Why ready-to-move-in property in Hyderabad is dearer than under construction property?

An interesting trend in property in Hyderabad shows how ready-to-move-in properties and under construction properties compete with each other. A comparison across 25 plus localities shows that the price of ready-to-move-in property is above than the price of properties in the under construction segment. Such comparisons become apparent in the July-September quarter. Notably, this trend among real estate in Hyderabad is the opposite of that observed during the past five years. Under construction, projects in Hyderabad were more expensive than ready-to-move-in projects. The price difference of ready-to-move-in and under construction properties have by nearly declined by 4 percent during July-Sep quarter. Ready-to-move-in properties had a weighted average price of Rs 3,668 per sq ft while under construction properties had a weighted average price of Rs 3,642 per sq ft in July-Sep 2016 quarter 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 5 percent, individually. The property of under construction in Madhapur and Banjara Hills increased by 5 percent while it increased by 3.4 percent in Hitech City. Throughout real estate in Hyderabad, the price of ready-to-move-in properties had increased by 2.4 percent while the price of under construction properties rose 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. 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. The builders anticipate greater demand for homes in the future in Hyderabad.

ConclusionThe current trend for ready-to-move-in flats in Hyderabad is facing a reverse trend as compared to the prices of under construction properties. The under construction projects are 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 13 percent since September 2013 while the price of under construction units has risen by 7 percent during the same period. At present, there are new launches happening in the Hyderabad City and this will grow further in the near future.

An Overview of Apartments in SarjapurBuilders and Developers in Bangalore with projects in Sarjapur have not overlooked the luxury market as over five percent of the developments in the region are priced over one crore and thus are meant for upmarket customers. Over ninety percent of the homes at Sarjapur are two or three bedroom homes clearly indicating a strong preference by the builders in Bangalore, with projects in the region, inclination towards building homes for low, middle, or modestly upmarket buyers. As the region develops the size and price of many of the apartments in Bangalore at Sarjapur may rise in value.