After the much talked about Telangana Bill was given green signal recently, the speculations about Hyderabad’s realty market have again started making rounds. Though the high uncertainty prevailing before T-Bill got nod has almost withered away, buyers are still trying to get the clarified picture. If the market predictions are to be believed, the city is all set to bounce back with better stronghold over real estate. A point that can be cited in its support is the improved Housing Sentiment Index(HSI) that stood at an impressive 101. The HSI above 100 is an indication of the positive sentiments of buyers into making a purchase, and for Hyderabad, the value speaks for itself.
The HSI is an index that intends to capture buyers’ mood; in the last quarter of 2013, i.e. Oct-Dec, the value for Hyderabad real estate witnessed an increase of 22%, as compared to the previous quarter. IT shows that sentiments are largely running positive for city, especially in South Hyderabad, where HSI value scaled up by 24% in the above-said period. According to Andhra Pradesh’s IT Minister Mr. Pounala Lakshmaiah, the city is expected to perform well in real estate market, in the months to come. As the Bill has come into action only recently, buyers of Hyderabad properties may show an initial reluctance for 6-8 months before after they gain full confidence.
At present the apartments in Hyderabad are largely undervalued, if compared to other metros. For instance, the realty values stand at 60% of what they are in Chennai. As the political picture has started leaving its haziness behind, the real estate prices are expected to rise in near future. According to Managing Director of Jones Lang Lasalle, Hyderabad, Sandeep Patnaik, the prices can escalate by 15-20% in 2014.
The optimism for properties in Hyderabad derives from the fact that the city has excellent physical as well as social infrastructure. Strong presence of IT/ITeS sector has kept the confidence of investors intact over year. Despite the Telangana turmoil, high-end stakeholders have kept faith in its realty market. It is because of this software industry that the outside investors have not changed their market preferences.
For end-users, city offers several cost-effective options. Localities such as Gachibowli, Beeramguda, Uppal Mandal, ECIL, Pocharam, Mowlalai, and Miyapur offer affordable residential houses. Similarly, Manikonda, Kukatpally, Komaplly, and Malakajgiri carry reasonable housing rates. The rates are a bit higher in Chanda Nagar, Hi-Tech City, and Kondapur.