Hyderabad Real Estate Sees Surge in Demand for High-End Residences Amid Escalating Prices

Hyderabad, March 23: (Maxim News) In Hyderabad, there’s a noticeable surge in demand for high-end residences compared to last year, particularly evident at the beginning of this year. In 2023, houses valued at over Rs.1 crore made up 8 percent of the market share, a figure that has now risen to 14 percent, driven by escalating real estate prices, according to industry insiders.

For those seeking a two-bedroom flat in a gated community with basic amenities, the costs are substantial. Presently, the average square foot price in the city stands at around Rs.5 thousand. This base price translates to a cost of up to Rs.70 lakh for a 1400 square feet two-bedroom flat. Additional expenses, such as infrastructure charges for amenities like car parking, clubhouse membership, gas, and EV charging points, amount to approximately ten lakh rupees. Five percent GST, along with registration, stamp duty, and transfer charges, add another 10 lakhs to the bill. Furthermore, an additional ten lakhs are typically allocated for interior design. In essence, even with a budget of one crore rupees, one can only afford a two-bedroom flat.

Should one desire a more spacious three-bedroom layout, costs escalate further. Factors like floor rise charges for upper-floor apartments, orientation preferences (east or north-facing), and additional amenities like balconies overlooking ponds or gardens all come with their extra charges. A three-bedroom flat outside the IT corridor typically costs around one and a half crores, while within the IT corridor, prices range from two to two and a half crores. This explains the spike in registrations for houses exceeding one crore rupees in January, with 71 percent of registrations falling within the 1000 to 2000 square feet range.

To cater to the common and middle-class segment, some builders are constructing two-bedroom flats within 500 to 1000 square feet, categorized as affordable housing. With a reduced GST rate of 1 percent, these units are priced at around Rs.50 lakhs. However, due to a tepid response from buyers, not many developments are underway in this sector. Registrations for these affordable units dropped from 17 percent in January 2023 to 14 percent this year. (Maxim News) 

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