HYDERABAD: In a clear indication that property prices in the city are going up slowly, an insight report by property portal, 99acres, reveals. While the city recorded a rise of 2 pc in per sq ft values quarter on quarter, the annual comparison (Oct-Dec 2014 and Oct-Dec 2013) reflected a 5 pc drop in prices.
According to the report, the rental values in the last one year have seen an average growth of 8 per cent. Mid-sized homes configured as 2 and 3 BHK units were the most popular in the city. In what is observed as a boost to the industry, the total number of properties available for sale went up by 71 pc in the current quarter.
“After 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 metro rail, the market is expected to improve further,” says Narasimha Jayakumar, chief business officer of 99acres.com.
As far as residential apartments are concerned, lying at the convenient distance from the IT corridors Gachibowli and Hitec City, localities like Kukatpally, Manikonda and Miyapur are among the top choices accounting for 9 pc to 11 pc hike. Madhapur and Pragati Nagar have recorded a growth of 4 pc to 5 pc in this quarter.
On the other hand, the report notes that areas like Dilsukhnagar, Bachupally and Lal Bahadur Nagar witnessed maximum drop in property prices (8 pc to 11 pc) in Oct-Dec.
In what comes as a little concern to realtors, the oversupply of housing units has dampened the residential market in Gachibowli as well. The locality has recorded a consistent drop 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 home buyers.
With several similarly priced dwellings abounding in localities in the west, the southern part of Hyderabad has received a lower demand. Therefore, Attapur, a well-connected area in the south, has received a reduced buyer interest and a consequent slight dip in property prices.
There’s good news to realtors as far as supply is concerned. While apartments were the most supplied and constituted majority (62 pc) of the total market, independent houses/villas were the next most supplied and made up 32 pc of the market share.