02/03/2017
Hyderabad's affordable realty market offers many choices
With the assurance from the government and several other internal factors, the dream of owning a house in the city is being made more affordable than ever.
India is seen as an engine of global growth and has witnessed historic reforms in the last one year mentions Arun Jaitley, Finance Minister. Realty-wise, the sector did see some prominent housing announcements Affordable Housing, last year. Homes priced below Rs 50 lakh saw a marginal increase in supply. To further boost this segment, the Union Budget 2017 gave infra status to Affordable Housing. These developments clearly indicate that the government is serious about their 'Housing for All by 2022' goal.
Apart from the Infra status, the Union Budget 2017 also announced that going forward units with carpet area of 30 and 60 sq meters and not built up area of 30 and 60 sq meters will be applicable for affordable housing.
Translating in simple words, the size of affordable houses will be bigger. Home buyers within Rs 50 lakh budget now can own more space.
A price conservative market
Both consumer demand and residential inventory of units under Rs 5,000 per sq ft price category is high in Hyderabad. The lower budget segments of below Rs 3,000 per sq ft and the Rs 3,000-4,000 per sq ft cumulatively accounts for 51% share of supply in the secondary market. This also constitutes around 77 percent of consumer preference.
This makes Hyderabad the most price conservative market amongst the major cities of South India.
The mid budget segment (Rs 4,0005,000 per sq ft) is the second largest segment by supply but its share of consumer preference is around 14 percent.
The market movement is governed by price and transaction dynamics in the lower budget segments.
Destinations to look at
North Hyderabad has bulk of properties in the below Rs 4,000 per sq ft budget.
Analysis of budget-wise distribution of properties within a zone shows that properties in the West zone are pre dominantly in the Rs 4,000-5,000 per sq ft budget segment (23%) while the Rs 3,000-4,000 per sq ft segment comes second with 14 percent share.
In the North zone, having high consumer preference localities like Kukatpally and Miyapur, the lower budget segments of below Rs 3,000 per sq ft and the Rs 3,0004,000 per sq ft price brackets form the dominant supply.
Making a profitable investment
The high demand segments of less than Rs 3,000 per sq ft and Rs 3,000-4,000 per sq ft saw an average price change of 0.1 percent and 2.6 percent, respectively. Price movement across all the budget segments have been positive, except the Rs 4,000-5,000 per sq ft segment which saw a fall in prices by -1.0 percent.
Properties in the Rs 4,000-5,000 per sq ft in four areas have been highly preferred by consumers. The names of these localities along with percentage change are: Only one locality showed a drop in prices in all segments. If your need is not immediate, then look at localities which show price rise in under-construction and ready-to-move-in units. If the requirement is dire, then Chandanagar and Gachibowli can be given a miss.
Times Property, The Times of India, Hyderabad
