Real Estate of Hyderabad

The past decade was all of a roller coaster ride for India’s real estate investors. With many factors affecting the growth of real estates which had a long term effect on the market. Few notable factors like demonetization, RERA, GST, and the more recent NBFC crisis coming into the picture. The Real Estate sector’s growth prospects have taken a dip during recent months. Oddly, though, the real estate space in South India managed to flourish during a time when larger markets in other parts of the country struggled with declining sales. Hyderabad the fastest developing city of India has shown better growth on real estate than the other Cities of India

You know what Hyderabad is the only major city of India where property prices increased by 17%  on a year-on-year basis. This golden run has continued since the State bifurcation in 2014, activities in the Hyderabad’s real estate space have doubled only recently; in the last couple of months, to be precise. Industry estimates suggest that annual commercial leasing in Hyderabad has gone up from 4-4.5 million square feet to 9 million square feet, trailing only Bangalore, where the average is 13 million square feet. 

Infrastructural improvements have also shown an effect on the increased inflow of working professionals, along with the government-led initiatives towards the ease of doing business that has worked in favor of Hyderabad as well as its real estate sector. Moreover, with tech giants like Amazon and Apple making their way into the City of Pearl, adding further strength to the Hyderabad's Real Estsate  

New launches propelling the growth of commercial office space 

Home to numerous tech start-ups and global firms, Hyderabad is billed as the next IT hub of India. Last month, Amazon opened its biggest campus outside the US in this city. Located in Hyderabad’s financial district near Hi-Tech city, the campus covers an area of over 9.5 acres and is expected to house 15,000 employees. This is, in fact, amongst the largest centers of an MNC in India. Hence, it’s no secret that commercial office projects are driving investments in real estate and realty players are bullish on the Hyderabad market. Even outstation developers are currently eyeing the local market, thereby indicating excellent growth potential. 

Higher demand for rental housing 

Hyderabad is a preferred destination for both students and salaried professionals. Every year, thousands of youngsters migrate to this city for better career prospects. Sample this, one-third of Amazon’s total India employee base works from Telangana, of which the majority resides in Hyderabad. This explains the growing appetite for rental housing and therefore more investment opportunities for property builders and home-owners alike. Besides corporate executives, college and university students are seeking rented accommodation facilities. In addition, the emergence of co-living space providers has further bolstered the state of the residential real estate in Hyderabad. 

Reasonable pricing of properties

Property prices in Hyderabad are relatively lower when compared to other metropolises like Mumbai and Bangalore. And, this is what gives this city a competitive advantage in terms of real estate investments. The city has always been an IT/ITeS and R&D destination, but more avenues are now being explored. The residential and retail real estate, for example, is witnessing a massive uptick in terms of sales. Subsequently, co-living players are foraying into Hyderabad’s market, carving a new niche for themselves. Thanks to these abovementioned factors, Hyderabad is fast turning into a top real estate investment destination, presenting unparalleled opportunities to realty developers, buyers, and even operators.