Press Release

Property Prices in Hyderabad record a marginal growth of 2% in Oct - Dec 2014over Jul-Sep 2014: Insite Report

February 16 2015

Major Highlights:

  • Gripped under political imbalances, Hyderabad has been through the slowest phase of real estate movement in the last few years. While the stability of the State Government has improved customer sentiments, sale volumes still haven&rsquot picked up pace in the city
  • After an insignificant in the Jul-Sep 2014 quarter, Hyderabad&rsquos market regained by two per cent in the Oct-Dec 2014 quarter, recording an overall stability
  • With the software industry concentrated in the West, maximum housing demand as well as supply was noted in this region
  • Western region localities such as Kukatpally, Manikonda and Miyapurrecorded maximum hike of nine to 11 per cent
  • Dilsukh Nagar remained the top non-performer of the citywith 11 per cent in property prices
  • Across all major cities, Hyderabad witnessed maximum supply of independent houses/villas

Hyderabad, 16 February, 2015: Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, Hyderabad has witnessed a marginal growth in property prices in Oct-Dec 2014 as compared to Jul-Sep 2014. While the city recorded a rise of two per cent in per sqft values quarter on quarter, the annual comparison (Oct-Dec 2014 and Oct-Dec 2013) reflected a five per cent in prices. The rental values in the last one year have seen an average growth of eight per cent. Mid-sized homes configured as 2 and 3BHK units were the most popular in the city. The total number of properties available for sale in the city went up by71 per cent in the current quarter.

Commenting on the report, Mr NarasimhaJayakumar, Chief Business Officer,,said, &ldquoAfter seeing an all-time low in the real estate market, Hyderabad has started picking up pace. The core areas witnessing maximum development are concentrated in the West, which is driven by the software industry. With the upcoming Hyderabad Metro, the market is expected to improve further.&rdquo
Price Analysis of Hyderabad(Oct-Dec 2014 vs. Jul-Sep 2014):
Residential Apartments:

  • Lying at the convenient distance from the IT corridors Gachibowli and HITEC City, localities like Kukatpally, Manikonda and Miyapur are among the top performers in the current quarter accounting for nine per cent to 11 per cent hike. Madhapur and Pragati Nagar have recorded a quarter-on-quarter growth of four per cent to five per centin this quarter.
  • Dilsukh Nagar, Bachupally and LalBahadur Nagar witnessed maximum in property prices (eight per cent to 11 per cent) in Oct-Dec 2014 due to the availability of surplus stock in the regions.
  • Oversupply of housing units dampened the residential market in Gachibowli as well. The locality recorded a consistent in property prices in the last six months
  • Affordable property prices in comparison to Kondapur, spilled housing demand to Chandanagar, especially from the middle income homebuyers who sought the best prices available in the market.
  • With several similarly priced localities available in the west, south Hyderabad recorded lower demand. Therefore, Attapur, a well-connected locality in the south, recorded reduced buyer interest and hence a slight dip in property prices.

Residential Land:

  • In terms of land prices, Warangal Highway, which majorly offers plotted developments, outperformed all other areas of the city.The upcoming Outer Ring Road, which was slated to be completed by end of 2014, has now been rescheduled for 2015 and has been acting as a major catalyst for land values here. The upcoming Multi-Modal Transport System (MMTS) is also expected to boost property prices in the area.
  • Kothur also recorded a considerable hike of 25 per cent in land values. Availability of Hyderabad Metropolitan Development Authority (HMDA) or Directorate of Town and Country Planning (DTCP) approved plots attracted several investors. Affordable prices were another reason why investors flocked to Kothur in large numbers. The area offers plotted developments within a price bracket of Rs 5-30 lakh.

Supply Analysis:

  • Availability of Different Types of Property- Supply of various property types such as apartments, builder floors and independent houses/ villas remained unchanged between the last and the current quarter. While apartments were the most supplied and constituted majority (62 per cent) of the total market, independent houses/villas were the next most supplied and made up 32 per centof the market share.

Across all major cities, Hyderabad witnessed maximum supply of independent houses/villas. Chennai was the closest to Hyderabad with 22 per cent supply for this property type.

  • Availability of Property in Different Budgets- The middle income housing segment of Rs 25-40 lakh saw maximum supply in the city, followed by high income housing segment (Rs 40-60 lakh) which made up a quarter of the total market share. At the same time, the affordable housing segment (Within Rs 25 lakh) recorded 18 per cent supply in this quarter.
  • Ready to Move vs. Under-construction- Overall, the city recorded an almost equal share of under construction and ready to move in units. Close to 48 per cent properties available for sale were under construction, with the rest (52per cent) being ready to move in.

The share of under construction properties went up by five per centin the luxury housing segment (Rs 60 lakh - Rs 1 crore). 

  • BHK-wise Distribution of Property- In terms of configurations, maximum supply was recorded for 2BHK and 3BHK units. Both the categories together made up almost 90 per cent of the total market share, with almost equal supply of each. Smaller homes of 1BHK configuration were the least offered in the city and were mostly available in ready to move in state.


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