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Hyderabad Realty Market: Prices Falling But Not For Long


Hyderabad Realty Market: Prices Falling But Not For Long

Last updated: July 15 2010
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  • Hyderabad Realty Market: Prices Falling But Not For Long

    Hyderabad's property prices have begun to fall. But the correction will reflect in built up prices a year from now.

    Hyderabad's new international airport will come up in Shamshabad. It is seen as the focal point of Hyderabad's real estate boom, but prices over there are declining.

    Land prices in Shamshabad have fallen by up to 35% in the past six months. When the government said it would set up an airport here, several investors rushed in, anticipating large occupied demand; as a result, prices began to rise. Then the occupier demand came in too slowly.

    Samit Chopra, National Director-Corporate Solutions, Jones Lang LaSalle said, "The anticipated occupier demand has not come through as quickly and in the quantum that was expected. This has resulted in some slowdown in investment activity, as a result of which, land prices are falling."

    Shamshabad's proximity to the new proposed airport made it a natural choice for commercial development. But with the creation of Greater Hyderabad, the government has opened up alternative areas with similar infrastructural facilities and far lower rates.

    Experts estimate an absorption of 5-6 million square feet of commercial space in Hyderabad each year, while Greater Hyderabad is expected to throw open 40 million sq ft, in the next three years. Besides, Shamshabad's infrastructure has not developed as quickly as expected.

    Large occupiers always focus on areas that have good infrastructure and good amenity value. Shamshabad looked like a good location to attract that kind of infrastructure and amenity value. Yet, it has not picked up the pace that was expected.

    Even within city limits, land prices have corrected by 15 %. But shortage of ready-to-occupy property is supporting prices. With more such properties getting on to the market, experts believe a correction is due in a year.
  • #2


    Re : Hyderabad Realty Market: Prices Falling But Not For Long

    Beatuty green is the kingdom of beauty.A thing of beauty is a joy forever,
    Hyderabad is the 5th largest metropolis.

    After Shamshabad ariport inauguration in Hyderabad..the price of real estate also increased not only nearby Shamshabad but also all around hyderabad. Hyderabad real estate increasing day by day rapidly.
    Last edited April 26 2015, 11:30 AM. Reason: Advertisement Link


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