Buying a home has become a luxury in Hyderabad

Hyderabad: Earlier, whenever two people from different parts of the country met in Hyderabad, they used to discuss Hyderabadi biryani, but now it is more about real estate prices and housing deals. In India, buyinga property is a big decision and owninga house has been one of the strongest desires of life.

In the past few years, Hyderabad has been witnessing a rapid rise in property prices and construction activities are going on round the clock in every location.

Real estate pricesin Banjara Hills saw an appreciation of more than 1,000 times in 40 years from Rs 50 per sqyard in 1980 to about Rs 5 lakh per sqyard now.With passage of time, the city became second most lucrative housing market in India, after Mumbai Metropolitan Region. Mint Livability Index shows that the southern metros like Hyderabad, Bengaluru and Chennai are much more liveable than northern cities such as Delhi, Kolkata and Mumbai.

Speaking to Bizz Buzzon the prices of houses and their affordability in Hyderabad, Ravi, an IT employee, residing in Gachibowli, says: "The real estate prices have skyrocketed in the areas near IT companies. It is only possible to buy a flat if disposable income is high or if there is a second source of income. If both wife and husband are working, then they may divert one's income to accommodate monthly EMIs. Buying a property in Hyderabad has become a luxury these days due to steep rise in prices."

Concurring with his views, Rajashekar, a public servant, residing in Vidyanagar, says, "in the areassocial infrastructure is well developed, it is very difficult to buy house even with a budget of Rs1 crore. Demand for houses is on the rise in north and eastern parts of Hyderabad due to saturation in western part of the city. The State government's GRID policy is encouraging the people to buy in north and eastern areas."

Sandeep, who operates a restaurant in RTC X Roads, says:"I have been waiting to buy a home for the past 15 years and I thought this is the right time as prices may go upfurther. Finally, I booked a flat in Uppalat a cost of Rs 58 lakhunderearly bird offer, paying partially from home loan and the rest by selling a property in my hometown. It would have cost a bomb if I did not buy in early bird offer."

Rajesh, who works in Bajaj Finserv, says: "The prices that are prevailing in the city are beyond my capacity where pandemic hit our incomes and I am not of any opinion to buy in near future unless Iget a hike in my disposable income."

A person, who already purchased a flat in Hyderabad in Dilsukhnagar said, "Almost half of my income goes to my home loan EMI and I should survive with remaining half which is even more difficult in this pandemic period."

According to PropTiger's independent real estate advisor survey, "Housing prices in Hyderabad jumped 7 per cent in the last quarter of 2021, where average per sft rate stood at Rs5,900-6,100. This price rise is attributed primarily to spike in the cost of construction material after Covid-19 outbreak in early 2020 owing to supply side constraints. However,housing sales rose by 36 per cent in the city with 22,239 units sold in 2021 against 16,400 units in the previous year".

Recent CII-Anarock surveyfor H2 2021 shows that 66 per cent of respondents in Hyderabad prefer apartments, 19 per cent prefer villas and 15 per cent prefer to invest in plots.About 56 per cent expect housing prices to rise in 2022 due to inflationary trends in construction raw materials and overall operational costs for developers and 32 per cent are expecting ready to move (RTM) houses.

About 5-8 per cent rise in real estate prices in 2022 will be another factor driving the overall demand for housing. Extra living space continues to be a major ask amid ongoing and resilient work from home (WFH) and e-schooling reality.

CII-Anarock surveysays that almost 45 per cent respondents are willing to buy a home in city peripheries while just 22 per cent prefer living within city limits, close to offices because future of work is tilting towards hybrid models and proximity to offices is no longer a significant concern. But this change may take time to happen in Hyderabad. Over 63 per cent respondents prefer mid and premium segment houses priced between Rs 45 lakh and Rs 1.5 crore.