Hyderabad sees marginal growth
Published on March 11, 2015 05:30:30 AM
Hyderabad has witnessed a marginal growth in property prices in Oct-Dec 2014 as compared to Jul-Sep 2014 as per 99acres.com Insite, a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. After an insignificant drop in the Jul-Sep 2014 quarter, Hyderabad’s market regained in the Oct-Dec 2014 quarter, recording an overall stability.
According to the report, the city recorded a rise of 2 per cent in per sq ft values quarter on quarter, while the annual comparison (Oct-Dec 2014 and Oct-Dec 2013) reflected a 5 per cent drop in prices.
The rental values in the last one year have seen an average growth of 8 per cent. Mid-sized homes (2/3BHK units) were the most popular in the city. The total number of properties available for sale in the city went up by 71 per cent in the current quarter. Narasimha Jayakumar, chief business officer, 99acres.com, said, "After seeing an all-time low in the real estate market, Hyderabad has started picking up pace. The core areas witnessing maximum development are concentrated in the West, which is driven by the software industry.
With the upcoming Hyderabad Metro, the market is expected to improve further.” "Gripped under political imbalances, Hyderabad has been through the slowest phase of real estate movement in the last few years. While the stability of the State government has improved customer sentiments, sale volumes still haven’t picked up pace in the city,” he added. Across all major cities, Hyderabad witnessed maximum supply of independent houses/villas. Chennai was the closest to Hyderabad with 22 per cent supply for this property type.
The middle income housing segment (`25-40 lakh) saw maximum supply in the city, followed by high income housing segment (`40-60 lakh) which made up a quarter of the total market share. At the same time, the affordable housing segment (within `25 lakh) recorded 18 per cent supply in this quarter. Lying at the convenient distance from the IT corridors Gachibowli and Hitec City, localities like Kukatpally, Manikonda and Miyapur are among the top performers in the current quarter accounting for 9-11 per cent hike.
Madhapur and Pragati Nagar have recorded 4-5 per cent growth in this quarter, while Dilsukh Nagar, Bachupally and Lal Bahadur Nagar witnessed maximum drop in property prices (8-11 per cent) in Oct-Dec 2014 due to the availability of surplus stock in the regions. In terms of land prices, Warangal Highway, which majorly offers plotted developments, outperformed all other areas of the city. The upcoming ORR, which was slated to be completed by end of 2014, has now been rescheduled for 2015 and has been acting as a major catalyst for land values here. The upcoming MMTS is also expected to boost property prices in the area. Kothur also recorded a considerable hike of 25 per cent in land values.