Sky villa is new buzzword in Hyderabad realty market

Hyderabad In the post-pandemic era, several new concepts like walk-to-work, hybrid work and work from home (WFH) have impacted the preferences of homebuyers. Observing the emerging trends, the real estate developers have also started providing more amenities like co-working spaces, where plug and play infrastructure is made available.

To enjoy such trendy world-class amenities, the property investors and homebuyers prefer high-rise luxury apartment projects over independent villas or bungalows. The homebuyers' interest towards duplex, triplex or quadruplex houses has gone for different reasons. Skyscraper, sky duplex, sky mansion and sky villa are the latest buzzwords in the Hyderabad residential market.

The luxury housing has taken a quantum leap in Hyderabad, and it continues to redesign itself, both in terms of price and product. The demand for high-end homes is primarily observed in the heart of the city or amid all office buildings in the western corridor. With about 50 storey high-rise buildings coming up, there are bright prospects for the premium properties in the city.

Five years ago, people used to think that the rates of residential market in the city would not reach beyond Rs 7,000-8,000 per sq ft. In the pre-Covid period, the housing prices never breached more than Rs 10,000 per sq ft, but there is a phenomenal growth post-Covid and the property costs have more than doubled today.

“This trend of luxury housing has started in the city by Jayabheri Properties, which constructed two units per floor in an apartment near the ORR. This was an eye opener for the builders in the city. Some matured developers discovered that there is a market for spacious premium residential units,” said Samson Arthur, Senior Branch Director – Hyderabad, Knight Frank India.

"Unlike Mumbai or any other city beside the sea, Hyderabad has an abundant land and yet skyscrapers are being built here. This shows that there are people have the desire and ability to live in tall buildings and enjoy the aerial view of surrounding lakes. This segment is unhindered as both investors and homebuyers feel that the value of sky villas will go up further,” he added.

Earlier, the wealthy and rich individuals, who wish to live in lavish homes, used to build villas or bungalows in central Hyderabad. These locations have their own constraints. Owing to the skyrocketing land rates, it is not feasible for the developers to build independent houses in heart of the city. They are pushing their posh customers to own sky villas in high-rise apartments.

The end users are also very excited to buy sky villas having luxurious amenities and gated community benefits. Price is hardly a factor for the HNIs and ultra HNIs. Large families want to move horizontally in these 4 BHK flats instead of going up or down in a ground plus two villas. Today, there is requirement for sky villas worth over Rs 20-25 crore also.

Speaking about the demand for high-end properties, Samson further said, “Those who stay in large villas now prefer luxury high-rise apartments. They don't mind affording large units to have a wonderful view from top-level floor in the sky. They are willing to pay a price for it. The present trend is to live in sky villas.”

“The luxury housing in Hyderabad continues to redefine these products with the right features and deliverables by the developers. That is going to command a price. There is a demand for it, and it will be continuing in the city real estate market. We feel that's why some very good developers have entered this segment. They're all looking to create niche products,” he informed.

Due to the upcoming elections, there is a halt in the overall real estate market these days. However, the sales of luxury properties are still happening. After selling 50-70 per cent inventory, the builders are holding the high-end units for better price in some key locations. They are confident of cash flow from the distribution system over the next 4-5 years.

“The land values have gone up almost ten times over the last few years. While selling such lands, the HNIs and NRIs got handsome returns in recent times. They have re-invested their profits in luxury segment of housing,” says V Rajashekar Reddy, General Secretary, Confederation of Real Estate Developers Association of India (CREDAI) Hyderabad Chapter.

“The premium housing is more of investment market. The buyers see sky villas as the safe investments with good returns in terms of resale value and rental revenue. A flat of around 2,500 sq ft in Hitec City is attracting monthly rent of above Rs 1.5 lakh. The rental income expectations are much higher in case of new properties having better amenities,” he said.