Now that the Bill to bifurcate and create a separate Telangana out of Andhra Pradesh has been passed, the realty market is expected to finally pick up. Since 2007, Hyderabad property market has not witnessed any appreciation worth noticing. In fact, at present, it is the cheapest of the top Indian cities to buy a house. But this bifurcation and creation of Telangana is expected to open a whole new chapter for city’s real estate.
In the third quarter of 2013, the Housing Sentiment Index (HSI) got a raise from 10% to 22%; the increase in the sentimental index clearly indicates that an average buyer’s mood is positive and that the prices of properties in Hyderabad are slated to perform better in the coming period. The city scored a decent 101 as HSI, which is a value slightly above the neutral; there is optimism that the real estate prices will definitely rise. The year 2013 witnessed a fall of 4% in sales of properties in the city; but in 2014, the sales volume are also expected to increase.
Real estate in Hyderabad suffered on account of bad economic phase that Indian economy went through. The dollar became mightier against rupee and this has negative impact on city’s economy. High interest rates and inflation too proved dampening factors of city’s property market. In spite of the long down phase that it underwent, the city’s performance remained better than other tier-1 cities like Delhi, Gurgaon, and Pune. Its stronghold over IT/ITeS sector played a vital role in keeping the realty market’s head above water. Though the number of new projects launched in the city dipped, this helped in maintaining the demand-supply ratio to a stable value.
According to CREDAI (Confederation of Real Estate Developers Association), Hyderabad, in spite of all the odds that it is facing, shall rise and grow in the coming years. Credai has projected a positive growth rate for the city. The strong presence of IT sector, excellent infrastructural facilities, good manpower, and improved connectivity have gone very well with city.
The low realty prices make Hyderabad a buyer-friendly market. From the view of investment too, the city is a safe option. After the division, the speculations of price rise in coastal parts of Andhra Pradesh have started ringing the circuit. It is the prediction for good futuristic development that investors from country and outside seem to roll out their money here. In spite of all the positive predictions, the actual performance of city’s real estate is still to be seen.