Author - Sumita Roy
‘Value for money’ in Hyderabad signifies the trend of home buying set in close proximity to offices. In other real estate markets like NCR, Delhi, Mumbai,where people are now looking for homes in the peripheral colonies and townships, in Hyderabad the scenario is different.
In this city, spacious and affordable homes are still available within walkable distance from business destinations and commercial spaces. Home buyers are economically satisfied that the homes that they are presently investing on will evidence greater appraisal in the next few years. And also that these spaces are convenient from the perspective of daily transportation.
Many home buyers are asking for homes that are in close proximity to IT parks like Hitec City and Madhapur. Localities that come under the IT Hyderabad belt are: Madhapur, Gachibowli, Miyapur, Hitec City and Kukatpally.
As per the price trends in these regions the value of per square feet of apartments in Hitec City range from Rs. 4000 to 5000; apartments in Gachibowli have the per square feet of Rs. 3500 to 4600; the apartments in Miyapur range from Rs. 2700 to 3300; and in Madhapur the same ranges from Rs. 4300 to 5500.
These regions have witnessed a maximum demand for homes that have value spanning within Rs. 20 Lakhs to Rs. 60 Lakhs. And most of these homes are 2 BHK and 3 BHK apartments. This is in sharp contrast to Delhi NCR and Mumbai property market, in which people are seeking to buy 1 BHK/ studio apartments within the city due to escalated propriety prices.
As per HDFC Realty Private Limited’s Krishnaveni K, “For the last one year West Hyderabad localities such as Madhapur, Miyapur, Gachibowli and Hitec City have seen some transactions. Though capital values have not increased significantly, these areas have garnered regular rental income. These markets are also safest for investment”.
Manesh Gupta , Director of Advisory and Valuation Services, Collier’s International, further adds, “The IT crowd that buys in Hitec City and nearby areas are buying in the budget of Rs 20-60 lakh. For them, Hyderabad is affordable when compared to other metro cities of India. They know that the large house they can afford here in a certain budget is not possible in other cities without compromising on location.”
Krishnaveni also said that in the last year many North Indians have bought properties in Hyderabad, more specifically in the western parts of the city where the price of properties are lower than the rest. Places in the peripheral regions like Nizampet, Kompally, Mokila, Shamirpet, and Shamshabad are also offering great residential options within the budget range of Rs. 20 to 60 Lakhs.
The average per square feet range in these areas is Rs. 500 to 1000, even lesser in Western parts of Hyderabad. However, these are yet lacking in the ‘value for money’ category due to poor infrastructure and convenience.
A Hyderabad based real estate agent says, “Several projects are coming up in the outskirts of the city at affordable prices. While the amenities remain the same, infrastructure such as fire station, police station, street lights, internal roads, grocery store and all other basic needs are not yet available. In addition, they are far from their offices….Since prices are not very high in the city centre, so why will a buyer opt for property in far off areas? Prices in the city were not out of reach for buyers, though the bifurcation did impact the market and buyers just held on to their money. This doesn’t mean they can’t spend.”
It is not just the infrastructure factor that is hampering growth in this region. Several other factors such as water supply, power cuts, etc. are more blatant and troubling in comparison to the rest of the city that is under Greater Hyderabad Municipal Corporation limits (GHMC).