Hyderabad Set For Strong Growth During Latter Half Of 2012
News Posted On: 03 May 2012
According to local estate agents, the residential property market in Hyderabad in India is set to see strong growth during the latter half of this year, after having a relatively quiet 2011. This is likely to be due to pent up demand, as high interest rates have been deterring many buyers from taking the plunge.
Many of those looking to purchase homes are interested in affordable housing, with most looking to spend around Rs 24 lakh, whereas before their budget was Rs 32 lakh. Most are also looking for smaller properties than before. The most sought after areas are in Miyapur, Kukatpally, and Gachibowli.
At the moment it is still a buyer’s market in Hyderabad, and the absorption rate for apartments is currently around 12% which is significantly better than the 10% rate seen in 2010. This rate isn’t expected to change much in the short term. This is quite different from 2009, when it was very much a seller’s market, and hundreds of units were sold before a development was officially launched.
Developers are currently holding back from further projects as they don’t want to add to the supply. Around 2,500 units come onto the market annually, with about half of these being sold and the rest carried over to the next year. It is estimated the current supply will be completely sold within the next two years. This market isn’t just attractive to first time buyers, as agents are seeing increasing numbers of buyers looking to purchase second homes.
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Written by Les Calvert
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