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Finance > Real Estate > Hyderabad: Property Demand Likely to Shift to City Suburbs
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Article rating : 0.00, 0 votes. Author : George Gonigal
The advent of global companies to Hyderabad has impacted the property values. Their arrival of MNCs, IT giants and other big companies in Hyderabad has spurred the latent demand for high-end and luxury properties. The professionals employed with these companies have high salaries hence they prefer fully furnished, lifestyle homes instead of the regular MIG, affordable housing.
New developments like the coming of Shamshabad airport and widening of the Outer Ring Road (ORR) have also fuelled the demand for land in and around these areas. Property prices in areas like Gachibowli have also increased. Land prices have already touched Rs 12,000 per sq yd in adjoining areas where Infosys and Microsoft have their campuses. Many NRI investors are buying land banks here for investment purpose.
However, the latest property trends indicate that Hyderabad’s real estate market may be heading for a slowdown phase. Over-supply, especially in the
luxury housing segment, and high rentals are causing this retardation in the segment’s growth. High home loans interest and high property values - which in turn translate to high Equated Monthly Installments (EMIs) - are making it difficult for a common man to buy house in Hyderabad. Event the short-term real estate investors are not finding this market lucrative. It is only the serious end-user who is driving the market.
Real estate analysts say this will be a temporary phase. The highlight of the property investors and buyers will shift to the city’s suburban areas where housing is still affordable. Localities like Kukatpalli, Kompalli, Medchel and Shamshabad are poised to take advantage of this hypothetical slow down. Huge land banks are available here by scores and the property rates are still competitively lower. Hence, this phase of stabilisation will also spur some growth in the city.
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