Ready to Move in Property in Hyderabad Dearer than under construction Property

Interesting trends in property in Hyderabad show how ready to move in properties and under construction properties fare when compared to each other. A Comparison across over twenty-five localities shows that the price of ready to move in properties is greater than the price of properties which are under construction. Such comparisons become apparent when the relevant properties in the July-September quarter are compared. Notably, this trend among real estate in Hyderabad is the opposite of that observed during the past five years when units in projects in Hyderabad that were under construction were more expensive than ready to move in units in the city. The difference in the price of ready to move in properties in Hyderabad and properties under construction narrowed by nearly 400 basis points or 4 percent between April-June 2015 and July-Sep 2016. Ready to move in properties had a weighted average price of 3,668 rupees while properties under construction had a weighted average price of 3,642 in April-June 2015 and July-Sep 2016 respectively.

Hyderabad Localities in Depth Price MovementsThe price of ready to move in property in Hyderabad increased by 2.4 percent in Sainikpuri and 4.7 percent in Kukatpally while the price of property under construction in the two regions increased by 5.4 in Sainikpuri and fell by 5 percent in Kukatpally. In regions of Hyderabad such as Madhapur, Banjara Hills, and Hitech City the price of ready to move in property increased by five percent in each locality and property under construction in Madhapur and Banjara Hills also increased by five percent while increasing by 3.4 percent in Hitech Tech. Throughout real estate in Hyderabad, the price of ready to move in properties has increased by 2.4 percent while the price of properties under construction has risen by 1.9 percent.

The increase in the price of ready to move in real estate projects in Hyderabad likely signals a greater demand for such homes and an inclination among home buyers to purchase flats by builders in Hyderabad early rather than waiting for freshly built projects to be completed. Furthermore this trend may also signal a lower supply of ready to move in property in Hyderabad and indicate that builders in Hyderabad have a larger number of upcoming projects in Hyderabad and also that builders anticipate greater demand for homes in the future than they did a few years ago when work on the current inventory of flats in Hyderabad began.

Conclusion The current trend of higher valuations for ready to move in flats in Hyderabad when compared to the price of units under construction is a reversal of the trend a few years ago when projects in Hyderabad under construction had units which were valued higher than ready to move in flats in the city. In percent terms, the value of ready to move in homes in Hyderabad has increased by thirteen percent since September 2013 while the price of units under construction has risen by seven percent during the same period. Much of the current higher value enjoyed by ready to move in property in Hyderabad is due to an increase in the value of homes in the earlier quarters of this year.