Here is an account of how Miyapur has emerged as an upcoming residential corridor in the Hyderabad city.
Current status of the corridor
The major infrastructure project in the corridor is the development of the Metro node at Miyapur. The Miyapur-LB Nagar Metro route is being developed as Corridor-1 with a distance of about 30 km. Miyapur to SR Nagar and SR Nagar to LB Nagar are referred to as Stage-2 and Stage-5, under the overall work plan of the Hyderabad Metro Rail network.
As per latest information, Phase-1 comprising Nagole to Mettuguda (Stage-1) and Miyapur-SR Nagar (Stage-2), will become operational in the first week of June 2016. Operationalisation of this line will build connectivity to the corridor with other residential and commercial areas of Hyderabad. The state government has announced plans for extending the Phase-1 of the Hyderabad Metro.
From the corridors perspective, the Metro line is expected to be extended by a further 13 km from Miyapur to BHEL and Patancheru. The timeline for implementation of this segment has not been declared. An Inter-City Bus Terminal (ICBT) is also planned to be developed at Miyapur. However, the development timeline for the same is not clear at present as the proposal is awaiting some clearances.
The corridor has faced water supply problem in the summer season, when due to low water level in the reservoirs, water supply was erratic coupled with low pressure in the government water supply network. Residents had to take recourse to purchasing water from private vendors. However, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is working on a plan to improve the pipeline work in Serilingampally Circle. This will improve the water supply of the corridor.
Present residential development
The corridor has a mix of apartments and plotted development. Bachupally has more plotted development options because of availability of land in the area. About 65 percent supply in the re-sale segment in the corridor is of multi-storey apartments followed by builder-floors independent floors. The 2-BHK format dominates across property types with a saleable area of 1,000-1,200 sq ft. This accounts for 61 percent supply in the re-sale segment with 3-BHK units having 35 percent share. The 3-BHK units are bigger in size with an average saleable area of 1,500 sq ft.
Miyapur, Chandanagar and Nizampet are amongst the top 10 localities by consumer preference in the city when it comes to purchase of a residential property. Similarly, in terms of consumers looking for rental options, Miyapur is again amongst the top 10 localities of Hyderabad. In terms of price level, the corridor caters to consumer preference in the lower price bracket.
More than 60 percent of supply in the corridor in the resale segment is within the Rs 20-40 lakh bracket. A further 29 percent is in the Rs 40-60 lakh segment. Together, the Rs 20-60 lakh bracket accounts for 91 percent supply in the resale segment. Evaluation of consumer preference in the corridor shows that almost the same percentage of consumers are looking for options within the Rs 20-60 lakh segment. This highlights the price sensitive nature of demand in the market.
The average price level in the market is Rs 3,000 per sq ft. Miyapur and Chandanagar have options in the Rs 3,200-3,400 per sq ft price range, while capital values in Nizampet and Bachupally are on the lower side. The price level in these localities is in the Rs 2,400-2,600 per sq ft range.
In line with general market trend, the price level in the corridor has been stagnant for some time. The overall price increment in all the localities of the corridor has been under 10 percent for the last two years.
Properties available in the corridor
The corridor offers relatively less expensive options for consumers as compared to localities which are closer to IT/ITeS office hubs. Within the corridor, Miyapur and Chandanagar are established localities with higher capital values (sq ft).Bachupally and Nizampet come next. This price differential impacts the budget and BHK format wise spread of options.
More than 50 percent supply is within Rs 20-40 lakh bracket. A further 35 percent is in the Rs 40-60 lakh segment. Together, they account for 89 percent supply. This highlights the price sensitive na ture of the market. Most of the supply in the Rs 20-40 lakh segment is in Nizampet and Miyapur localities. Miyapur, followed by Chandanagar and Nizampet, accounts for bulk of supply in the Rs 40-60 lakh brackets.
In a price sensitive market, the smaller 2-BHK format with an average size of 1,150 sq ft dominates the supply; its small size helps a consumer to keep acquisition cost low. Most of the supply in the 2BHK format is in the Rs 20-40 lakh price bracket wherein Nizampet leads with the highest share of 2-BHK options. The 3-BHK is the second most preferred category and most of it is concentrated in Miyapur. In budget terms, 60 percent of 3-BHK options are in the Rs 40-60 lakh price bracket with almost 75 percent being in the 1300-1700 sq ft size range.
Best sectors to invest in a home
Rental demand in the corridor emanates from buyers looking for residential options close to IT/ITeS office hubs in Madhapur and Gachibowli but cannot afford the options in localities which are close to them. Miyapur ranks high because of its location on National Highway-9 (NH-9) and presence of support infrastructure. It is easily accessible from different areas. Between Nizampet and Chandanagar, the former scores in terms of lower rentals while the latter is a well-established locality. Bachupally is still evolving and suffers from last mile connectivity and hence, the lower demand.
Based on home buying demand in sectors
Miyapur is the most preferred locality as it offers the best infrastructure as well as connectivity. It also has options across a wide price range from Rs 20-40 lakh to Rs 1-1.2 crore. This gives flexibility to the consumers to choose as per their budget. Though, most consumers are looking for 3-BHK options in Miyapur. Most consumers in Chandanagar are looking for 2-BHK format in the Rs 20-60 lakh price bracket. The demand for 3-BHK units is mainly in the Rs 40-60 lakh budget. More than 60 percent demand in Nizampet is in the Rs 20-40 lakh segment and for the 2-BHK format.
Best bedroom configurations to buy
Consumers prefer the 2-BHK format in the corridor from both house purchase as well as rent perspective. It has more than 50 percent share of consumer preference as rent or purchase options. This can be explained by the fact that relatively smaller size of the 2-BHK apartments helps a buyer to keep the overall purchase cost on the lower side. About 84 percent of consumer preference in the 2BHK segment is in the Rs 20-40 lakh segment followed by the Rs 40-60 lakh bracket with only 16 percent share. Almost 65 percent of 2-BHK availability is in the 950-1200 sq ft range and this gives flexibility to consumers to choose and buy. In the Rs 40-60 lakh bracket, 73 percent demand is for 3-BHK segment while the rest is for 2-BHK formats.
Price changes and future prospects
6 monthly change: 1%
Yearly change: 4%
The price trend over last few quarters in the corridor reflects the overall slow market conditions. The price has been flat and has not seen any change over six months or one year. Miyapur Corridor caters to a price sensitive demand-segment which is looking for affordable homes. The purchasing ability of this segment is affected more by slow economic conditions. The sale had declined in the corridor leading to over-supply. But sale over last few quarters has been quite steady. And the price level in some localities has seen marginal improvement. But the overall price level is expected to remain flat or see marginal increase.
Price movement for top localities by consumer preference
The price change in top localities by consumer demand over last quarter has varied across the localities. The price change varied from max of three percent to minimum of -3 percent. Miyapur, Gajularamaram and Pragathi Nagar continued the marginal price increment which they have witnessed over last few quarters. Price trend in Nizampet has been positive for last few quarters. The present price drop could’ve happened by way of correction. The average price in previous quarter had reached a level which was highest over last few years and was not sustainable. Same is the case with Chandanagar.
(Source: Times Property, The Times of India, Hyderabad)