Wednesday, December 16, 2015
Hyderabad Puppalaguda–Narsingi cluster to witness 41% price appreciation by 2020
Knight Frank India today launched the second edition of its Residential Investment Advisory Report 2016 for the Hyderabad market. This report identifies the top investment destinations in Hyderabad for the next five years (till 2020) and also reviews the performance of the previously recommended destinations.
The Puppalaguda–Narsingicluster is currently priced at `2,900 per sqft and is expected to touch `4,100 per sqft by 2020.
Strong demand and restricted supply, coupled with proximity to the employment hubs of HITEC City, Kondapur, Kothaguda and Gachibowli, are the primary reasons for the emergence of this cluster as an investment destination. This is the most affordable residential cluster within a 15–20 minute commute to the prime employment hubs. Additionally, 10 million sqft of office space is expected to be added in the next five years, which would create incremental employment of approximately 125,000. This is likely to further support residential price growth in these locations.
Uppal and L.B. Nagar in the east and Falaknuma in the south are also expected to see significant improvements in terms of connectivity through the metro; however, locations with comparable prices in the west will prove to be strong competition, as they are in close proximity to the western employment hubs.
According to Dr Samantak Das,“Our analytical focus was primarily to understand the state of the subject market’s connectivity with important locations, and the social and physical infrastructure facilities available currently and in the foreseeable future. The prevailing prices in Hyderabad are the lowest among all the frontline cities of India. Excellent connectivity and well-developed infrastructure have ensured that residential prices in most locations have remained in a similar price band. However, we have identified the Puppalaguda–Narsingi cluster as the best investment destination in Hyderabad, as it is the only location within a 15–20 minute commutable distance from the employment hubs of the city at an average price of `2,900 per sq ft. We expect prices in this cluster to appreciate by 41% till 2020.”
According to Vasudevan Iyer, “Despite a slowdown in the residential market, there is positivity in the outlook.The end of the political storm has brought aboutplenty of stability, leading to positive sentiments. Withthe commercial space shaping up extremely well, residential is set to follow. I would strongly recommend that investors look for locations with potential in terms of fetching returns as well as with sound infrastructure in place as in the case of the Puppalaguda–Narsingi cluster, and the supply constraint will surely encourage price growth in the future.”