Hyderabad seems to be the new destination of the real estate investors of late. What seems to be the reason? Does it have anything to do with Bangalore and Chennai market’s recovery? Well it has. Read on to find out.
The market watchers opine that lot of second or even third sales are happening in areas like Sarjapur Road, Marathahalli, parts of Hosur Road and even Thanisandra and Whitefield. These sellers are targeting homes and property in Hyderabad. The market observers have noticed that people having multiple properties in Bangalore and Chennai are selling properties to invest in Hyderabad. They also state that this is also probably for the taste of success in real estate investment in Bangalore that they are trying to invest in other cities and markets. But the question is why Hyderabad.
What is special about Hyderabad?
This strategic move can be attributed if we look at the comparative prices of the property in these cities. A 2BHK apartment in Bangalore is priced in the range of Rs. 60 to 70 lakhs for a built-up area of about 1100 to 1300 sq. ft. In other places where the market is a bit more favourable like Kochi, it is Rs. 60 to 70 lakhs for a similar property and in Chennai it may range from Rs. 50 to Rs. 60 lakhs. In contrast to these cities a 2 BHK in Hyderabad can range about Rs. 45 to 50 lakhs in satellite areas and Rs. 50 to Rs. 60 lakhs in recently up-coming IT localities with a built up area of about the same.
The experts opine that this price and built-up area profitability is attracting the customers from other cities.
Where in Hyderabad are the investors mostly targeting?
The market watchers and brokers state that the small investors are mostly targeting areas like Miyapur, Nallagandla, or even the Madhapur-Gachibowli stretch. The newly built or the up-coming projects are priced at a range of Rs. 2,500 to Rs. 3, 100 per sq. ft. in few of these locations. They also opine that the price increase has been of 2 to 5 per cent in the last year owing to the increased demand from the mid income group. The Hyderabad market watchers opine that the small investors of other cities have targeted Madhapur- Gachibowli stretch which has also witnessed a price rise within 10 per cent in the last year. The current price per sq. ft. in this region is Rs. 3,000 to Rs. 5,000.
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