Property in Hyderabad - Hot Destination for Investors

Property in Hyderabad which had been very silent post bifurcation of Andhra Pradesh is now again optimistic of seeing rosy days ahead. The prospective home buyers who remained sidelined are now having a keen eye on the residential property of the city. Taking into consideration, this changed game; the real estate developers acquired land in the preferred locations of the city and are quite positive that the process would really pick up in the months to come.

Factors driving the positivity amongst the developers are political stability post state bifurcation, forthcoming launch of metro rail project and the boosted commercial space hustle bustle which has helped the real estate market regain its lost momentum. The developers are confident in acquiring property in Hyderabad and are feeling okay to raise the prices as they assume a bolstered demand here as compared to other metros, due to the low valuations.

The western parts of the city which are in close vicinity to the financial district followed by the southern stretch near to the Vijayawada highway are the areas under consideration for buying property in Hyderabad.

The boom in the commercial space activity is also anticipated to influence the residential sector demand from the present levels.

The long political uncertainty over the state partition led to a slowdown in the residential property as many of the buyers held back their plans of buying the property and remained on the sidelines due to lack of clarity. To give a push to this crashing demand, the developers offered attractive discounts on the unsold inventory while a few of them even delayed their launches.

Property in Hyderabad is most affordable amongst the other Tier-I cities of the country. Well-developed residential areas like Kukatpally, Manikonda, Sainikpuri and Miyapur also offer housing projects in the budget range.

Hyderabad real estate market is now ready for an improvement after a long crash due to reasons like global recession and political uncertainty. Multi storey residential accommodations in different price ranges are preferred now due to their availability as per the tastes of the customers. Areas in the western part of the city like Hitech City, Madhapur, Gachibowli, Chandanagar and Kukatpally have seen a rise in the demand due to their easy approachability from the IT hub and also due to other factors like excellent infrastructural facilities, good connectivity and availability of residential properties at reasonable rates. The presence of good amount of migrants specifically in the areas related to IT/ITES have made the rental housing a prominent feature of the city.

The five broad zones for real estate investments are

1. Hitech City–Gachibowli: the well-established and attractive zone with maximum absorption of commercial spaces. It also holds maximum scope for investor growth and capital appreciation with an investment horizon of 5-7 years.
2. Uppal-Pocharam: The commencement of Hyderabad Metro will bring Uppal, closer to the city and will serve as a lucrative deal for many prospective home buyers. It has a scope of substantial capital appreciation over a period of 8-10 years.
3. Miyapur-Chandanagar: This stretch lures budget segment customers who cannot spend on high prices in Hitech City- Gachibowli belt due to its proximity to the Hitech City. This is up-and-coming location with good social infrastructure and roads and has the capacity to grow with developed gated complexes within specific price ranges.
4. North-West Corridor – since the Pharma industry is flourishing in East Hyderabad, this will lead to growth of investments into villa projects on Outer Ring Road.
5. Jubilee Hills-Banjara Hills: These are the city’s most premium locations and the residential prices here are comparatively lower than those offered in suburbs of Delhi or Mumbai.

Hence as the city frees from political influences post bifurcation, it has come up as an encouraging realty markets of the country and factors like low prices and bucked up commercial space activity have even boosted the situation. A popular potential destination of the city emerging as good option for residential investment is the Puppalaguda– Narsingi cluster.

Umesh Kumar is an expert real estate writer. He has around 5 years of experience in Real Estate Market.