The State of Affordable Housing Market in Telangana!

The quest for a house in Hyderabad has pushed many white collared employees to the city’s outskirts recently. The local developers describe these outskirts and suburbs as “Hyderabad’s growing residential pocket.” These localities have many under-construction residential projects, which promise everything buyers like; spacious homes within desired ticket size, with a gym, multipurpose hall, club house, swimming pool, and the rest.

But these luxuries all come at a cost: The affordable housing section of Hyderabad, all are located at least 30 km away from the Hi-Tec City’s belt. Here’s why.

Developers have shifted their focus to bigger, luxurious homes; especially after the pandemic. They are only launching mega ventures which come with a base tag of around Rs 1.5 crore in the city centres.

With the pool of affordable homes shrinking rapidly, mid-segment buyers in metropolitans like Hyderabad, Pune, Bengaluru, and even Chennai are pushed to the periphery. This is a phenomenon labelled as the ‘Mumbai-fication’ of Indian cities  by industry experts.

According to a recent report released by market researchers, the share of affordable housing across the top seven Indian cities dropped to 20% during the first quarter of 2023. From the total 1.14 lakh units sold in this period, affordable housing comprised approximately 23000 units. This share was close to 40% a few years ago.

An annual proprietary study released in 2022 had also quoted Hyderabad as the most expensive city after Mumbai. The study noted that the home buying affordability level in the city has declined since 2021.

This leaves the IT and pharma professionals with average paychecks, with no other option but to opt for affordable homes. However, houses in the Rs 50 lakh-60 lakh bracket are at least 30-40 km away from city centres. Hence they are also often left in the dilemma to either commute for hours both ways or pay a fortune towards rent to stay in the city.

On a pan-India basis, affordability  of homes worsened marginally for the first time in 10 years in 2022. Affordability levels had improved even during the pandemic-impacted years of, as the government had aggressively cut policy rates to increase liquidity in the highly stressed economic environment.

Real- estate experts believe that once again the government can play an instrumental role in this. They believe that the solution to this disparity in the realty market lies in revising government policies. The need of the hour is for the state machinery to play the  role of a balancer, and not drive up land prices and make them unaffordable to people.

Despite the rise in home prices, home affordability has only marginally reduced in major cities of the country. The reduced affordability index has also been cushioned by a rise in incomes and growths in GDP. This augurs well for the industry and will help the residential market maintain its momentum.

Open plots in gated communities by TMR Group, with their Never Before Ever After Deals are the ideal investment in the peripheries of Hyderabad. While their location near NH-44 and Outer Ring Road allow easy, stress-free commute to the city, the developmental projects in the vicinity allow ample opportunities for growth. Why invest in apartments, when you can get open plots to build your dream home at the same rate?  Visit https://tmrinfra.com/ today for more details.

References:

https://timesofindia.indiatimes.com/business/india-business/what-happened-to-affordable-house-market/articleshow/99527553.cms?from=mdr

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