Real estate market immune to agitation, say housing experts.
Hyderabad residential real estate market property values are continuing to grow amidst fears loomed in the market over agitations. “The market has become so immune and the growth in property values acknowledges this. There is a slight growth in property values by around Rs.100-150 per sq ft quarter on quarter. People, who were waiting for further fall in property prices, have stepped in to buy their required property, driving the sales in the market,” says Bhawar Lal Jain, executive vice president, APREDA.
However, investors and people who are looking for ROI are still cynical about the market. “The inherent appetite for owning property is still there in buyers. The market is still driven by the people who want to buy a property to settle and live in a comfortable house. For instance, there is an inflow of people to the City for employment. Around three to four lakh people have got jobs with salaries ranging from Rs.50,000-Rs.60,000 last year. Of those, two to three per cent of them want to settle in the City by owning a flat, which will lead to the sale of around 10,000 flats. If the industry can sell around 20,000 -30,000 flats annually, it will meet the supply of the market.
“Builders who plan the properties according to the need of the market cannot be in loss. There isn’t any developer who lost money by betting on small projects. Developers who invested heavily on land before 2009 and developed projects, and those have flats worth above Rs.50 lakh have faced serious trouble in absorption. The City market is still viable for developers if they cater to real buyers by developing affordable housing projects. There is no dearth of opportunity in the City, compared to Bangalore or Chennai. However, there are no doubts that these cities need heavy investments in developing projects and also having higher returns,” he says.
“If a customer wants to buy a property purely for investment, it is better to opt for a commercial real-estate property, which will give better returns. A buyer can expect a return of seven to eight per cent every year along with the appreciation,” Jain explains.
Talking about the upcoming real estate areas, he says there is huge development along the ORR corridor. Tellapur, Kollur, Pati Ghanpur are evolving markets and people are looking at these places to buy the property. However, the infrastructure of the City needs to be developed in terms of radial roads. The Outer Ring Road or the infrastructure that is developed there will be of no use until there is seamless connectivity provided to the projects that are getting initiated around that place.
APREDA property show
APREDA property show will be held on November 10-11 at HITEX. Around 200 developers and builders will be showcasing a range of properties. The show is expected to have 50,000-60,000 visitors this year.