Safe to buy an INR 1 crore flat in Hyderabad, or will prices drop?
The housing market indicators do NOT suggest that the residential property prices would come down in the future in Hyderabad.
Two basic reasons for this are that the cost of construction, as well as the cost of land in Hyderabad, continue to appreciate despite the pandemic. Additionally, the overall sentiment is now upbeat with the COVID vaccinations happening at an ever-increasing pace in Telangana.
So, a home buyer need not hesitate while booking a 1 crore apartment in Hyderabad!
To understand this better, let us explore residential real-estate trends at both country-level as well as specific to Hyderabad, Telangana.
1. Residential real estate trends across India
Contrary to the popular belief of the property market in India crashing due to multiple waves of the pandemic, the property rates in most Indian cities increased during July-September 2021.
Overall trends indicate prices of homes won’t go down across India, including Hyderabad
- Housing affordability in India has improved post-pandemic in March 2020
- Properties in India are at the most affordable levels currently
- Housing loans are low and available at 6% to 7% from financial institutions
- Reductions in ‘circle rates’ also makes this the best time to buy properties (Circle rate: ‘the minimum rate below which a property cannot be purchased’)
- Stamp duty charges are also low (Stamp duty: tax paid to the state to get the property title registered)
- Plus, the rates of construction materials have gone up with labour shortages across the country
As per the realtors body Confederation of Real Estate Developers’ Association of India (CREDAI) says-
- “Housing prices are likely to rise in the medium to long term as construction cost has gone up by 10-20% due to a sharp increase in prices of cement and steel.”
- Iron prices have increased by Rs 20,000 per tonne- a 50% increase
- Copper and aluminium prices have also increased
- A gradual rise in property prices in the coming months and 2022 is likely
- With lockdown restrictions lifted, we are witnessing a gradual rise in property prices
- More corrections in prices by the end of 2021 are happening with healthcare and COVID vaccinations happening at a fast pace in India
2. Residential real estate trends in Hyderabad, Telangana
- Increase in rates of raw material and construction costs will push up property prices in Hyderabad
- Prices of essential raw materials like steel bars, cement, plastic, man-made polymers and resins, etc., have caused builders to hike prices of new projects in Hyderabad
- Being a multi-locational market, Hyderabad home buyers have a varying home budget. From budget homes to high-end luxury homes, Hyderabad has it all
- Demand exists for different sizes of homes in Hyderabad. 1200 sq. ft. homes to 4000+ sft
- The latest trends indicate the queries for 3 BHK almost doubling for want of more space, and efficient-designs by the general home buyer in Hyderabad
- Housing markets of Hyderabad saw a 5% annual appreciation in prices
- As of now many builders are offering discounts on property purchases, making it the perfect time for investment in a dream home in Hyderabad
- Areas away from Hyderabad IT hub like Kompally, Sainikpuri, Yapral, Alwal are also being preferred by home buyers as they get more space for the same money, and that too in clean and green environs!
The above factors give a clear picture of residential property markets in Hyderabad. Hence, while any sharp increase in prices is unlikely, property prices might continue to maintain the same level, or increase marginally by the mid of 2022 in Hyderabad.
Hyderabad property market remains vibrant, and one can safely buy a Rs 1 crore property without worrying about the possibility of prices falling.
The overall sentiment is vibrant in Hyderabad, and an investment in a property would be a good decision, both financially as well as emotionally!
To know more about “Buying a 3 BHK flat in Hyderabad? Get the most out of your home!” Click here