|Hyderabad Property Market Still Not Reviving From a Trough|
|By 99acres Media|
|Total View : 4641|
Hyderabad’s real estate market had witnessed an unparallel growth in April 2009, psf rates being INR 3,000. And then slowly, it headed towards a comparative slowdown beginning July and October. Experts say that the growth rate of property values slowed down while the prices were steady since there was no revival for the market. Even by July 2010 the real estate market was in doldrums.
According to Shaliendra Singh, Director Goodwill Coordinators, Hyderabad, “Some developers in Hyderabad were even offering huge discounts to sell off their ready units during the bad phase of July 2009 to July 2010”, he adds that the reduced prices of properties in Hyderabad will push up sales. According to him, “One of the major reasons for people being cautious of investing in property is the Telangana issue”.
At present, property rates in the city vary between INR 2,000 per sq ft to INR 2,300 per square feet (psf). The comparative capital rates of April 2009 and April 2010 were INR 3,000 psf and INR 2,000 psf respectively. From July 2009 to October 2010, the residential property transactions had practically come to a standstill and rates were stable, around INR 2,000 to INR 2,200 psf. Though some of the key market players in Hyderabad had predicted that the real estate market will recover by October 2010, it seems doubtful.
Capital value of Amerpet was INR 3,600 psf in April 2009 which fell to INR 3,000 psf in October 2010. In Banjara Hills, the psf rates went from INR 4,600 to INR 3,900 for the same period. Another example of the declining capital rates in Hyderabad is the locality of Gachiboli, where the rates in 2009 April were INR 3,000 per sq ft and in October 2010 came down to INR 1,800 per sq ft.
Even in difficult market conditions, builders in Hyderabad launched new projects in July 2010 and 2011; few projects launched include SMR Fountainhead in JNTU, Kukatpally, Richmond Villas in Bandlaguda APPA Junction, Quiescent Heights in Madhapur, Aparna Sarovar in Gachibowli and many more. According to Sreedhar, Proprietor of Lanar Realtors, Hyderabad, “Around 130 new projects have been launched in the city and developers are investing in many high-priced properties in Hyderabad. This will lead to higher supply in December as 2010 compared to July”, he said.
Hyderabad Price Index
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