Investing in Recently Affordable Property in Hyderabad

Every city has parts of it which are despised and those to who live in such areas woe to live there. Despite the great progress made by Hyderabad over the past few decades it too is not free of such neighborhoods and those who wish to buy property in Hyderabad if they had the option would certainly give such regions of the city a pass. The name of one such locality in the otherwise prosperous city of Hyderabad is Malakpet.

Despite being one of the oldest neighborhoods in the city of Hyderabad, being home to a number of reputed educational institutes as well as being well connected with other parts of the city, investing in a property in Hyderabad located at Malakpet may in the long term be a losing proposition. Considering the size and scope of the city of Hyderabad that has a real estate sector that is among the most esteemed in the country, Malakpet may not have lived up to its potential or perhaps was never given the chance to do so.

Real estate prices at Malakpet have tumbled more than did the Dow Jones on Black Monday in 1987, but whereas the drop in prices in October of 1987 had no great implications for the US Economy that year, real estate prices at Malapert have remained more or less at the same price point to which they had fallen in February of last year. 

The drop in real estate prices over 5 months was consistent and plunging lower then lower still; by the end of February 2015 it had fallen by over 30 percent and if markets reports are to be believed has yet to budge upwards from the price point to which it has descended. This does not bode well for Luxury apartments in Hyderabad located at Malakpet, as once a locality has lost its glitter it’s difficult to regain it without resorting to drastic measures.    

In effect the market is signaling that the real estate market at this locality is on life support or nearly dead, either of these statements could be true considering that there are hardly any developments under construction at Malakpet and no new developments whatsoever in the pipeline. For someone keen to shop for residential apartments in Hyderabad, Malakpet should definitely not be on the menu.

As the proverb goes “every dark cloud has a silver lining”, this may ring true to buyers who wish to make money on a real estate investment. Whether the plunge in real estate prices at Malakpet is the dark cloud and the now ultra-low prices are a silver lining however shall be up to investors to wager their money on.

This part of Hyderabad also has an abysmal livability score so once real estate is purchased here even at such relatively low prices (3,000 rupees per square foot, low, considering it is an old neighborhood in Hyderabad) it would certainly take time for the locality to improve to a stage where it may become appealing as a residential destination and builders in Hyderabad commence with the construction of new residential developments here. Hence if you want to bet on apartments in Hyderabad located at Malakpet sensing that prices are too low and simply have to appreciate then you better have a really good reason for doing so.