Hyderabad has witnessed a significant change in buyer behaviour, with demand for ready-to-move-in (RTMI) properties witnessing an impressive 84% increase.
Published Date – 11 Dec 2023, 04:32 PM
Hyderabad: Hyderabad has witnessed a significant shift in buyer behaviour, with demand for ready-to-move-in (RTMI) properties increasing by a massive 84 per cent. The recently released NoBroker Annual Real Estate Report 2023 highlights this significant growth.
Notably, the growing preference for RTMI inventory has its roots in the need for faster relocation, especially among renters, who are a key part of this emerging trend. At the same time, investors are seizing the fast-growing real estate market, eyeing the lucrative prospects for high rental yields.
According to the report, there are several factors behind this surge in housing demand among Hyderabadis. The reason for this sharp increase is expensive rental rates, with 33 per cent of individuals citing this as a reason, while 33 per cent cited affordability of a home as an encouraging factor. Additionally, 29 per cent of people emphasised the security of physical property ownership as a major motivation for investing in properties within the city.
“In Hyderabad, we are witnessing a tendency towards buying property within the city”, the report states, with 86 per cent of respondents preferring to buy a home within the city limits, while only 14 per cent considered buying property on the outskirts.
The survey conducted among first-time homebuyers showed a significant shift, with 87 per cent looking to buy a home for personal use while 13 per cent see it as an investment only. A majority of the prospective buyers in Hyderabad, i.e. 68 per cent, are looking to buy a home within the range of Rs 60 lakh, preferring mainly 2 BHK homes.
Vastu continues to remain important among homebuyers, with 89 per cent of Hyderabadis indicating that they consider Vastu compliance before finalising a purchase.
Commenting on the growth of the sector, Saurabh Garg, co-founder and chief business officer, NoBroker, cited increased demand for property purchases in 2023, rising rentals, and a surge in property prices.
“Most Grade A builders have experienced more than 50 per cent growth in sales compared to last year. Many new launches are still being made to meet the demand. Buyers are keen despite the price hike and builders are capitalising on the opportunity with new launches across cities,” he said.
Meanwhile, Hyderabad’s financial district has emerged as a coveted destination for businesses and IT hubs, leading to a surge in demand for properties. However, the report warns about a shortage of RTMI properties, leading to rising prices.
According to reports, builders are now opting for bigger properties to meet the demand for more spacious residences, especially in the IT corridor, where prices have shot up to around Rs 11,000 per sq ft.
The report also identifies best performing micro markets like Kundanpally and Gachibowli, and highlights areas like Kukatpally, Kondapur, Miyapur, Manikinda and Nizampet as top preferences for buyers.
City-wise details of property preference
Bangalore: Ready to move in: 88%; Under construction: 5%; Plots: 7%
Chennai: Ready to move in: 84%; Under construction: 6%; Plots: 10%
Delhi-NCR: Ready to move in: 78%; Under construction: 13%; Plots: 9%
Hyderabad: Ready to move in: 84%; Under construction: 8%; Plots: 8%
Mumbai: Ready to move in: 90%; Under construction: 8%; Plots: 2%
Pune: Ready to move in: 81%; Under construction: 9%; Plots: 10%
Top Buyer Localities of 2023
Kukatpally, Kondapur, Miyapur, Manikonda, Nizampet
Most sought after areas for rent
Puppalaguda, Nizampet, Hafeezpet, Madhapur, Nanakramguda