Hyderabad: Most Affordable Realty Market in India
Bangalore: Hyderabad, the city of Pearls, has been one of the major hubs for IT/ITeS industry, and has observed massive growth in this sector over the past decade. The city’s real estate sector is gaining popularity and developers are launching increasing number of new residential projects under affordable housing option, which has made this city as one of the favorable realty destination in India.
According to a study conducted by Knight Frank, a global real estate consultancy, the real estate market of Hyderabad has become the most affordable one when compared to other metros and this current scenario is due to the launch of affordable housing projects which has grown rapidly after the economic slowdown in 2008, reports Times of India.
The city is witnessing demand for housing mainly because of the new GO 245 which is a relaxation of binding EWS/LIG housing norms and the proposed Hyderabad metro rail projects. “The market sentiment looks bullish for the forthcoming quarters. There has been an increase in demand in the last few months. The fact that the residential property in Hyderabad is relatively undervalued presents vast opportunity for end-users and investors alike,” said the Knight Frank report.
The reports also said that the affordable housing segment in the city had witnessed thrust after 2008 when the real estate sector has observed major price correction because of the slowdown in the IT/ITeS sector followed by political turmoil over Telangana. “As a result, the weighted average capital value of the residential properties in Hyderabad is estimated to be the lowest among the metro cities,” said the report.
Last year, during April-December, Hyderabad saw a good number of new project launches of around 8,500 units and around 65,000 residential units were under construction projects in areas like Gachibowli, Kukatpally, Kondapur, Madhapur and Raidurgam.
“Nearly 56 percent of the absorption till December 2012 has been within the 5 million (50 lakh) category, followed by 5-7.5 million with 32 percent. The clubbing together of these categories essentially denotes that the affordable and mid-end segment has been responsible for the absorption of a total 88 percent of the residential units booked or sold,” reports Times of India.
According to the report, majority of home buyers in Hyderabad is opting for smaller residential units since the global economic slowdown. Chalapathi Rao, vice-president, Andhra Pradesh Real Estate Developers Association (APREDA) said that “There has been a 15 percent rise in sales and we expect another 5-10 percent rise in 2013 as well.”