Second hand homes in demand
Industry insiders peg the jump to anywhere between 15% and 20%, and attribute the trend to the poor availability of "quality products" in Hyderabad at present
Dec 05, 2014
Source : The Times of India

 

HYDERABAD: The sluggish movement of the real estate market notwithstanding, the sale of 'second hand homes' in the city has seen an impressive growth over the past few months.

Industry insiders peg the jump to anywhere between 15% and 20%, and attribute the trend to the poor availability of "quality products" in Hyderabad at present.

According to them, this northward movement is likely to continue until "fresh stocks" hit the real estate market, probably by the third quarter (around Diwali) of the next financial year.

While the demand for resale properties is predictably the highest along the city's western corridor that houses the IT industry - stretching along Hi-Tech-Madhapur-Gachibowli - stray sales have been reported from other pockets of Hyderabad, too. "Within the core city limits, for instance, there are houses that are in huge demand for two reasons: the location and the lack of space for new projects to come up," said Murali Krishna, a real estate agent, who has sealed multiple resale deals of late.

As per rough estimates, the average rate of these properties range from Rs 4,700 to Rs 5,500 per square feet (sft).

"This trend is only natural given the prevailing condition of the sector in Hyderabad. In the absence of new projects being floated, buyers have limited options to choose from. They are, thus, turning to resale homes, especially those located within gated communities," said AS Sivaramakrishnan, head (residential services) of CBRE South Asia Pvt Ltd, an international real estate services firm. While he maintained that the sale of second-hand homes is usually a continuous process, he confirmed to a visible increase he was witnessing in business in the last couple of months.

Seconding the observation, managing director, JLL (Hyderabad), Sandip Patnaik, further elaborated: "Due to the slowdown that the local market has suffered, customers are no longer confident of investing in projects that are in the initial stages of construction. It is either ready-to-occupy units or resale homes in good condition, which are doing well now. As the former is scarce, the latter is doing well."

He also pointed out how such deals are profitable, both for the buyer and the seller. "A property in Hi-Tech City that a customer bought for Rs 3,500 per sft about 3-4 years ago, for instance, is now priced at Rs 5,500 per sft and upwards. While that's a decent rise for the seller; for the buyer too it is fair deal given the project is complete and ready to move in immediately. There is no burden of paying EMI and rent at the same time, as would be the case if he signed up for an under-construction venture," Patnaik observed.

Latest Realty News

Include Pune in smart cities' list: PMC
Dec 05, 2014
PUNE: The Pune Municipal Corporation (PMC) has urged the Union government to include Pune in the list of 100 smart cities
Realtors want road width norm eased
Dec 05, 2014
PATNA: Realtors in Bihar have expressed reservation about certain provisions in the newly framed building bylaws such as, availability of 40-feet wide road in the city for the construction of apartments of 24 metres height
Every inch of land in Hyderabad must have title: KCR
Dec 05, 2014
Hyderabad: Cracking the whip on land encroachers in Hyderabad, Chief Minister K. Chandrasekhar Rao has asked officials to ensure that every inch of land in the capital had ownership title
HC glare on builders
Dec 05, 2014
Ranchi: Jharkhand High Court has directed the CBI to hand over documents pertaining to illegal constructions and misuse of basements in the state capital to a special committee constituted by the state government
Essel group to develop smart cities in Bengal
Dec 05, 2014
Kolkata: After Madhya Pradesh, Essel group plans to develop smart cities in West Bengal in collaboration with the state and central government
Patel Engineering sells Mumbai land for Rs 300 crore
Dec 05, 2014
NEW DELHI: Patel Engineering has sold a 4-acre plot in Mumbai's central business district, Bandra Kurla Complex, for about Rs 300 crore
Ashiana Housing forays into Chennai market
Dec 05, 2014
MUMBAI: Ashiana Housing will mark its entry into the Chennai's realty space by launching residential projects, one of them targeted at senior citizens
Exclusive gated community of villas launched in Coimbatore
Dec 05, 2014
COIMBATORE: Casa Grande Pvt. Ltd., Chennai's leading villa developer, has forayed into this textile city, with its exclusive gated community of villas and apartments
PE Funds to put Rs 450 crore into Lotus Greens’ Noida project
Dec 05, 2014
NEW DELHI: Private equity funds Clearwater Capital and SSG Capital Management are investing Rs 450 crore in the sports city township of Noida-based builder Lotus Greens
Sebi bars Greenworld Agro Industries Ltd, Mass Infra Realty Ltd from raising public funds
Dec 05, 2014
MUMBAI: Sebi restrained Greenworld Agro Industries Ltd and Mass Infra Realty Ltd from mobilising funds from investors

Latest Realty News Of State

Realty Talk's