The “city of pearls” was once a hidden gem yet to be discovered in the real estate market. But it did not take much time to turn the tides as soon as the Information technology sector was introduced in India.
While the old city exudes the memorials of the royalty of the Mughal Empire with several monuments and exquisite architecture, the new city of Hyderabad was formed by the Telangana government to integrate the booming IT sector with an all-encompassing residential zone so as to maintain a healthy work-life balance. With much effort from the Greater Hyderabad Municipal Corporation (GHMC), Hyderabad was finally introduced as a high-functioning city that attracted working professionals from PAN-India and ex-pats as well.
This compounding effect over the last decade has resulted in Hyderabad being the 4th populous city in India. As for the current status, Hyderabad offers a horizontal land infrastructure that can accommodate an expansive residential zone, which isn’t conducive in other over-crowded metro cities. This has encouraged several real estate developers to monetize on this abundant land, as an array of residential projects are introduced in the past decade itself, making it one of the most efficient residential zones.
But how has this real estate market fared in the adverse time of pandemic? According to survey data of 2020, the average price trend in Hyderabad was Rs. 5964 per sqft, with a 6% increase in the past year. The hybrid working model in the past year has encouraged more working professionals to buy a spacious house to integrate their workspace as well. The Interest Rates throughout Hyderabad were hitting a record low, encouraging several new homebuyers. Out of the 8 major residential markets including Ahmedabad, Chennai, Bengaluru, NCR, MMR, Pune and Kolkatta; Hyderabad has topped the housing sales in the last two years itself. So, what exactly is the allure of this city?
The Well-Planned Suburbs
While several IT clusters are spread across Hyderabad, GHMC has implemented a strategic plan to envelop the corporate zones with residential suburbs. Serlingampally, Ameerpet, Banjara Hills, Gachibowli, Kondapur are some of the prominent suburbs located in proximity to HITEC city which is the epicentre of the largest IT hub. This has enabled the residents to enjoy a seamless commute.
With the development of suburbs, the residential zone facilitated the foundation of several schools and colleges in the vicinity. Many of these suburbs boast including top-tier universities like Hyderabad University, Dr. BR Ambedkar Open University, IIIT Hyderabad, Osmania University, and many more. Real Estate developers place their projects such that schools can be accessed easily, also one of the factors that valuate the real estate price of that property.
Quality healthcare facilities are available at arm’s length in these suburbs.
Almost Rs.8000 crores were budgeted towards infrastructure development within a span of 6 years. Arterial roads and link roads are incorporated to reduce traffic congestion. Outer Ring Road is one such prominent link that connects the suburbs to each other and to the corporate sector. The Metro Rail Project is progressing rapidly, with the completion of Phase 1 has substantiated an SPV “Hyderabad Airport Metro Ltd or HAML” by the Telangana govt. In this phase 2, the proposed blue line will connect Raidurg to Rajiv Gandhi International Airport thus providing easy access to the airport with convenience.
Upcoming Projects in Hyderabad
Several Real estate developers are gearing to launch an assortment of projects owing to the high demand for property. Even during the pandemic, the third quarter of 2020 showed a 76% increase in real estate sales. As for real estate investment, a surge in demand has been observed with the NRIs, owing to the steady market. The Q3 turnover has encouraged a 40% increase in the newly launched projects in Hyderabad as compared to Mumbai which showed only a 20% increase. The property price trend has averaged to Rs.5103 per sqft in 2021, with a promising buyers market in 2022.
Aurobindo Realty is one of the best real estate company in Hyderabad that has introduced luxury projects within the suburbs, thus upgrading the real estate standards of Hyderabad. These “Comfort with Glamour” residential apartments of the Kohinoor project are in proximity to HITEC city. While the Regent project is situated in the luscious green landscape of Kondapur.
Such placements allow good rental returns as well thus making it an affirmative ROI in long term with the burgeoning real estate market of Hyderabad.