Hyderabad is witnessing steady growth in the demand for affordable houses. Affordable housing typically means housing costing barely 60-80 lakhs and located 10 to 20 kilometers away from the main city. Well, the definition and price will change according to the pricing and demand.
But in this price segment, it is tuff to get a gated community or even semi-gated at least. Typically, in Hyderabad, a gated community consisting of 2BHK containing all the amenities may cost 1 crore depending upon the builder and the location.
In the 60-70 lakhs price bracket a buyer can expect a standalone apartment without amenities like a swimming pool or clubhouse. Or a gated community with less carpet area and that too with a low-reputed builder.
Areas like Mokila, Shankarpalle, Bachupally, Shamshabad area and Pedda Amberet are driving demand in the affordable housing segment.
What’s driving the demand?
The main reasons for this transition are
- Unaffordable prices for luxury flats
There has been an increase in the price of luxury apartments in recent years. A 2bhk gated community flat in the main city may cost around 1.2 to 1.4 crore which the same is available for 80 lakhs to 1cr just stepping a few kilometers away. The amenities, as well as the size, are similar but the place of the flat determines the price variation.
The majority of people are therefore looking to move outside the city, despite the risk involved in traveling.
- Rising interest rates
There is also an impact of rising interest rates on this transition. Almost everyone takes out a loan to purchase a house. It is common for the upfront amount to be between 10% and 20% of the property’s value.
Instead of paying huge interest rates, people are actually reluctant to go for a luxury property it seems.
- Leaving the fear of pollution and traffic
The poor quality of air pollution could also be contributing to the fear of diseases causing people to live a life of fear. Generally, pollution levels in cities are extremely high and could lead to an unbalanced lifestyle. On top of that, the poor traffic is also a disturbing one.
How it will affect luxury consumption.
high-interest rates and a change of perception could result in continued declines in high-end sales.
