Infrastructure facilities, lifestyle ambience, affordability and consumer preferences now dictate choice of residential properties in Hyderabad. Manikonda and Kondapur are emerging as the preferred localities.
There are many attractive locations in Hyderabad offering properties to home buyers. The real estate market in Hyderabad has been sluggish for quite some time now. One of the biggest challenges in the current realty market is lack of consumer confidence and trust.
In such a case, there is always confusion among home buyers about the locality to invest in? There are a host of factors which have led to this situation.
Challenges in the real estate market
One of the major reasons for home buyer’s hesitancy in buying property is that there has been an unreasonable delay in completion of projects. Projects have been stalled for lack of approvals and other hurdles in clearances. In fact, lack of banking capital and high interest rates have made investors shy away from the market.
Now the most important thing is to boost the confidence of home buyers. A property owner should make a detailed analysis of one’s budget, location and the property type they wish to purchase. A buyer should know exactly where they should put their moolah!
Choosing a location
Magicbricks spoke with Ashok Kumar, principal and MD of Cresa Partners who highlighted certain points that a home buyer should keep in mind before choosing a property location.
Kumar said that when a home buyer chooses a location for investing in a property, he or she should make sure the area is livable. There should be good social and physical infrastructure to support the lifestyle. Commercial setups, educational institutions, hospitals, etc., should be present to ease the lives of residents. Similarly, infrastructure development helps in boosting the property’s worth. There should be scope for rise in property values in future which means good returns on investment. A good location makes buyers confident about investing in real estate.
Home buyers prefer a locality that is easily accessible from their workplace. The areas that have both commercial space and IT offices nearby witness demand.
The IT hub, located in the western parts of the city, is actually dominating the Hyderabad real estate market. Areas such as Gachibowli, Hitec City, Jubilee Hills, Manikonda, Kondapur, including others have observed a significant rise in capital as well as rental values. The rental values in the mentioned localities are between 20,000-50,000 per month.
According to PropIndex (Oct-Dec 2015), the India apartment index by Magicbricks, the locality with large consumer preference witnessed the highest price increase. In the Oct-Dec quarter 2015, Manikonda had the highest of 15 percent price increment followed by Kondapur at 12 percent. The prices in Gachibowli remained practically stagnant with only 1 percent increase.
One can easily choose locations in areas that are witnessing low budget real estate development. The projects that are focusing on affordable housing in Hyderabad may witness good residential demand in the near future. A property buyer can easily negotiate in an area where there is more residential availability and less consumer demand. People also prefer staying in a location that has easy access to malls, bus stops, schools and hospitals. It helps to meet the daily necessities.
Kumar said that a wait and watch approach can help to get a better understanding of the real estate market.
“The locality should have good infrastructure facility and buyers should choose a locality according to their requirement. There are many properties available in Hyderabad providing modern amenities and which are available near office hubs. One can easily find good quality houses within the required budget. One should also ensure that people are already staying in the locality for safety and security,” says a real estate broker, Krishna, Propdeals.
Property buyers can plan to invest in township projects that are more secured as of now. And, the ‘right location’ is an important aspect that one should keep in mind before purchasing a property. Hope these tips help home buyers in their future purchase.
Source: Namrata Roy, Times Property, Magicbricks Bureau/ Hyderabad.