Hyderabad: From Affordable To Costliest Housing Market!

The Telangana government recently stuck gold with the e-auction of lands in Kokapet and Budvel. Kokapet lands became the talk of the town with record revenue as one acre was sold for Rs 100 crore. On the other hand, the Budvel lands recorded big numbers in sales.

While the recent sales shed light on the boom in the real estate sector, it also highlights how houses are becoming unaffordable for people. The costs are increasing at a level that the city is giving tough competition to others.

Popular independent real estate consultancy Knight Frank carried out a study in the country to know the affordable housing markets and the survey was conducted in eight major cities. The report highlighted how affordability decreased in Hyderabad over the years.

As an example of how costly houses have become in the city, Hyderabad is the second costliest market only next to Mumbai. We can understand the situation as Hyderabad surpassed other cities like Bangalore, Chennai, and Pune.

People in Hyderabad are spending as much as 31% of their income to pay housing loans. Households are paying a big share of the amount to clear the dues and this says how costly the market became.

Earlier, Hyderabad used to be one of the most affordable markets in the country. But things changed rapidly and Hyderabad became a costly market from an affordable one now. Having their own house became a far dream for people in Hyderabad.

Usually, poor and middle-class people buy properties spending their lifestyle savings. When the amount is not sufficient, they also go for loans and they have to pay a certain amount from their salaries.

However, there is a second version of this. While the real estate sector is blossoming, the housing sector is facing some issues. In the same report, the consultancy said that there are over one lakh unsold units in the city which increased by five percent.

Talking about the affordable markets in the country, Gujarat’s Ahmedabad was ranked the most affordable housing market among the cities. Pune and Kolkata were ranked the second and third most affordable markets in the country.