Hyderabad's surging property prices pose challenges for homebuyers

26 Dec 2023 CW Team

Acquiring a pre-owned apartment has become a formidable challenge for the general public, mirroring the difficulty of purchasing a new residence in Hyderabad.

In the aftermath of the pandemic, the prices of second-hand homes have surged, nearly reaching the levels of newly constructed apartments before the onset of Covid-19. Whether in the west at Gachibowli, the east at Uppal, the south at Bandlaguda, or the north at Kompally, obtaining a used flat for less than 50 lakh has become exceedingly challenging for prospective buyers. Along the IT corridor, a decade-old 2BHK commands a rate of 7,000 per square foot, while 3BHKs are available at 9,000 per square foot.

Karthik Verma, a tech professional residing in a rented house in Lingampally, shared his disappointment, ?After returning to Hyderabad post work-from-home, I wanted to have my own house. So, I started searching for an old flat in Madhapur and Hi-Tec City areas around 50 lakh. However, I was disappointed by looking at prices of used flats which are available for more than 60 lakh.?

P Jaya, a private employee in SR Nagar, had planned to opt for a second-hand home priced between 30 lakh and 40 lakh, as new flats exceeded 70 lakh. However, she expressed surprise at owners quoting 50 lakh to 60 lakh for 10-year-old 2 BHKs after a month-long search in areas like Ameerpet, Sanathnagar, Moosapet, and Kukatpally.

Developers emphasise the robust demand for flats as assets and long-term investments. A city-based developer remarked, ?Usually, the life of a flat is above 50 years and the cost will be 75 to 80% on newer ones. Those who cannot afford new apartments are going for such flats.?

A survey by a private property sale and purchase app reveals that renovating a house before selling can fetch a higher price, witnessing a 10% increase from the previous year. This includes interior renovation, home painting, and cleaning, all bundled together. In Hyderabad, 55% of sellers have raised property prices in the last 3-6 months.

N Praveen, president of the Telangana realtors association, noted, ?People who had invested in apartments 10 years back are seeing good returns now for the resale. A decade back, people had invested 3,000 per square feet, and if they sell them now, they could get anywhere between 5,000 and 6,000 per square feet.?

Acquiring a pre-owned apartment has become a formidable challenge for the general public, mirroring the difficulty of purchasing a new residence in Hyderabad. In the aftermath of the pandemic, the prices of second-hand homes have surged, nearly reaching the levels of newly constructed apartments before the onset of Covid-19. Whether in the west at Gachibowli, the east at Uppal, the south at Bandlaguda, or the north at Kompally, obtaining a used flat for less than 50 lakh has become exceedingly challenging for prospective buyers. Along the IT corridor, a decade-old 2BHK commands a rate of 7,000 per square foot, while 3BHKs are available at 9,000 per square foot. Karthik Verma, a tech professional residing in a rented house in Lingampally, shared his disappointment, ?After returning to Hyderabad post work-from-home, I wanted to have my own house. So, I started searching for an old flat in Madhapur and Hi-Tec City areas around 50 lakh. However, I was disappointed by looking at prices of used flats which are available for more than 60 lakh.? P Jaya, a private employee in SR Nagar, had planned to opt for a second-hand home priced between 30 lakh and 40 lakh, as new flats exceeded 70 lakh. However, she expressed surprise at owners quoting 50 lakh to 60 lakh for 10-year-old 2 BHKs after a month-long search in areas like Ameerpet, Sanathnagar, Moosapet, and Kukatpally. Developers emphasise the robust demand for flats as assets and long-term investments. A city-based developer remarked, ?Usually, the life of a flat is above 50 years and the cost will be 75 to 80% on newer ones. Those who cannot afford new apartments are going for such flats.? A survey by a private property sale and purchase app reveals that renovating a house before selling can fetch a higher price, witnessing a 10% increase from the previous year. This includes interior renovation, home painting, and cleaning, all bundled together. In Hyderabad, 55% of sellers have raised property prices in the last 3-6 months. N Praveen, president of the Telangana realtors association, noted, ?People who had invested in apartments 10 years back are seeing good returns now for the resale. A decade back, people had invested 3,000 per square feet, and if they sell them now, they could get anywhere between 5,000 and 6,000 per square feet.?