The realty scene in Hyderabad is robust and positive. There are a lot of media stories around it. However, the stability and success of the real estate sector are usually gauged by the fact of how much of the demand and/ or sale is for self-use and not if a property is being purchased for investment purposes.
Given this scenario, the price range of Rs 25 lakh to Rs 50 lakh segment plays a pivotal role in determining the continuity of the real estate market of a particular city. Particularly in Hyderabad, where the prices are lower than in other metros, more than half of the residential sales happen in the range of Rs 25 lakh and Rs 50 lakh. According to a report by Knight Frank Research, this percentage has seen a jump of almost 20 percent in the last year, which is again based on the information from the Telangana Registration and Stamps Department.
Real estate experts feel this increase is due to an increase in disposable incomes and also the need for homes from genuine buyers. As of now, most sales in Hyderabad are towards the higher end of the Rs 25 to 50 lakh segment. Of course, there are 2BHK properties that are being sold for Rs 70 to Rs 80 lakh. Going forward, they feel most sales will be happening between the Rs 50 to Rs 80 lakh segment.
JLL India Hyderabad MD Sandip Patnaik feels this can be attributed to salary hikes and a ‘talent war.’ For the first time in 20 years, IT companies are vying to retain talent, and they are paying huge salaries to retain the ones they already have. This has led to a salary hike of almost 50 percent to 300 percent. In the past year, the disposable incomes of people have gone up, and they are investing in realty. Though the beginning of the year was a FOMO situation for realtors, there have been extensive launches, and this, in turn, has given many options for buyers leading to stability in the market.