If the current trends are any pointers, while the residential market in Hyderabad witnessed a price appreciation of 5.2 per cent (year-on-year) in 2015, it is expected to see a 4 per cent price rise in 2016, according to Anuj Puri, Chairman and Country Head, JLL India.
Known to be a market driven by end-user demand, Hyderabad has never seen runaway price escalations unlike some of the more speculative markets in India.
Hyderabad, which has now become a well known IT hub, has been witnessing a strong demand for office space for some years now. As a result, the demand for homes in the city has also grown over the years barring the period of political turmoil.
At the sub-market level, in 2015, western suburbs of Hitec City and Kukatpally saw the highest appreciation at 15.4 per cent followed by the northern suburbs of Bachupally and Shamirpet and eastern suburbs of Uppal and LB Nagar both at 4.7 per cent. The prime sub-market of Banjara Hills and Jubilee Hills followed with 4 per cent hike and the secondary sub-market of Begumpet in Secunderabad saw a price rise of 2.3 per cent.
Developers and buyers are bullish on the western sub-market, which is the major driver behind Hyderabad’s residential demand-supply dynamics.
Most of the recently-launched projects in the western sub-market are expected to address housing demand in the next 2-3 years, which in turn will be triggered by the heavy employment generation anticipated here.
On the other hand, the prime and secondary sub-markets witnessed moderate appreciation due to their higher land costs, which was also complimented by the ongoing metro rail development – the first phase of which will commence in 2H16.
The upcoming metro line led to price appreciation in the northern and eastern submarkets. Capital value appreciation of villas in the northern sub-market remained stagnant as only a few projects were launched and the demand remained tepid among buyers.