Hyderabad: While an increased connectivity is seen as a stimulus to the real estate sector, a new study reveals that it also tends to cap the price growth in core areas of the city.
According to Knight Frank’s India Real Estate January-June 2015 report, “The business districts of Hyderabad are very well connected via the ring roads and the upcoming metro will enhance this further. While this is an excellent factor to promote balanced real estate growth, it tends to cap price growth in the business districts as people move further away from these areas to save on realty costs.”
However, the report also cited that the average per square feet price grew at three per cent and is likely to maintain the growth in the coming six months owing to improving economic sentiments.
Realty body Naredco vice-president R. Chalapathy Rao, however, feels that the prices in business districts like Madhapur will continue to head north.
“With the coming up of metro, people will be relieved of the traffic congestions at locations like Madhapur, which will keep the demand on track and the prices will go up further.” On the possibility of people moving towards city outskirts, Mr Rao cited quality accomodation as the propeller.
The report said that it would take time for a turnaround in the real estate sector.
Knight Frank executive director Gulam M. Zia said, “The realty market is still bleeding as the reforms promised a year back have not turned into policies or laws and it would take at least one year for the sector to show improvements.”
