachibowli has the maximum residential properties. The per square feet price in this region varies from Rs. 3400 per square feet to Rs. 4150 per square feet.
The major locations of the north-west Hyderabad are Madhapur, HITECH City, Kukatpally, Hydernagar, Chandannagar, and Miyapur. The price trends in this region have more or less remained same for past two years. The occurrence of various offices in this region has led to increase in the demand for residential properties in this area. The prince range varies between Rs 2800 per square feet to Rs 4450 per square feet.
Balanagar, Kompally, Sainikpuri, Sanatnagar, Alwal and Tirumulgherry form the North/North-East Hyderabad. The residential price trends in this area vary between Rs 2000 per square feet to Rs 4500 per square feet.
Himayath Nagar, Ghatkesar, Pocharam, Uppal, malkajgiri and Marredpalli are the localities that constitute the East Hyderabad. This region has an inherent end user segment with limited upcoming supply. The price band lies between Rs 2000 per square feet to Rs 6000 per square feet.
The major localities of south Hyderabad constitute Shadnagar, Rajendra Nagar, Khatedhan Industrial Area and Shamshabad. The apartments in this region come under the price band of Rs. 1500 per square feet to Rs 3200 per square feet. The region is affordable and many builders are constructing luxury apartments at affordable rates in the south Hyderabad district.
Central Business District
The central business district of Hyderabad has Banjara Hills, Panjagutta, Jubliee Hills, Begumpet, Necklace Road, Mehdipatnam, and Ameerpet as its major locations. The area has some of the most expensive residential societies with a price band that vary between Rs 4000 per square feet to Rs 10000 per square feet.
In the End
Out of all the locations, the city of Hyderabad has seven locations prime locations that have extensive demand for residential apartments. The prime locations on the basis of infrastructure, infrastructure development, residential cost and future employment prospects are:
- Jubliee Hills
Originally known as pearl and trading center, today has grown into an IT hub with a number of MNC’s moving into the city. There is hence a huge impact on the real estate market as the demand for residential apartments is going up.
To know more about Hyderabad Real Estate please visit http://www.99acres.com/Hyderabad-Real-Estate.htm