Who Is Driving the Sky-High Property Prices in Hyderabad?
A Reddit post highlighting the astronomical property prices in Hyderabad has sparked a lively debate among netizens. Many are questioning who can afford these sky-high prices, with NRIs and wealthy individuals being named as potential buyers.
HyderabadReal EstateProperty PricesNrisHigh Net Worth IndividualsReal Estate MumbaiNov 26, 2024
An anonymous Redditor recently posted on the popular social media platform, sharing their bewilderment about the soaring property prices in Hyderabad. The post, titled 'Who is buying all those properties,' has generated a lot of interest and discussion. The Redditor began by expressing their confusion, asking, 'Are property prices in cities completely out of reach, or am I missing something?'
The user shared their recent experiences of looking for properties, both in the city and its outskirts. 'I've been checking out properties lately, and the prices are blowing my mind,' the Redditor wrote. 'Villas (construction not started) in Kollur for Rs 12 crores, 3BHK flats in Tellapur for Rs 2.75 crore, and Prestige City villas starting at Rs 11 crore. Even DSR flats are going for Rs 16 crore!' Kollur, located 35 kilometers from Hyderabad, and Tellapur, a satellite town near the IT hub, are prime locations for property buyers. Prestige is a well-known developer with a presence in multiple cities, while DSR is a prominent Hyderabad-based developer.
The Redditor further elaborated on their frustration, 'I have a decent job and earn well, but these prices seem impossible to reach. Is everyone around earning in crores, or is it just me? Have I chosen the wrong profession, or is this the new norm? I am literally traumatized after seeing the prices.'
The post garnered numerous responses, with many users offering insights and personal experiences. One user commented, 'I bought a house recently and can tell it's the NRIs who are buying it. They buy the property at launch price, which is much cheaper, and then try to sell it at a high price when the market peaks.' Another user highlighted the significant presence of NRIs in the market, noting, 'We have created a WhatsApp group and can see that 80 percent of the numbers are from the US or Europe.'
Another Redditor, considering a career in real estate brokering, shared their shock at the prices. 'I’m going through luxury villa projects in areas like Nallagandla, Bandlaguda, Rajendranagar, Kismatpur, and Shamshabad. The starting prices are around Rs 7 crore, Rs 8 crore, Rs 10 crore, Rs 14 crore, and Rs 14 crore. It’s mind-boggling,' they wrote.
Some users pointed to NRIs, politicians, and corrupt officials as the primary buyers. 'Remember the next 4-5 words NRIs, politicians, and corrupt officials. That’s your answer,' one user stated. Another user provided a broader perspective, 'The city population is around 1.2 crore. At least 1 percent of that would give 1 lakh people who can afford these prices. Add another lakh of rich people from other parts of the Telugu states and a few lakhs of NRIs. I’ve also noticed a lot of HNIs (High Net Worth Individuals) shifting from other parts of Hyderabad to the west.'
These discussions highlight the complex dynamics of the real estate market in Hyderabad, where the convergence of various factors, including the influx of NRIs, the presence of wealthy individuals, and the city’s growth as an IT hub, is driving property prices to unprecedented levels.
Frequently Asked Questions
What are the main factors driving property prices in Hyderabad?
The main factors driving property prices in Hyderabad include the influx of NRIs, the presence of wealthy individuals, the city's growth as an IT hub, and the limited supply of prime locations.
How do NRIs influence the real estate market in Hyderabad?
NRIs often buy properties at launch prices, which are much cheaper, and then try to sell them at a higher price when the market peaks. They also contribute to the high demand for luxury properties.
What is the role of HNIs (High Net Worth Individuals) in the property market of Hyderabad?
HNIs are significant buyers in the luxury property market of Hyderabad. They often purchase high-end villas and flats, contributing to the overall increase in property prices.
Are property prices in the outskirts of Hyderabad also high?
Yes, property prices in the outskirts of Hyderabad, such as Kollur and Tellapur, are also high due to their proximity to the city and the growing demand for residential and commercial spaces.
What can middle-class earners do in this real estate market?
Middle-class earners often find it challenging to afford properties in Hyderabad. They may consider smaller, more affordable options, look for properties further from the city center, or save for a longer period to enter the market.
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