An Overview of Hyderabad's Residential Real Estate Prices

Elements that influence prices

1. Builder Reputation: Renowned local and national builders such as My Home Constructions, Aparna Constructions, and Prestige Group command a high price in Hyderabad. Their projects are linked to better amenities, on-time delivery, and higher-quality construction, which raises demand for rentals and capital appreciation. When compared to properties by smaller, local builders, buyers are frequently willing to pay more for the assurance and brand value.

2. Another important factor influencing price is the Project Location. Because of its closeness to the financial and IT districts, the West Hyderabad corridor—which includes neighborhoods like Gachibowli, Madhapur, and Kokapet—continues to be the most costly. On the other hand, more reasonably priced options are available in eastern regions like Uppal and Pocharam and northern suburbs like Kompally. Property values in these new corridors have increased dramatically as a result of the construction of infrastructure such as the Metro rail and the Outer Ring Road (ORR).

3. Hyderabad's market is diversified, with three distinct segments: luxury, premium, and affordable. High-net-worth individuals are served by the luxury segment, which frequently has prices above ₹2 crore in desirable areas like Jubilee Hills and Banjara Hills. Senior IT workers in the western suburbs are drawn to the premium segment, which costs between ₹1 crore and ₹2 crore. In order to serve a wider range of buyers, builders have recently shifted their focus to the mid-range and affordable housing segments in outlying areas in response to growing demand.

4. In Hyderabad, properties that are ready to move into usually fetch a 15–25% higher price than those that are still under construction. The benefits of this premium include immediate occupancy, no construction-related risks, and GST waiver. However, because of their lower initial cost and potential for higher appreciation upon completion, investors are drawn to under-construction properties from reputable builders in high-growth corridors.

Cost structure

Apartments

The Base Price, the first amount the builder quotes when buying a residential property in Hyderabad, is only the beginning of the overall cost. Per square foot of the super built-up area, this price is determined. Due to the inclusion of numerous additional fees, the final amount a homebuyer pays—often referred to as the Total Landed Cost—is substantially higher. The majority of the city's projects, from luxury complexes to affordable housing, use this multi-layered pricing structure.

The base price plus additional necessary and preferred fees add up to the total cost. These fall into the following general categories:

Standard Additional Charges:

These are mandatory costs associated with the development and amenities of the project.

• Amenities Charges: Usually ranges from ₹100 to ₹600 per sq. ft. and is charged for the development and maintenance of common facilities like the clubhouse, swimming pool, gymnasium, landscaped gardens, and children's play area.
• Car Parking: A fixed cost for a designated car parking spot, which can vary based on whether it is a covered or open-air space.
• Infrastructure Development Charges (IDC): Fees levied for the development of essential infrastructure within and around the project. Usually ranges from ₹100 to ₹200 per sq. ft.
• Corpus Fund: An interest-free maintenance security deposit collected for long-term major repairs or unforeseen maintenance expenses.
• Prepayment of maintenance dues: Usually 2 years of maintenance dues are paid upfront. So you don't have to pay this every month for the first 2 years.
• Legal & Documentation Fees: Charges associated with the preparation of legal documents like the sale agreement and sale deed.

Preferential Location Charges (PLC):

These are optional charges that depend on the specific unit a buyer chooses.

• Floor Rise Premium: An additional cost per square foot for apartments on higher floors. In Hyderabad, this can range from ₹10 to ₹40 per sq. ft. for each floor above a certain base level.
• View-Based PLC: A premium is often charged for units with a desirable view, such as a park-facing, lake-facing, or corner apartment.

Statutory and Government Charges:

• Goods and Services Tax (GST): Applicable at 5% on the total value of under-construction properties.
• Stamp Duty & Registration Charges: Paid to the state government at the time of property registration, amounting to a significant percentage of the property's market value.

Schedule of Payments

Usually there is a predefined schedule of payments. The builder will provide a schedule of payments along with the sale agreement. Example schedule:

Example Cost Break-up

Let's consider a hypothetical 2BHK apartment in a gated community project in a developing suburb of Hyderabad:

• Apartment Size (Super Built-up Area): 1200 sq. ft.
• Base Price: ₹5,000 per sq. ft.
• Apartment Location: 10th floor (with floor rise applicable from the 5th floor)
• Floor Rise Premium: ₹30 per sq. ft. per floor

Here is a sample calculation of the total landed cost:

This example illustrates how the final price of the apartment is substantially higher than the initial base price, emphasizing the importance for buyers to request and carefully review the detailed cost sheet from the builder.

Villas & Row Houses

The pricing structure for villas and row houses is similar to that of apartments. Usually there is a East facing premium and a Corner villa premium. An example schedule looks like this

Monthly & recurring expenses

After your purchase, you will have to pay the following expenses on a monthly basis:

1. Maintenance dues (Paid monthly, quarterly or yearly) - Usually ₹2-5/Sq.Ft per month.
2. Property tax (Paid annually)
3. Electricity (Pay per use, monthly)
4. Water (Pay per use, monthly)
5. Gas (Pay per use, monthly)
6. EMI (If you are taking a loan)

Negotiation tips and considerations

• Builder - The top builders like My Home, Aparna, Prestige, etc have good demand and generally do not have capital pressure. So they are less likely to negotiate. Expect less than ₹200/sq.ft. discount.

• One time payments or lumpsum payments - Some builders offer discounts for one time payments or lumpsum payments (Eg. 50%, 25%, 25% payment plan). But these usually come with risks to the buyer, as your capital may be locked in for a longer period if there are delays in delivery.

• Consider resale units - Resale units usually offer "True" market price. But are available at later stages of construction. You will generally have more options to choose from, but the sellers might ask for more Cash. This practice is against the law, but is common in the market.

• Land owner units - For some communities, the units are divided between the builder and the land owner. You might see some discounts on the land owner units, but they might also ask for more Cash.

• Look for bulk booking discounts - If buying multiple units or with a group, inquire about bulk booking discounts.

• Expression of Interest - RERA regulations mandate that the builder should not market or ask for payment before receiving a RERA approval. Some builders run EOI campaigns before launch to "pre-sell" units. You may register your interest here and get a good deal, but do not pay any money upfront. It's not only illegal, it's also very risky

• Consider the timing - End of financial year or quarter often sees builders offering better deals to meet targets.

• Get everything in writing - Ensure all negotiated terms, discounts, and promises are documented in the agreement

• Don't rush the decision - Take time to evaluate all options and don't feel pressured to make an immediate decision