Hyderabad: More good news for property developers in Hyderabad as property prices in the city showed an annual increase of 7% in the first quarter of 2022.
The average property rate in the city is Rs. 6000 per square foot. It is the second most expensive in the whole country.
According to a property company PropTiger.com, at Rs. 9,800 per square foot, property in Mumbai is the most expensive in the country.
Meanwhile, house sales in Hyderabad fell by 15% while new supply increased by 92% in the first quarter of 2022 compared to the same period last year.
In the first quarter of 2022, 14,572 new homes were started in the city while only 6,556 were sold during the quarter. Currently, the unsold stock stands at 73651 units.
According to one estimate, the property developer would take 42 months to sell the unsold stock in Hyderabad.
Average Property Price in Hyderabad, Other Cities
Property value in Hyderabad ranges from Rs. 6000 to Rs. 6200 per square foot while in Mumbai it is Rs. 9800 to Rs. 10,000.
Here is the average property rate in Hyderabad and other cities in India.
|Cities||Price per square foot (in Rs)|
Property prices in Hyderabad, other cities likely to rise
Over the past year, developers’ average construction cost has increased by 10-12%, due to rising input costs due to supply-side constraints.
The cost of key materials like cement and steel increased by more than 20% per year in March 2022. These constitute a predominant part of the total cost of construction. So far, developers have been cautious about raising prices as the market recovers from the aftermath of Covid-19. However, developers have now started to feel the pinch of rising costs and have begun to revise their pricing strategy, Colliers said in a report.
“Rising costs will have a relatively greater impact on developers in the affordable and mid-market segments, as they are already operating at lower margins. With wholesale price inflation (WPI) and the cost of materials, which both experiencing double-digit increases, the cost of construction may rise another 8-9% by December 2022,” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.