Understanding Last Year’s Transformation of Affordable Real Estate in Hyderabad

In terms of demand for new homes and supply of the same, real estate in Hyderabad outstrips real estate demand and supply in all other Indian cities.

What the Stats Say?

The total number of new launches in the city rose by approximately 43 percent according to a leading real estate consultancy. Last year 11,800 new units were launched in Hyderabad. Nearly sixty-seven percent of the new launches last year were built in the western region of Hyderabad. At the western region of Hyderabad are numerous employment zones such as Hi-Tech city, Madhopur, and Gachibowli the presence of which led to a demand for more residential housing in this quadrant of Hyderabad. Notably, the western region of Hyderabad is also well connected with the rest of Hyderabad.

Whom are Developers Building for?

builders and developers in Hyderabad are building in larger numbers for mid-level households as the demand for housing from this middle segment, many of whose members are employed in the IT-BPM sector, is high. Recently, such has been the demand for housing from this segment that launches of mid-level residential real estate in Hyderabad have increased three folds. Nearly 9,800 new apartments in Hyderabad were launched for the middle-income buyers. However, after demonetization, many builders in Hyderabad who had ongoing projects turned their attention to completing existing projects rather than building new ones.

Understanding the Financials

Last year, in the value housing or affordable housing segment the price of affordable housing rose by forty-one percent to 40 lakh rupees. The higher price charged by builders for housing in the affordable housing segment was largely due to larger houses being built and because the launch prices were higher than they had been earlier.

New projects in Hyderabad launched last year had on average an area that was 33 percent larger than the area of budget homes that had been launched prior to last year; the size of such units increased to 1,500 square feet. The vast majority of the price appreciation of affordable housing in Hyderabad was due to an increase in the size of homes, yet new launches were also launched nearly 6 percent higher than they had been earlier. On an average, a newly launched project in Hyderabad was priced at 2,560 rupees per square foot last year.

Post By Shrikant Sain