Hyderabad: Houses in IT corridor become unaffordable for middle class

The prices have jumped by almost 50 percent in five years

Hyderabad: The houses in the IT corridor of Hyderabad have become so expensive that they are now beyond the reach of a middle-class person.

A house in the corridor is now available at a minimum price of Rs. 1.5 crore. If someone is looking for a house in Gachibowli, Financial District, or Kokapet, the price may even reach Rs. 2 crores.

Before the pandemic, it was possible to own a house in the corridor at a price as low as Rs. 70 lakh but now, it has jumped by almost 50 percent.

Reasons behind rise in prices

There are multiple reasons for the rise in prices of houses in the IT corridor. Out of them, two are the major ones. They are the size of houses and the spike in land rates.

As Hyderabad is the second IT hub of India, many MNCs establish their branch offices in the city. Due to the concentration of IT companies in the western corridor, their employees, especially from other districts and states, prefer to reside in the corridor.

Due to surge in the demand, the rates of land are rising enormously leaving no option for the builders but to raise the price of houses in the corridor.

Size of houses in IT corridor

Another reason is the size of the houses. Usually, when the prices of land increase, builders decide to reduce the area of the house to make it less expensive for the buyers.

However, in the case of IT corridor, builders prefer bigger houses thereby making them more expensive. One of the reasons behind the trend is a rise in demand for bigger houses, especially after the pandemic.

Subscribe us on The Siasat Daily - Google News
Back to top button