In order to measure how stable and successful the real estate market is, we compare how much demand and/or sale is for self-use or if a property is purchased for investment purposes.
More than half of the residential sales in Hyderabad, a city where prices tend to be lower than in other metropolises, happened in the price range of Rs 25 lakh to Rs 50 lakh.
According to a report by Knight Frank Research, which utilized data from the Telangana Registration and Stamps Department, this percentage increased by almost 20 percent in the last year.
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The increase in real estate sales can be largely attributed to the growth of the industry in the state, as well as to a rise in disposable income and the demand for homes among genuine buyers.
“Over the years, prices have increased substantially and incomes have also gone up simultaneously. These factors have led to an increase in buyers who can afford homes. In this price range of Rs 25 lakh to Rs 50 lakh, the majority of sales happen at the higher end. Some areas have even properties where a 2BHK is being sold for as much as Rs 75-80 lakh. In the future, I anticipate the majority of the sales taking place in the Rs 50 lakh to Rs 80 lakh segment,” says G Ram Reddy, national vice-president, Credai.
According to Sandip Patnaik, MD of JLL India Hyderabad, the rise in sales for the above-mentioned price range is because of salary hikes and a ‘talent war’.
In a ‘talent war’ scenario, Patnaik said it is the first time in the last twenty years that the IT sector has seen such a huge hike in salaries. Companies are racing to retain talent by offering huge salaries.
As a result, salaries have increased by almost 50 per cent to 300 per cent. In the last year, disposable incomes of buyers have gone up, and they are investing that amount in real estate, Patnaik added.
According to the report, the highest sale was for 1,000 to 2,000 square foot units, with 2,000 to 3,000 square foot units experiencing a marginal rise. About 72 per cent of the total sales were for units between 1,000 to 2,000 square feet.
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