Lately, the city has been expanding in two opposite directions, the west and the east zone. INNLIVE spoke to a few experts to compare their growth prospects on the basis of select criteria.
Hyderabad's real-estate sector looks like its heading for a positive turn finally as most real estate experts believe in sustainable growth for the city in the years to come. To get a snapshot, we did a comparison between two growth zones of the city, areas such as Kukatpally, Miyapur, Nizampet, Bachupally in the west zone and areas like Uppal, Nagole, Pocharam in the east zone of the city.
It is the most basic criteria to buy a property. The price of any property is defined by the demand and supply, as perceieved by the market. The cost of land in that area also defines the price of a project as the construction cost is more or less the same across similar accomodations in the city. Sumit Sen, director - sales and marketing, Prajay Engineers, says, "Going by the demand factor, the west zone is definitely better as the areas such as Kukatpally and Miyapur have a higher demand than Uppal and Nagole. People are not buying on the basis of promised development till the time it happens.
On an average, a residential property in west zone will cost around Rs 3000-4000 sq/ft whereas in east it's around Rs 2500-3000 sq/ft. So the prices in the west zone are definitely higher than the east as the areas in west are better developed." Venkat Reddy, past-president and advisor, Uppal Builder's Association sees it from a different perspective, "Though there has been a growth of around 30 per cent in the east zone, the prices of property are still lower than the west zone. But the prices might shoot up as soon as the metro rail service starts."
A buyer buys a property based on his requirements, either for investment or for end-use. If it is for the end-use, he should consider various factors such as location, proximity to work place, school, education, healthcare and so on. If he is buying for investment purpose he needs to evaluate the appreciation, risk factors and opportunities. Niranjan, managing director, Srija Developers agrees to this crucial aspect as he says, "Rental returns in west zone are much higher because of the growing demand, paying capacity of customers and the facilities and amenities available in few kilometres radius."
Sen adds some facts to the view, and says "A 2BHK in Uppal can be rented at around Rs 8000-10000/pm whereas in Kukatpally area the rent for the same space and quality will be around Rs 13000-15000/pm. As per the present situation, even if people have to go to work in Uppal they don't prefer staying there."
However Yoganand, chairman, Manjeera constructions, has a different view, "Rather than the location, the rental returns or appreciation depend more on the quality of construction, design value and amenities around. The rate of appreciation is higher in the west zone. Although in terms of connectivity, both the zones are equidistant from the airport and are well-connected to the national highways."
The market for luxury homes like villas and independent houses is growing in Hyderabad. The expansion of the city gave an option to the buyer to invest in a luxury home at almost the same price of an apartment in any posh locality. Venkat Reddy endorses the east zone for luxury homes with his reasons. "One can buy an independent house in Uppal within the budget of Rs 40-50 lakhs in a gated community.
Someone earning between Rs 40,000-50,000 per month can afford to buy their house in Uppal which is not the case in the west zone. The earning capacity has to be much higher as the prices of independent houses are more in that zone." Niranjan has a completely different angle to it as he puts amenities above price. "In a luxury home, buyers are looking for peace, serenity, connectivity to city and airport, malls, major star hotels - all these are majorly spread over west zone. Hence the west zone provides better options through the current malls, hotels, hospitals and schools."
Yoganand supports his view, "The West zone of the city sees more luxury due to its proximity to the posh localities such as Jubilee Hills and Hitech city. People living in these areas are more inclined towards the villas or independent houses." Sumit Sen leaves it an open call for buyers as he adds, "A villa in west zone is starting at around Rs 2.5-3 crores while in the east zone it's around Rs 1.5-1.75 crores. It's up to the buyers to decide if they want to travel more or save more."
An area grows with the amenities around it. "Both the zones have almost same characteristics to be an urban area. The west zone has an edge over the east because it is closer to the financial district and wellconnected to the Hitech City area, also known as the cyber city. The west zone is dominated by the industrial areas whereas the east zone is more popular for business," says Yoganand.
Sumit Sen endorses the west, "Most of the employment is in Banjara Hills and Hitech city areas, so by default the west zone gets better and faster development than the east zone. The west zone has better malls, schools and colleges. However, if the political stability is maintained in the state, whole Hyderabad will see 30-40 per cent of growth in real estate sector."
Even Niranjan seconds his view as he adds, "I would recommend west zone for a number of reasons such as the proposed Miyapur Metro station, proposed Miyapour Bus Body station (one of the largest bus body stations), close proximity to Cyberabad IT Hub, ORR connectivity- which can take you anywhere in the city in just few minutes." However Venkat Reddy sees immense potential in the east and places his bets on the upcoming Metro Rail to change the game, "In March, 2015, the first metro will start from Uppal to Mettuguda which will give these areas great connectivity.
The area also has an international cricket ground where popular IPL matches take place. Many government and private organisations help this zone sustain and give employment to many people. Just Infosys is expected to give employment to 40,000 people in next two years."
Yoganand says, "I will rate east zone better in terms of environment and growth. The area hasn't been established well and thus holds a chance to develop in a planned and sustainable way. The east-zone is well connected to the Warangal highway. This zone also enjoys better water supply due to the Krishna waters.
A lot of planning and money has gone into developing a good drainage system for this area and since the area is not over-commercialised, the pollution is very less." Venkat Reddy adds, "East zone is an industry-free zone; it has more than 600 acres of forest land, which is soon to be developed in botanical parks. The pollution levels are much lower than the west zone."
"I will give 4/5 to the west zone of the city while looking at the growth possibilities I will give 3/5 to the east zone of the city," says Sumit Sen. Venkat Reddy gives 5/5 to the east zone as he recommends east zone throughout all the criteria. "If we have to define both the zones, we can say the west zone is the one which has been developed and established whereas the east zone is the one going to be established and developed. There is some nucleus in the east zone which gives it the potential to grow," says Yoganand as an end note.
No comments:
Post a Comment