HYDERABAD: The Hyderabad valuations index rose by 3 per cent in the last quarter. Since values are low, there is an increasing number of people upgrading to premium living which has now come within their budgets. As a result, there is robust demand for luxury properties in the Rs 40-80 lakh category. The in-demand configuration too is 2 and 3-BHK units. The 4-BHK configuration were less in demand and therefore oversupplied.
Localities close to business districts such as Gachibowli are doing well from the sale and rental perspective. Convenience of living is also a factor. For instance, localities that open on to very busy roads such as the ORR are not performing so well as there is plenty of options available in all areas.
However, the consistent demand has also led to 5 per cent rise in values across almost 77 per cent localities. Premium properties in Banjara and Jubilee Hills as well as parts of Madhapur posted the maximum rise in rental values. Affordable properties close to IT hubs registered a small rise in values. This has also translated into a growing yield from residential real estate investment.
The Telangana concerns have restrained the Hyderabad property market in the past. However, good job prospects and the fact that the city will continue as a joint capital for Andhra Pradesh and Telangana for at least 10 years has impacted the consumer sentiment positively. As a result searches and transactions are both in good volume and have impacted the values positively.
At an average of Rs 2,200 per sq ft, it is the least expensive large real estate market in the country. West and East Hyderabad were the most active property markets with both demand and supply concentrated there, thanks to robust economic hubs. Central Hyderabad remained depressed and had minimum real estate activity with little scope for development.