Does Buying Property in Hyderabad Make Sense?
Ever since the launch of the demonetization scheme in 2017, the real estate market has taken a hit for the worse. Real estate prices have not only fallen down, but people are refraining from investing in new property, simply because of the dwindling property prices. Given the volatility of the Hyderabad real estate market, people prefer to buy out new apartments, versus renting them.
Despite the volatility in North India’s real estate market, it’s safe to assume that South India’s market is relatively more stable. However, that does not discount the fact that the Hyderabad property prices are also stable as compared to the rest of South India.
Doing the math – rent vs. buy
An average 2BHK Hyderabad property (let’s talk about a 2BHK for convenience sake) will cost around Rs 31.65 lakhs in the city of Hyderabad. The down payment you would be required to pay would range between 6 to 7 lakhs. The final amount, after adding the interest amount, would come to 28 lakhs, which excludes the down payment. On a monthly basis, the total for a year would be Rs 1.4 lakhs or Rs 11, 700 per month.
On the contrary, if you were to take up a house on rent on a month on month basis, the rent for the same apartment would be anywhere between Rs 12000 to Rs 13000. Even though the rent and the EMI amount are almost similar, it would make more sense to purchase a flat, rather than renting it out.
With the rise of the IT events within Hyderabad, Hyderabad real estate is slowly seeing a remarkable hike in the overall returns. Areas in and around Hitec City and Gachibowli are rapidly becoming the popular destinations for aspiring home owners. Kukatpally is another preferred destination for people working in the IT companies in Hyderabad. In this phase of development, Hyderabad builders are raking in profits, as they continue to ride the upward IT boom.
Currently, 93% of the real estate inventory is under construction, especially in parts of northwest and western Hyderabad. However, it is safe to say that there is an oversupply in the real estate industry, which translates into better buying options for home owners, in and around Hyderabad.
The final verdict
Talk about property prices, and it seems as if Hyderabad is becoming a hot option for investment these days. Not only has the city of Nawabs become the talk of the town, but people are rushing to cash in on the quality of property available, in and around the IT hubs, so that they are not left behind in the rat race. It will be only a matter of time, before Hyderabad, like the rest of South India, will become an area to reckon with in the long run.