Hyderabad has emerged as one of India’s fastest-growing and most prosperous metro areas, experiencing a real estate boom driven by both commercial and residential properties. Its status as the capital of Telangana further contributes to its prominence. Positioned as a global hub for manufacturing, IT, and ITeS companies, Hyderabad’s real estate market shows remarkable resilience and continues to thrive. Let’s discuss the factors behind a surge in projects undertaken by real estate developers in Hyderabad.
How the Market is Expected to Shape Up?
Predicting the real estate market’s trajectory for 2023 is challenging, but experts offer insights into its potential direction. While the market is expected to remain favorable for sellers, a slight increase in mortgage rates may lead to more available properties. Yet, this shift won’t be significant enough to transition from a seller’s market to a buyer’s market, even with a potential increase in the number of homes on the market.
As Hyderabad displays its resilience, the city’s real estate sector witnesses a rise in new project launches. Compared to the financial year 2019-20, new introductions have increased by nearly 10%. The mid-to-affordable segment, encompassing properties ranging from Rs 30 to 40 lakhs and Rs 40 to 70 lakhs, sees around 55% of these new projects. The favorable business environment, facilitated by initiatives like T-iPass and ICT Policy, will strengthen the ease of doing business in Hyderabad/Telangana, positively impacting the real estate market.
The Real Estate Trends In Hyderabad
After the Covid-19 induced bans were lifted, Hyderabad’s construction activity rebounded swiftly, making it one of the first cities in the nation to do so. This achievement significantly contributes to the growth of the city’s real estate. Interestingly, 3 BHK homes remain the preferred choice among buyers, though 2 BHK units are also in demand, primarily driven by affordability rather than preference. The pandemic has instilled renewed confidence in real estate, leading many to upgrade from their pre-COVID preferences, with some previously considering 2 BHK units now contemplating 3 BHK options.
Hyderabad boasts a healthy number of new takeoffs, with unsold inventory standing at over 35,000 units in the financial year 2020-21. Despite this, the city’s list overhang of 30 months remains relatively short compared to other regions across the country. The revived enthusiasm among home purchasers resulted in approximately 12,000 new residences being introduced in the city during the last quarter of 2020, specifically in October, November, and December.
The Commercial Real Estate Investment Market encompasses a diverse range of businesses across various economic sectors. Its trajectory is closely intertwined with shifts in the global economy. Elements like land and property development, retail shopping centers, industrial and office spaces, apartments, and multi-family homes exert substantial influence on a company’s strategy, performance, and profitability depending on its focal areas.
As real estate companies in Hyderabad navigate the ever-evolving landscape of the commercial real estate market, adaptability and strategic planning will be crucial to ensure sustained success and growth in this dynamic industry
