The prices of residential properties in Hyderabad have remained stagnant for quite some time.
After witnessing a massive rise until a few months ago, the market seems to have hit a plateau.
About 4–5 years ago, property prices were increasing by nearly 10% per year, while incomes were rising by only around 5%.
At that time, many builders aimed to make huge profits by targeting high-net-worth individuals and the ultra-rich. They started constructing premium apartments.
Initially, many NRIs invested in such properties. However, interest among them has now declined.
They have realized that investing in Indian real estate often yields poor returns, given the rupee’s depreciation against the dollar, high capital gains taxes in India, and the difficulty of repatriating funds back to the U.S. without additional taxes.
Around 65% of high-end home buyers used to be NRIs, with only 35% being domestic HNIs, a sign of heavy dependence on overseas investors.
With all these factors, experts say there won’t be any immediate rise in prices, but neither will there be a steep fall.
The wisest approach, analysts suggest, is to stay calm, assess whether buying a home is truly necessary, contemplate for a year or so and negotiate firmly with developers.
There’s ample inventory in the market, and builders are willing to sell at marginal profits. As many experts say, smart negotiation is the real key to intelligent home ownership.