Real estate in Hyderabad: Property rates witness hike

Hyderabad: Another good news for the real estate developers in Hyderabad as the property rates in the city have shown an annual seven percent increase in the first quarter of 2022.

The average rate of properties in the city is Rs. 6000 per sqft. It is second most expensive in the entire country.

As per a real estate company PropTiger.com, at Rs. 9800 per sqft, the property in Mumbai is most expensive in the country.

Meanwhile, home sales in Hyderabad dropped by 15 percent while new supply increased by 92 percent in Q1 of 2022 when compared to the same period last year.

In Q1 of 2022, 14572 new homes were launched in the city whereas, only 6556 were sold in the quarter. Currently, unsold stock stands at 73651 units.

As per an estimate, real estate developer would take 42 months to sell off the unsold stock in Hyderabad.

Average rate of properties in Hyderabad, other cities

The property value in Hyderabad ranges from Rs. 6000 to Rs. 6200 per sqft whereas, in Mumbai, it is Rs. 9800 to Rs. 10,000.

The following is the average rate of properties in Hyderabad and other cities in India.

Cities Price per sqft (in Rs)
Mumbai 9800-10000
Hyderabad 6000-6200
Chennai 5700-5900
Bengaluru 5600-5800
Pune 5400-5600
Delhi NCR 4500-4700
Kolkata 4300-4500
Ahmedabad 3500-3700
real estate in hyderabad

Real estate prices in Hyderabad, other cities likely to go up

Over the last year, developers’ average cost of construction has risen 10-12 percent, owing to higher input costs due to supply-side constraints.

The cost of key materials like cement and steel has risen over 20 percent yearly as of March 2022. These constitute a predominant share in the total cost of construction. So far, developers have been cautious about increasing prices as the market was recovering from the aftermath of Covid-19. However, developers have now started feeling the pinch of rising costs and started reviewing their pricing strategy, Colliers said in a report.

“The rising cost will impact developers in the affordable and mid-market segments relatively more as they are already operating on lower margins. With wholesale price inflation (WPI) and material cost, both seeing a double-digit rise, the cost of construction can rise by a further 8-9 percent by December 2022,” said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia, Colliers.