Tier II locations in AP no threat to Hyderabad realty: Credai

Residential property prices might rise an average around 5% this year

Hyderabad would continue to attract good interest in real estate activity and is capable of withstanding competition from Tier II locations in the event of state's bifurcation, according to The Confederation of Real Estate Developers Association of India (Credai).

“Due to the imbroglio surrounding the state bifurcation, many new deals have been put on hold. Once the issue gets resolved, we expect renewed interest from all segments in Hyderabad,” Ram Reddy, general secretary of Credai, told mediapersons here today.

According to him, although there wasn’t any notable appreciation here in the last one year, residential property prices might rise an average around 5 per cent this year. In the next nine months, around 10,000 residential units would be launched here, he added.

The average cost of residential property in Hyderabad currently stands at Rs 3,200 per sft. The office space rental in the most sought-after Western part of the city — home to big software establishments — is Rs 40 per sft. This, according to Credai, is 25-30 per cent lower when compared with a similar location in Chennai and Bangalore.

Answering to a query on whether the bifurcation would lead to any pressure on the price and volumes here, Anand Reddy, vice president of Credai, said most of the Tier II cities do not have Hyderabad's distinct cosmopolitan advantage. “The price appreciation evident in the recent times in Visakhapatnam, Vijayawada and Guntur among others was just a speculation and they do not reflect the actual demand,” he said.

The realtors body today announced the launch of Hyderabad Property Show-2014 starting from February 28. Around 60,000 individuals are expected to visit the three-day event.