The supply and demand for 3BHKs in the City of Nizams is inching a new high with every passing year. While in cities like Delhi and Mumbai, people are struggling to buy a compact 1 or 2BHK unit, residents of Hyderabad still prefer large-sized homes. As per PropUrban research, out of the total 2,984 units launched in Q1 2017 in the city, nearly 49 per cent of the supply was of 3BHK configuration, closely followed by 2BHKs with 41 per cent supply.
So, what are the reasons for this?
Well, this is largely because the property prices in the city are relatively lower when compared to other metros. Further, the overall price difference between 2 and 3BHKs is not so significant as in other cities. The icing on the cake is that unlike its other southern counterparts where capital values for residential realty have gone up substantially over the years, Hyderabad still has enough room to grow.
Another interesting trend is the inclination towards owning land, which was also seen to be significantly higher in Hyderabad when compared to Bangalore and Chennai. This can be attributed to the fact that denizens still prefer to build their own homes rather than buying an apartment unit. The city also saw maximum new launch supply of villas in comparison to its other southern counterparts.
Increased purchasing power is another reason behind the choice of format. Competitive property prices, increased office leasing activity in 2016 and robust infrastructure growth over the years has positioned Hyderabad as one of the most active southern residential markets in recent times. In fact, the new year (2017) began on a positive note with the first quarter seeing uptake of more than 1.3 million sq. ft. office space in the city. With consistent growth of IT/ITeS coupled with the entry of several e-commerce and multinationals, the income earning capacity of the city has taken a giant leap, ultimately increasing the spending capability.
Understanding Property Sizes
A closer look at city data indicates that though Hyderabad has the lowest unit size in 1BHK configurations (525 sq.ft.), the average size of 2, 3, and 4 BHK units are significantly higher than its other southern counterparts. For instance, the average size of a 3BHK unit in Hyderabad is nearly 30 per cent higher than that in Bangalore. And the average size of 4BHK units is 30 per cent higher than that in Chennai.
As far as the prices are concerned, based on the new supply, the 3BHK units were priced anywhere between Rs 2,900-6,500 per sq.ft. while for 4BHK units, the average range was Rs 3,100-6,500 per sq.ft.
Where can one find them?
The larger units were majorly skewed towards Western part of the city that is largely dominated by the IT/ITeS establishments, followed by markets in the South. Few popular micro-markets are Kokapet, Gopanpally, Kismatpur, Appa Junction, and Manikonda in the West, and Maheshwaram and Adibatla in the South.