Hyderabad real estate sector in 2018

Hyderabad real estate sector in 2018

Hyderabad has witnessed an increase in demand for residential properties in 2018. The Government policies such as RERA, the introduction of GST, and Demonetization are seen as positive steps to protect the rights and interests of the home buyer and boost the real estate sector.

Real Estate in 2018

The Central Government proposed "Housing for All by 2022" in the Union Budget (2018-19). The Government plans to set up a Housing Fund to construct 51 lakh houses in rural areas under the Pradhan Mantri Awas Yojna. Therefore, the Union Budget (2018-19) has brought a lot of cheer to the buyers and real estate developers, alike.   

The Government introduced RERA to bring complete transparency between buyers and sellers. This Act has raised the interests and confidence of the buyer. The features of RERA are mandatory registration, strong penalties, and complete transparency. RERA aims to standardise the business practices and transactions in the Real Estate Sector. Therefore, it protects the rights and interests of consumers and boosts the real estate sector. 

Know more about RERA

The GST aims to build a transparent and corruption-free tax administration. Though there were glitches following the introduction of GST, the long-term benefits override the initial problems. GST is expected to be a game changer and will have a positive effect on the real estate industry in the long run.

Further, in the year 2018, the rental income in Hyderabad is expected to increase compared to the previous year as per Ramesh Nair (CEO & Country Head of JLL India).

According to e-paper, Telangana Today, Ramesh Nair-CEO & Country Head, JLL India, said, "Rents in these markets are expected to rise faster into the range of 6-8 per cent (y-o-y). Hyderabad is expected to cross its historic rental peaks of 2017 in the next year."

Many Gated community apartments in Hyderabad are earmarked for construction from reputed builders like Modi Builders, My home, Patel Group and others. Most of popular projects are Coconut Grove, HONER VIVANTIS, Sumadhura Acropolis, Danish Heights, ADITYA WIIZ LAGOON, Pebbles Bay, and Smondo. In the year 2018, both the buyers and developers expect to reap the positive benefits of Government policies. The ultimate aim would be to keep the industry organised and boost the housing segment.

Everything indicates that 2018 will be the year in which the sector will show the maturity of the new cycle. The prices will continue to rise, but they will moderate and that sales will increase. The main challenge is to level the supply and demand for housing. The year is approaching, and time has appeared to address the forecasts and tasks that the real estate market should take into account in the next months.

The majority of promoters and experts consulted that 2019 will be the maturity of the market, but also that of moderation and price stabilization. This has been the best year for the housing market since the crisis broke out and we expect that trend would continue in 2018 - 2019 in more moderate terms.

The beginning of the recovery of the real estate sector was something different, and that recovery has been supported by the excellent moment of the economy. During the financial year, the real estate sector has grown again in all its areas, and demand will rise over the previous year, which will mean almost the sale of a huge number of properties.

But, in addition to these excellent figures for the year now concluded and the excellent indication for 2018 - 2019 years. The real estate agents understand that the next year will be a huge growth in the real estate sector. This new cycle is marked to cover the needs of the future owners. Many real estate builders are planning to construct increasingly green, modern and intelligent homes fully adapted to the needs of the buyer.

Prices

One of the leading indicators to measure the growth of the real estate market is the price of residential properties. According to the experts, the parameter will continue to rise but more moderately by 2019. The behaviour of prices remains very uneven, and in 2018 the price of residential properties will be different. The areas with good infrastructure developments will have a high demand for properties.

Although the average price of housing depends upon the area with which the market tends to move away and the possibility of a real estate bubble. Looking ahead to next year, this sector will continue to grow at a good pace and prices will continue to rise. All the forecasts made to indicate that the increases will move between 4% and 6%.

The prices are around Rs 1,200 to 4,500 per square feet in new construction of apartments in Hyderabad.  By 2019 we can expect the growth experienced in some area such as Gachibowli, Hitec City, Miyapur, and Kondapur. Obviously, due to the high infrastructure developments, the locations increase at a higher rate and others in which the increases will be smoother.

