Hyderabad has witnessed a surge in demand for commercial and residential properties. According to CBRE India’s report titled ‘The comeback of Hyderabad’, ‘Hyderabad is regaining prominence, as one of the leading destinations for real estate in south India. Political stability, the state government’s proactive policies, growing occupier demand, improved infrastructure, quality educational institutions and the availability of a large talent pool, have helped bring back attention to the city’s real estate market.’
Experts agree that the city’s growing IT/ITeS and healthcare sectors, and improved business opportunities, have contributed to the growth of residential real estate across segments and micro markets. Hyderabad is also attractive, vis-à-vis property rates in the top residential real estate markets across India, which ensures that homes are affordable for buyers across segments.
Top property locations in and around Hyderabad
According to Deepak Porayath, business head – residential (south), Mahindra Lifespace Developers Ltd, west Hyderabad’s residential appeal has remained consistently strong, owing to its proximity to IT/ITeS and BFSI hubs. “Areas adjoining hubs like Hitec City and Gachibowli, are emerging as preferred real estate destinations. Kukatpally has also witnessed strong residential sales momentum, with those employed in the IT/ITeS sector looking for homes in the vicinity with quality features and amenities,” adds Porayath.
Property prices in Hyderabad have a high likelihood of appreciation and commercial activities have also gathered significant momentum.
“Almost 93% of the inventory that is under construction, is in the north-west and the western part of Hyderabad. It includes attractive areas like HITEC City, Kondapur, etc.,” points out Anand Narayanan, president – sales, marketing and CRM, Purvankara Projects Ltd.
However, these markets are witnessing oversupply, which is good for the end-user, from an investment perspective, he adds.
“In areas other than the west and north-west, there is inventory scarcity. The south and south-west part of Hyderabad will benefit the most, as this is where the IT/ITes investment zone II is coming up. Rajendra Nagar, Shamshabad, PVNR Expressway, etc., are the areas that will see huge opportunity in the near future. All these areas have excellent infrastructure and connectivity in place,” says Narayanan.
Commercial leasing rates have also gone up by almost 40% to 50% in three micro markets and it’s just a matter of time, before residential real estate rates start picking up. Consequently, it is a good time for the people to invest, maintains Narayanan, adding that buyers should select tier-1, high quality developers to reap maximum benefits.
Future prospects of buying a home in Hyderabad
Experts point out that Hyderabad has consistently been rated as one of the best Indian cities to live in. It is one of the few cities that have demonstrated sustained growth in residential sales and new launches, over the last couple of years. There have been reports of large IT MNCs setting up their campuses in Hyderabad, which could fuel the demand for residential properties. The upcoming metro is expected to further enhance Hyderabad’s attractiveness, as a real estate destination.