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Stability, growth prospects, quality of life fuel price rally
Even as major markets in India are currently undergoing price correction as pressure on developers mounts to reduce rates amid low sales volumes and high inventory levels, apartment values in Hyderabad
Hyderabad: Even as major markets in India are currently undergoing price correction as pressure on developers mounts to reduce rates amid low sales volumes and high inventory levels, apartment values in Hyderabad are seen to be appreciating, primarily because of positive investor sentiment with regard to this promising residential real estate market.
Highest price rise
Data available with PropTiger.com, owned by Elara Technologies, that also owns Housing.com and Makaan.com, shows that property values, in what is often referred to as India's pharmaceutical capital, increased by 15 per cent YoY in the July-September quarter (Q2) of the current fiscal (FY20), at a time when most other markets showed insignificant price movement. The Y-o-Y price has moved up from Rs 3,587 per square foot in September 2014 to Rs 5,224 in September 2019.
"Average property values in Hyderabad have increased by over 45 per cent when compared to the levels witnessed in 2014.
While Hyderabad's prospects as a residential market have been improving after the bifurcation of Andhra Pradesh in 2014, investor-buyer sentiment for this market has also been positive because of the global recognition the city has received in terms of providing a high quality of life for the fifth year in a row. Hyderabad was ranked as the top city in Mercer's Quality of Life Survey, 2019.
Infrastructure projects like the Hyderabad Metro Rail have further boosted the prospects of the city as a residential hub, where a wide range of options is available for buyers in affordable as well as luxury segments," says Dhruv Agarwala, Group CEO, Elara technologies.
With average property values currently standing at over Rs 5,200 per square foot (psf) as against Rs 3,587 psf in 2014, the Hyderabad housing market has become as expensive as Bangalore and Chennai over the years.
The City of Nizams was earlier considered an affordable alternative to the two prime markets in the south.
Lowest inventory overhang
On several other parameters too, Hyderabad real estate has been seen to perform better than its peers, not only in the south but across the country.
Data available with PropTiger.com shows that the city has the lowest inventory overhang among the nine prime residential markets in the country, at 13 months of current monthly sales velocity.
