Realty prices seeing a spike in IT hub

Manikonda: Prices of flats in KPHB, Gachibowli and Manikonda areas have seen a sharp rise in the latest four years. Though the prices reached sky high, the demand for the flats is steadily increasing in all these areas and across the state capital.

A 2BHK flat in 2015 was sold at Rs 2,500-3000 per sft and now the price steeply rose to Rs 4,500-5,000. Though the costs seem hardly affordable, sales and investments never witnessed deceleration in the recent years, said builders to The Hans India.

On the increasing prices of villas in Hyderabad, promoters of Ashoka Developers, one of the prominent builders in Hyderabad, informed that it was only during 2008 to 2014 that the market declined somewhat due to state bifurcation issues. However, since 2016, the market had been rising steadily due to demand for flats and villas in the aforementioned areas, they said.

"The prices as also the demand might go up further and there is also a chance of sustainable growth of market for the next two to five years," says Marketing Head Ashitosh, Ashoka Developers and Builders Private Limited. He said, "a villa in Komapally under the project 'Ashoka A La Maison' in 250 sq yards was sold for Rs 18 lakh in 2014 and the price has risen ten-fold.

Villas in Komapally which were costing Rs 1 crore each four years ago are now costing Rs 3 crore. The prices not only increased for villas or built properties but also for the lands. Land price in Mokila area doubled in the latest two years. It was costing Rs 15,000 per square yard in 2016 and now it is around Rs 40,000 per square yard."

The average house price in Hyderabad, which was 47.9 times the average monthly income in March 2015, shot up to 60.3 times in March 2019, indicating rise in unaffordability over the long-term. Rise in unaffordability has been the sharpest in Hyderabad with 26% rise in the latest four years, followed by Chandigarh (21%) and Ahmedabad (18%), according to residential market analysts.