Hyderabad: Hyderabad is seeing several luxury housing projects, yet the city is still in the affordable price bracket. While cities such as Delhi, Mumbai and Bengaluru appear among the global top 45 cities with luxury residential prices seeing hike, Hyderabad is seen among the affordable cities, keeping it outside of this 45-global cities’ index.
As per the latest Knight Frank Prime Global Cities Index, Delhi is ranked at seventh position globally, with prime property price growing by 5.8 per cent on a yearly basis and 4.4 per cent on a quarterly basis ending first quarter (January-March) of 2019. Bengaluru witnessed a growth of 2 per cent on 12-month and 0.8 per cent on three-month basis, standing at the 20th position on the Index. At 31st position, Mumbai registered growth by 0.6 per cent on 12 month and 0.3 per cent on three-month basis, indicating a momentum in the affordable and mid-segment housing category.
Primary carpet price in Delhi stands at around Rs 50,000 – Rs 85,000 per sq ft and in Bengaluru at Rs 32,000- 65,000 per sq ft.
As luxury housing is affordable in Hyderabad compared to other top metros, there is certainly growing demand in terms of such housing in micro markets such as the Kokapet-Narsingi-Gandipet belt, which is in the thick of action with carpet price estimated between Rs 8,000 and 16,000 per sq ft. While this area is now dominated by luxury high rise projects, not so long ago this belt was dominated by villas which were in great demand by the uber rich class typically from around Banjara Hills and Jubilee Hills. Proximity of this belt to Gachibowli and HITEC City adds to the attraction.
Apart from these locations, Banjara Hills and Jubilee Hills also have inventory of luxury residential real estate but due to low vacancy in these micro-markets for such assets, hardly any properties are available. Each of these city markets has unique market dynamics that determine the trajectory of its luxury properties.
Attractive prices lure 61% Hyderabad homebuyers
Lower property prices are attracting investors in Hyderabad real estate, with over 61 per cent buyers surveyed in the city by Anarock Consultants, confirming that the prices influenced their buying. This also coincides with the fact that at an average Rs 4,170 per sq ft, Hyderabad’s property prices are the lowest among the top seven Indian cities. This, despite the fact that Hyderabad also takes the third spot among the top cities in average property price appreciation over the last five years – at nearly 15 per cent.
Santhosh Kumar, vice chairman – Anarock Property Consultants says, “Attractive pricing, sound social and physical infrastructure development and increased office leasing activity have made Hyderabad one of the most active real estate markets in the country in recent times. Supportive government policies and political stability post state bifurcation have also changed the fortunes of the city’s real estate market over the years.”
“If we consider sales data in the city, the top three micro markets with maximum housing sales between Q2 2018 – Q1 2019 were Pocharam, Bachupally and Kondapur respectively. Interestingly, the average prices in the top two markets were between Rs 2,550 to Rs 4,000 per sq. ft. Affordable markets with realistic pricing are high in demand in Hyderabad.”