Cut the coat... is the mantra now

In the changing real estate scenario, the demand for properties in the price segment of Rs.30 lakh to Rs. 60 lakh was high but this segment also face a shortage of supply in the city. Contrary to this, there is an excess supply of properties costing above Rs.60 lakh. And this could reinforce the view that the year could end up as ushering in the concept of affordable housing.

The online real estate portal ‘makaan.com’ which has come out with property trends for the city, in its research publication notes this factor and points out that a high per cent of the property seekers are looking for properties in the range of less than Rs.60 lakh. “Over the past few years, all major developers have been focussing on higher end of the price band which now has fewer takers,” it says while stating that there is a huge oversupply of properties above Rs.1crore.
Movers & Shakers

Trends on property rates brought out by the portal record the prices rising in some areas while in others, they dipping a bit. It categorised Kandakuru, A.S. Rao Nagar, Habsiguda, Medchal, Motinagar, Tellapur and Thimmapur among others as ‘Movers’ that have recorded more than 8 per cent appreciation during the review period, that is June 2008 to August 2008. The ‘Shakers’, locations which have seen more than 6 per cent softening of prices, include Safilguda, Vijayawada highway, Venkatapuram and New Bowenpally.

On the rental front, the demand for rental properties is the maximum in Hyderabad followed by Secunderabad and Greater Hyderabad. And the demand also happens to be maximum from tenants willing to spend less than Rs.10,000 per month followed by the slab of Rs.10,000 to Rs.25,000 per month. A mismatch in demand and supply gets underscored in this aspect with the portal survey putting the supply of properties for rent of less than Rs.10,000 at only 25 per cent against 28 per cent supply of properties for rent in the range of Rs.10,000 to Rs.25,000.

“Due to rising property prices, house owners are increasingly finding it difficult to rent out their properties in the sub-40,000 budget as a result the supply of properties with rentals above Rs.40,000 is more than the demand for those properties in the market,” it says. As part of its nationwide series of events, the Makaan.com organised a two-day property show in the city last week. The show inaugurated by its Business Head Aditya Verma had 20 leading developers showcasing over 100 property options in the range of Rs.5 lakh to Rs.5 crore.