MEDIA COVERAGE
February 10, 2022
Will home prices skyrocket in the near future?
Mr. Rakesh Reddy, Director, Mint
Larger apartments, more on-premise facilities, market improvement and the rise of the ‘work from home’ phenomenon leading to the need to secure a home with top-notch facilities has undoubtedly increased apartment costs in Hyderabad.
Aparna Constructions raised prices twice last year with a total increase of 8% roughly. Despite this, sales increased by 25-30% in 2021 compared to the previous year. It forecasts an additional 8% increase in overall prices this year, owing to both pent-up demand and rising input costs, which has resulted in higher building expenses.
“Our pricing strategy is determined both by the market rate and what we perceive customers should pay for our brand”, said Rakesh Reddy, Director, Aparna Constructions. “From 2008 to 2015, Hyderabad faced a prolonged down cycle. Home prices were at a lower base compared to other cities. But lately, due to the good performance of the IT companies…, the city is seeing an upcycle.”
Realtors used to give discounts and flexible payment plans during the pandemic-induced delay but that is no longer the case. As sales have increased, some developers have raised their prices. For both new launches and existing inventory, several developers are projected to raise prices by an average of 5-10% this year. The more well-known developers are now looking for higher profit margins.
Rather than deterring potential purchasers, the price increase may appeal to them as an investment. After a long time, there is a ‘fear of missing out’ in the property market.
Some analysts, however, believe that developers should be cautious when hiking prices in 2022. After all, sales have soared, and customers have been drawn in only by the affordability factor.
Read more in the Mint article featuring our Director, Mr. Rakesh Reddy.
