Hyderabad has always been known as a price-conscious metropolitan city in India. Hyderabad has held the top spot, among all Indian metros, in Mercer’s Quality of Living survey, for four years in a row. The city has also scored well across other aspects, including a relatively low crime rate, good schools, good hospitals, low pollution levels and a flourishing job market. With the increase in the number of jobs being created, there is a corresponding increase in the demand for housing and infrastructure.
Employment prospects in Hyderabad
While the city has only recently transformed into a global commercial hub, the ease of doing business in Andhra Pradesh and Telangana, is another factor that has provided a fillip to the infrastructure and real estate markets in Hyderabad. The potential for further growth is still immense.
As more organisations plan to setup their offices in Hyderabad, it is opening up the job market and attracting new talent, from all over India. This surge of population has led to an equally enormous requirement for residential areas. In addition to IT, many other sectors like manufacturing, defence and aerospace, financial services, engineering, pharma and hospitality, are all flourishing in both the states.
Factors that attract property seekers to Hyderabad
Traditionally, Hyderabad has been a popular real estate destination, primarily due to its developed commercial infrastructure. The factors underlying the growth of the realty market, include the presence of good infrastructure, urban migration and the availability of high-value projects with a wide range of amenities.
Over the past decade, numerous projects have been undertaken in the residential space, especially in the high-end and mid-range segments. Hyderabad also has the least unsold real estate inventory, when compared to other metro cities. People are happy to live here, because of the diverse options available for investors and home buyers. The vast availability of quality housing options, also keeps rental prices at a comparatively lower rate, than all the other metros. The fact that the city has a lot of ready-to-move-in homes has also contributed in a big way to the jump in sales of houses.
Infrastructure development in Hyderabad
The Telangana government has also invested heavily in Hyderabad’s infrastructure and connectivity, which improve the overall real estate climate and ease of doing business in the city. In the last three years, the state government has pumped in close to Rs 45,000 crores.
The development of transportation and connectivity routes across Hyderabad, have been crucial. The Outer Ring Road allows easy connectivity through Hyderabad and also makes commuting affordable. The opening of the Hyderabad Metro services has also improved connectivity. The 72-km-long, three-corridor elevated metro rail project, will provide a major boost to the existing urban infrastructure. The Rajiv Gandhi International Airport has good connectivity to Hyderabad’s main commercial hubs and is often hailed as one of the best airports in the world.
Impact of regulations on Hyderabad’s realty market
The implementation of the Real Estate (Regulation and Development) Act (RERA), which empowers the buyers, will further improve real estate transparency. The fact that any deviation from the approved plan, would require the consent of 70 per cent of all the buyers, empowers them and they have also now been given the status of lenders. This factor, along with the fact that the cost of land is less than any other metro city, makes the end-product cost less, thereby, making it favourable for investments.
Hyderabad’s central location in India, gives it an advantageous accessibility to other Indian metros. This makes it an appealing location to set up corporate headquarters. This was the case with IKEA setting up their first store in Hyderabad. The climate is also advantageous for farming, which reduces transportation costs for food.
The booming IT sector in the city, ease of doing business and investments from various corporates, clubbed with the enormous housing options available for all income groups, will help Hyderabad to retain its position as the best metro city, in terms of liveability and affordability. Affordable housing has witnessed healthy demand in Hyderabad. In general, the price range of Rs 75-80 lakhs, is the sweet spot for sales in Hyderabad.
Affordable housing hotspots in Hyderabad along with property prices
|Micro-location||Price per sq ft|
*Data Source: PropTiger
(The writer is director, Aparna Constructions)