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It’s Now or Never In Hyderabad Realty Mart
Posted by Pradeep Sadanapalli | August 25, 2006 | 278 views
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Loading ...With Hyderabad being the latest destination for MNCs, corporates and educational institutes of repute , real estate rates are growing at an exponential rate. However aspiring house owners are confused: is it the right time to buy/build a house and reap the rewards or will the price bubble burst and leave them at a loss? Lets take a look.Why the boom?
Hyderabad seems the ideal place to invest, for land as well as residences, for several reasons : The economy is booming and promises to grow further. It is a hub for national and multinational corporations and educational institutes, Intel , Hyundai, Infosys, ISB, IIIT, BITS for now, and more are set to arrive. Impressive infrastructure when compared to other South Indian cities. The International Airport and the Outer Ring Road have given real estate scenario a huge fillip. Communication and transport facilities are looking up. City has no coastline, so it can expand in all directions. The climate is moderate and conducive to most industries. Retail activity is on the rise - multiplexes, malls, entertainment centres -they are all here. ITES sector in particular has created a vast pool of high net worth individuals.
To invest or not to invest?
While potential investors wonder if the bubble may burst or if the boom is for real, developers and builders suggest they dispel the ‘wait and watch’ policy.“Buy now, it may be too late tomorrow,” is what they exhort. Kavita, director projects of City Square (Happy Homes) says,“The rates are fluctuating a bit, but investors are assured 100 per cent returns; those who hadn’t invested earlier are regretting now.”
Suburbs, the new hubs
Now if you have decided to invest, where do you go? Suburbs and outskirts of Hyderabad seem to be in demand , especially for the middle income investors. Prem Kumar, managing director of Doyen Constructions says, “People are now more open to building or buying residences in the suburbs and are shedding inhibitions of distance and security. In fact, the cost in the city is higher and the growth in the suburbs is more than the city because in the city there is resistance to growth.”
Earlier farmhouses were in demand, but now lands for independent homes and apartments are selling like hot cakes. Kavita adds, “Residences in the suburbs will have greater appreciation value. Look at Bowenpally, did anyone imagine it would develop so much and so fast? Those who bought plots and apartments five years ago are minting money now.”
Hot Belts
While it seems like the Western part of Hyderabad is doing exceptionally well, especially Gachchibowli, Nanak - ramguda, Narsingi and Srisailam highway belt, North Hyderabad too is developing fast. However the Outer Ring Road with improved connectivity among all Zones could have a positive impact on other areas as well.
Rising construction costs
Increasing construction costs indicate that housing could get more expensive in future. Costs of Iron, steel, cement and sand are increasing by the day. While the cost of cement is around Rs 120- Rs 170 per bag, sources say that it may soon increase to Rs 200-Rs 250. Moreover, in the last two weeks, the cost of sand has doubled from Rs 250-Rs 300 per tonne to Rs 550-Rs 600. More reason why those planning to buy or build a home should do so now.
Rental Value
Even if one already owns a house in the city, the time is ripe to invest in a second one because rental values are also on the rise. A 2000 sft apartment in Banjara Hills is being rented out for anything between Rs 20,000 to 25,000 whereas in Marredpally it is between Rs 12,000 to 15,000. Prem Kumar clarifies : “Rental values have not gone up as fast as the sale prices, because people opt to buy rather than lease houses, with the help of easy loans.” So get rid of your apprehensions and buy now before the prices get too high.
Sources:
Economic Times
Topics: Real Estate |
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