Why Hyderabad Real Estate Remains the Most Affordable Among Metros in the Country?
In recent years, the real estate market in India has witnessed significant growth, with property prices soaring in major cities across the country. Hyderabad, a city known for its rich history and vibrant culture, has also experienced a steady rise in property prices. However, despite the surge in demand for housing and the city’s robust economic growth, Hyderabad has managed to retain its position as one of the most affordable cities to buy property among the top metros in India. This blog will delve into the reasons behind the affordability of Hyderabad’s real estate market when compared to six other major cities, and explore the factors that have contributed to its steady growth.
Table of Content
- A Comparative Analysis of Property Prices
- Steady Economic Growth and Infrastructure development
- Reasonable Price Appreciation
- Comparing Price Trends with Other Metros
- Impact of the Pandemic on Real Estate Prices
- Role of Branded Developers and Construction Costs
- Favorable Market Dynamics for Long-Term Investors
1. A Comparative Analysis of Property Prices
A recent report by property consultant Anarock compared the average property prices in seven major cities in India – Delhi-NCR, Kolkata, Mumbai, Pune, Hyderabad, Chennai, and Bengaluru. The study revealed that Hyderabad stood out as the most affordable among these metros. The average property price in Hyderabad was recorded at Rs 4,620 per square foot, significantly lower than the average property prices in the other cities.
2. Steady Economic Growth and Infrastructure Development
Hyderabad’s real estate market has been buoyed by the city’s steady economic growth and continuous efforts by the State government to develop infrastructure and improve connectivity. The rise of the IT industry in Hyderabad has attracted a large number of working professionals, leading to increased demand for both residential and commercial properties.
3. Reasonable Price Appreciation
While property prices in Hyderabad have witnessed a steady rise, the city has managed to maintain reasonable price appreciation over the years. An analysis of five-yearly increases in average property prices revealed that Hyderabad recorded a maximum of 10 percent rise in the last five years. This indicates that the city offers a stable investment climate without experiencing exorbitant price surges.
4. Comparing Price Trends with Other Metros
The comparison of property price trends in Hyderabad with other major metros further highlights its affordability. In 2018, the average property price in Hyderabad was Rs 4,128 per square foot. By 2022, it had risen to Rs 4,620 per square foot. In contrast, cities like Bengaluru and Mumbai witnessed more substantial increases, with property prices reaching Rs 5,570 per square foot and Rs 11,875 per square foot, respectively, in 2022.
5. Impact of the Pandemic on Real Estate Prices
The real estate sector, like many other industries, faced challenges during the COVID-19 pandemic. However, post-pandemic, there was a surge in demand for properties across various cities, causing prices to rise. Despite this, Hyderabad managed to maintain its affordability due to the city’s unique market dynamics and government measures to support the real estate sector.
6. Role of Branded Developers and Construction Costs
Another factor that has contributed to the affordability of Hyderabad’s real estate market is the involvement of branded developers. These developers, despite strong demand and rising construction costs, have not shied away from implementing price hikes. This approach has helped maintain a balance between demand and supply in the market, preventing speculative price bubbles.
7. Favorable Market Dynamics for Long-Term Investors
Looking ahead, experts predict that the real estate market in Hyderabad will continue to be driven by end-user demand. For serious long-term investors, the market dynamics are expected to remain favorable, offering opportunities for steady and sustainable growth.
Conclusion
In conclusion, Hyderabad’s real estate market has managed to stand out as the most affordable among major metros in India. The city’s steady economic growth, government support for infrastructure development, and the presence of major IT companies have all contributed to the demand for properties. While property prices have witnessed a gradual rise, Hyderabad has maintained a reasonable level of affordability compared to other cities. The involvement of branded developers and their cautious approach to price hikes has also played a crucial role in keeping the market balanced.
As we move into the future, Hyderabad’s real estate market is likely to remain an attractive destination for both homebuyers and investors seeking a balanced blend of affordability and growth potential.
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