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Prices rise marginally in Hyderabad’s LB Nagar

LB Nagar or Lal Bahadur Nagar is a commercial and residential hub in Hyderabad. It is located at the crossroads between the main city and the new international airport, which is 32 km away and the driving time is 40 minutes. The locality is well connected by both intra and intercity buses. The closest MMTS station is at Malakpet, a distance of about 7 km; while LB Nagar is the originating point for the Hyderabad metro to Miyapur.

Realty in Hyderabad seems to be on an uptick as the demand for commercial space in this city outstripped supply last year; more than the surge in 2011. This is mainly because a large number of multinational firms have decided to set up base here. Research shows that about 5.6 million sq ft of commercial space was leased in 2016, an increase of 37%, while only 2.3 million sq ft of office space was released into the market.

The big names among those who leased space are Amazon, Apple and Google. The other companies which leased out space in Hyderabad are mainly Information Technology (IT) companies, IT enabled services (ITeS), banking and financial services. These sectors are also actively booking space in properties which are likely to be completed soon. The biggies in these sectors include JP Morgan, Wells Fargo and IT major IBM.

According to reports, these companies are looking at Hyderabad because of the infrastructure constraints and office space saturation in Bangalore. Backed by the increased demand, property owners have increased rents last year.

The natural outcome of this demand would be a surge in demand for residential space in Hyderabad, as these companies are most likely to go on a hiring spree. This would result in a large number of professionals moving to this city who would require housing.

As such, currently the property prices have been holding steady. The city has a low inventory of unsold apartments compared to other metro cities, though many new projects are under construction. Once the entire inventory comes into the market, and the demand for housing remains high, the home prices are likely to appreciate.

Real estate developers are hoping that this would be the scenario as they say that if the prices drop any further, they will not be able to sustain. They are hoping the demonization move by the Government as well as the Real Estate Regulation Act (RERA) will bring more clarity and transparence into this sector.

Real estate sources said that the demand for housing is mainly in the Rs 25 lakh to Rs 75 lakh category and it comes from salaried class. Sources said that RERA will bring in more confidence for the home buyer as it protects them against, delays in construction and handover. It also protects the home buyer from the other dubious practices which developers have over the years honed to a fine art.

In 2016, most metro cities, including Hyderabad witnessed a decline in the number of launches. However, with the demand picking up, the number of launches also might increase. Another important point is that the demand is mainly for affordable housing.

LB Nagar in Hyderabad is a good bet for those interested in getting value for money.

Nina Varghese for IndiaProperty.com

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