Hyderabad’s suburbs have recently witnessed an increase in the rates of real estate properties. Places like the Jubilee Hills, Gachibowli, Nizampet, Kondapur, and Madhapur are also in the same situation. Also, areas like Gopanally, Manikoda, and Narsingi are facing increased demand due to the rise in prices of real estate.
Hyderabad was uncertain about having much real estate activity at the time. People are becoming more interested in developing IT enterprises, tech parks, and commercial institutions, which has resulted in rising real estate prices in the suburbs.
Knight Frank has observed an increase in demand for real estate in Hyderabad’s neighboring areas. The study featured a rise in real estate sales from Hyderabad’s four residential marketing districts, including Hyderabad, Medchal- Malkajgiri, Rangareddy, and Sangareddy.
Further estimated reports of registration
According to an analysis of home sale registrations, the Medchal-Malkajgiri district comes out on top with 44%, trailed by the Rangareddy district with 38%. In contrast, the Hyderabad district accounts for only 14% of overall registrations.
According to Knight Frank India, 5,181 pieces of real estate property were registered in Hyderabad in August. Participation and demand appeared to be declining when the month recognized as Ashada Maasdam began. According to popular belief, this is not a good time to start new endeavors.
Expected plot registrations in August were Rs 2,658 crore, representing a 26% rise from the previous month.
The present situation of commercial real estate in Hyderabad
Since the outbreak, there has been a rise in demand for huge ticket-sized homes. The bulk of registrations was for plots ranging in size from 1,000 to 2,000 sq. ft.
It is well known that perhaps the economy is currently experiencing inflation. Despite all of the economic and external issues such as underemployment, interest rates, taxation, and so on, the rise in real estate prices in Hyderabad’s suburbs is extremely remarkable.
It signifies the fact that the commercial real estate industry is being widely accepted as a popular means of alternative investment. Therefore, many investors are willing to invest their capital in real estate investment. Fractional ownership is also witnessing a surge in popularity across the Indian market.
Demand across popular cities of the Indian market
According to a Reuters survey of property specialists, real estate prices in India were predicted to rise 7.5 percent on a pan-India scale this year, the quickest gain in five years. The average house price is expected to grow by 6% the following year and 6% in 2024. The survey of 13 real estate analysts was conducted from May 11 to May 27. In a March survey, experts predicted a 5.0% growth rate for this year.
Highlighting the improving optimism, the BSE benchmark of real estate businesses has risen 21% in the last year, surpassing the wider Sensex’s 15% increase.
Costs in Mumbai and Delhi, along with the bordering National Capital Region, are predicted to grow by around 4% and 5% this season and next, according to a Reuters poll. Rates in Bengaluru, as well as Chennai, are expected to grow by 5.5%-6.5% over the following two years.
Analysts believe that rising home prices are being driven by rising housing demand and rising building material costs. Analysts cautioned, however, that increasing interest rates might reduce affordability, particularly for first-time buyers.
Earlier in the month, the Indian Reserve Bank raised the baseline repo rate (the rate that the RBI loans to banks) by 40 bps to 4.40%, marking the first rate increase in almost four years. To combat excessive inflation, experts anticipate the reserve bank to accelerate interest rate rises.
“The Indian marketplace has profited greatly from cheap lending rates over the previous two years.” This policy rate increase will result in increased EMIs for house loans. Yet, we believe that better purchaser attitudes, a desire for home ownership, and solid income growth will keep the housing market afloat. “The stance of monetary policy remains supportive, and with the epidemic fading and economic development, we expect consumer demand to continue healthy in the short term,” Gulam Zia said.
Analysts warn that if mortgage rates rise considerably, many would-be first-time owners would decide to rent instead. However, rents are likely to rise as well, according to the majority of participants in a Reuters survey.
Is this the perfect time for real estate investment?
Yes, it is a perfect time to invest in commercial real estate as the industry is witnessing a surge in demand across various key cities in the country. Fractional ownership can be one of the best ways for new investors to make investments in the real estate industry. Making investments can also be very easy and simple with the help of innovative investment solutions offered by Assetmonk.
You can check out the website for more details on alternative investments and much more!