Housing gets bigger in Hyderabad
Hyderabad: The buying sentiment in Hyderabad is changing rapidly and residential property buyers are ready to shell out more if they are able to get bigger spaces to live in. Till about last year, the demand for residential properties was in the affordable segment, now, this is changing with many looking to shell out more than Rs 80 lakh to stay in bigger homes. Similarly, the uber luxury segment (ranging between Rs 2 crore to Rs 5 crore) is also seeing an increase in demand.
If one looks at the residential zones in Hyderabad, especially the western corridor has always been dominant and now buyers are either looking for homes that are more than 3BHKs and 4BHKs or are ready to buy row houses and villas. This new buying sentiment, according to experts, has been a recent development with the pandemic, higher disposable incomes and the need for space making buyers to look at properties that are bigger in size and high-end in pricing.
“Most of the new residential buildings coming up in Hyderabad are more focused on larger homes and are high priced. From buyers preferring to buy apartments that are either three-bedroom or four- bedroom to some even looking at independent floors, the whole residential real estate market has evolved over time. While the pandemic did force people to look at homes that can accommodate both office and personal lives, the IT sector – which is a major industry in Hyderabad – has also rolled out hikes generously, thus, contributing to higher disposable incomes,” says a city-based developer.
Markets driven by end-users
A recent report by Anarock on Buyer Interest Profiling of Indian Residential Real Estate also mentioned that the service class is the dominant socio-economic segment and the primary homebuyer in India. “Post the reforms and the pandemic, the markets have transitioned to be driven by end-users as prices have remained range-bound for a considerable period. Our findings reveal that the mid-to-high-end segment units are the most preferred in India and the service class buyers drive housing demand with a 68 per cent share. 90 per cent of Indian housing market is driven by the end-users,” says Anuj Puri, chairman, Anarock Group.
The same report also mentioned that the almost 93 per cent of property buying in Hyderabad is for end-use and only 7 per cent of buying happens for investment purposes. It also mentioned that there is a growing affinity towards large size homes with 3BHKs and 4BHKs constituting almost 70 per cent of the demand.
On the contrary, neighbouring cities like Bengaluru and Chennai are more dominated by 2BHKs and 3BHKs even the former has a marginal demand for plots and villas, the report said. In Chennai, there is still not much demand for 4BHKs and villas while 2BHKs dominate the market.
In terms of price range as well, Hyderabad holds a distinct position of having more than 70 per cent of buyers looking for properties that are worth more than Rs 80 lakh with the Rs 2 crore to Rs 5 crore segment seeing a demand of almost 17 per cent.
