Here are some reasons why now is the best time to buy real estate in Hyderabad before prices rise further:
Increasing Demand For Hyderabad Real Estate
Hyderabad has been comparatively unaffected by the nation-wide slowdown over the past few years. The city’s residential real estate market witnessed considerably higher demand across all segments, as compared to other major cities. Hyderabad real estate has room for price appreciation because the city offers affordability and value without compromising on amenities.
Increasing Prices of Raw Materials
Construction costs will increase as allied sectors such as cement, sand, and steel rely on importing raw materials which may see restrictions. This will cause the supply of building materials to decrease and accordingly their price will rise.
Increasing Cost of Human Resources
More support will be required to ensure the health and welfare of workers. Construction costs will increase due to the additional labour maintenance costs, as well as the paucity of workers during the lockdown.
The decreasing value of the Rupee against the Dollar results in inflated prices for raw materials which increases construction costs. Likewise, the depreciating currency value is benefitting NRI investors significantly as investors get more square feet of space for the same amount in the foreign currency. This is an opportune time for NRIs to buy property in Hyderabad.
Supply Chain Disruptions
A significant disruption in the supply-chain of raw materials may force developers to source from alternate markets, which will impact their price and increase construction costs.
Economic Relief Measures
The economic relief measures announced by the Government are extremely positive for the real estate sector at large. The near-term effects of the lockdown will be offset by these relief measures which look to bolster liquidity, facilitate credit flow and ease the pressure of timelines. This will allow real estate developers to recalibrate their business strategies and focus on high-priority operations without additional financial burden. It will also help ease the anxiety of home buyers and ensure the completion of projects. This will keep prices on their upward trajectory.
A Safe Investment
Real estate is viewed as a safe investment. The emergence of an economic crisis only reinforces this sentiment. Owning property elicits a high sense of security when there is uncertainty and turmoil in the financial market. Furthermore, home buyers will largely favour risk-free property investments during this time. There will be high demand for reputed developers with minimal execution risk, even if the property is relatively higher priced. Prices will continue to increase as home buyers will carefully consider the quality of the developer, project, neighbourhood, environment, and amenities.