HYDERABAD: The launch of Andhra Pradesh capital city project, Amaravati, will be a blessing in disguise for the Hyderabad real estate and construction sector, making homes here affordable for a large section of middle-class home buyers, builders and developers here think.
“There is a talk going on in investors and builders circles about the effect of AP capital on Hyderabad. There is no doubt that people from AP and residing right now in Hyderabad and some builders are in a ‘wait and watch’ mode in deciding where to buy their next property or launch their venture,” says Builders Association of India’s Telangana chapter president N Nagesh Reddy.
While this ‘wait’ may continue for some more months, many builders here are of the view that Amaravati will contribute to the growth of Hyderabad realty sector further.
“There is no doubt that over the next five or six years some people will migrate from Hyderabad. Already, home prices are low in Hyderabad and migration of some people from the city may stabilise the prices for some more years. But some think this situation will boost the Hyderabad real estate sector as low prices will push up the demand. A middle-class man, who could not afford a home earlier, can afford a home in Hyderabad now,” says K Ravinder Reddy, chairman and managing director of Janapriya Engineers Syndicate.
Increase in affordability will further increase the demand, thus creating the demand for homes from a large segment of buyers. For builders, it is better to have a large number of home buyers who can pay less looking for a home than a small number of home buyers who can pay more, explains Ravinder Reddy.
Another reason for the builders’ confidence is Hyderaabd’s climatic conditions and cosmopolitan culture.
“Besides being a city with lowest home prices among all metros, Hyderabad also has better climate than Delhi, Mumbai and Chennai. One cannot get a land in Mumbai or Delhi at a price lower than Rs 8,000 per sq ft in Mumbai or Delhi whereas in Hyderabad it does not exceed Rs 6,000 per sq ft. Even in Vijayawada the land prices have become costlier than in Hyderabad, making them out of reach for middle-class home buyers and investors. All these factors make Hyderabad a safe bet for home buyers. People from other states too find it attractive and easier to settle down here,” claims K Gopala Krishna, treasurer of Telangana Real Estate Developers Association (TREDA) and director of Gowra Hallmark Townships.
When we examine the sales trends and figures of home sales in Hyderabad in the past three or four months, it is mostly the people from north India and non-Telugu states who are buying homes in Hyderabad, as top builders claim. According to the reports of TREDA, more than 80 per cent of the homes in the booming western Hyderabad region were bought by IT employees hailing from other parts of the country.
With industry experts forecasting that the prices will remain affordable for some more time, it is time to cheer for home buyers.
- Bifurcation not to impact sales much as north Indians form the bulk of home buyers.
- Pleasant climate and cosmopolitan culture are the city’s big advantages apart from prices.
- Land prices in Hyderabad are lower than those in Vijayawada.
- Home prices to remain more or less the same for some more time.
- Homes are affordable for middle-class buyers in Hyderabad now.