Purchase and Sale

In the year 2018, good figures have obtained in terms of sales transactions and most of them have been made on new homes. According to the latest data from the Real Estate market, many residential purchases were made 4.8 per cent in 2018. The demand for residential properties is expected to grow in 2019, reaching more than 4.8 per cent compared to last year transactions.

The market for new housing continues to have a significant weight due to the fair and transparent functionality among the new housing prices and transactions. One of the main reasons why the sale of homes has experienced an unstoppable escalation in 2018 is with the introduction of RERA in real estate many buyers believed in fair transactions and realised the purchase of property is the best possible and secured long-term investment.

Projects

Residential demand will continue to grow next year and, despite the fact that the sector responds with advances. Many reputed builders are launching new properties with modern and luxurious facilities to suit the resident's lifestyle.

The residential properties are built with luxurious amenities include lift, swimming pool, yoga & meditation hall, 24 hrs security personnel, children's play area, car parking, gym/fitness centre, municipal drinking water, clubhouse, jogging track, basketball court, cctv surveillance, multipurpose hall, solar fencing, power backup, indoor games, cafeteria, cricket pitch, and many more recreational facilities.

The trending projects for sale in Hyderabad with modern facilities include EIPL Apila, Muppas Alankrita, Muppas Indraprastha, Hallmark Vicinia, NCC Urban Gardenia, Green Grace Aurora Block, and EIPL Rivera. One of the most important challenges for next year in real estate is to achieve a certain balance between supply and demand. We would foresee that little by little, and the real estate sector will be approaching that point of equilibrium with respect to the production of new housing.

In 2018, capital values in Hyderabad grew at a faster rate, due to their lower price base compared to the Tier 1 cities. Prices are expected to remain stable in 2019 too. The residential asset class cornered a large share of investments in the Hyderabad this year. Implementation of major Government reforms and infrastructure developments will make Hyderabad residential realty more transparent. Steady and excellent investments will continue to be seen in the residential real estate market in 2018 - 2019.

What are The Future Prospects?

As of 2018, the construction activity in the residential building segment continues its positive path. The authorised new construction permits for residential use reached 14% over the previous year. In 2018 to 2019, the figure is expected to stand at more than 15% compared the previous year.  If the trend continues, the growth level of housing will be much higher.

The constant development in the residential market in last year has made a strong growth of the real estate market. This, boosted by optimistic projections and a high degree of security in the assets, has transformed this field into one of the favourite niches for investors.

However, the following list is the most important advantages of entering this sector. 

Benefits of Investing in Properties

Ease of Financing

One of the main facilities presented by investing in property is the varied offer of existing financing options. The banks are willing to finance a large part of the total amount of the investment comprising an investment, reaching even 90% of coverage through mortgage loans.

Immediate and Constant Income

Investing in properties for subsequent leasing generates immediate rents. They support personal finances month by month, and can even be used to pay for the same dividend.

High Profitability

Although it is true that profitability varies according to the type of property acquired, real estate investments present high annual rates of return. For example, the apartments generally have return rates of around 5% per year, which means that the investment pays for itself in a period of approximately 20 years.

Increase in Equity

Once the mortgage loan is paid, the property becomes fully owned by the owner, generating a specific and inheritable heritage for a lifetime. This heritable heritage implies permanent cash flows for a family, ensuring a consolidated economic base. Also, there is the possibility of generating added value to the properties through extensions and remodelling, increasing the value of personal assets.

More Convenient than Saving

An investment in savings accounts is subject to macroeconomic fluctuations. For example, it is not strange that there are periods when inflation exceeds the rate of return of an investment in a savings account, which translates into a real decrease in assets.

No Devaluation

The current Hyderabad, real estate market, is constantly growing. This fact becomes especially noticeable if one analyzes the powerful evolution of prices in recent years. Also, the value of properties fluctuates along with inflation, so that the value of assets is avoided by this factor. In short, properties tend to increase their value, having 

Do you want to invest in Hyderabad real estate?

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By: Shailaja K