Hyderabad Real Estate| Reasons Behind The Exception Growth

Top 6 Reasons behind the Exceptional Growth of Hyderabad Real Estate

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Admin 27 Apr 2024 6,036 Views

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Hyderabad real estate has always been an excellent investment option compared to other cities in India. Since the effect of the pandemic (Covid-19) has fallen off, the requirement for residential properties has increased rapidly. The economy and infrastructure are good due to the solid fundamentals and consumer demographics of the city, which will help revive its real estate market in 2022-23. According to the reports, the prices are expected to increase in the coming days because Hyderabad real estate offers affordability without compromising excellent quality and amenities.

The Coronavirus has changed homebuyers' approach to buying property in Hyderabad. They are much more discerning to get more excellent value from the property, including connectivity, social infrastructure, and amenities. Accordingly, gated communities and integrated townships have been steadily gaining interest from home buyers. News recently reported that Hyderabad, the capital of Telangana, is the sole metropolis in the world.

The average price of the property for sale in Hyderabad has increased by 42% between 2018, 2019, and 2020. The average sales of properties in other metropolitan cities such as Bangalore, Mumbai, Delhi, Chennai, Kolkata, and Pune have dramatically dropped in 2018-19. The National Capital Region witnessed the most drastic drop in sales, at 48% in India, and Bengaluru saw the most modest drop of just 17% during Silicon Valley. Amid this slowing economy throughout the nation, Hyderabad was the exception. The Hyderabad real estate market didn't disappoint real estate investors.

7 Factors Which Actively Support In The Growth Story of the Hyderabad Real Estate Market

1) The Government Support in the Industry

The government initiatives and proactive steps to create Hyderabad, an international city. Many laws are in place to make it easier for conducting business. The Telangana State Industrial Project Approval and the Self-Certification System (TS-iPASS) Act are the first steps in this direction. It was created to create an economic environment conducive to business and improve Hyderabad's reputation as an investment location. Alongside other sectors, Hyderabad real estate market will also benefit from (TS-IPASS). Since it is the state government, Telangana is working diligently to establish an approval system for the real estate industry.

The Telangana State Government has imposed specific regulations that are expected to increase real estate value and facilitate transactions between sellers and buyers. Implementing government policies such as RERA, GST, and the previous Demonetization has worked to benefit homeowners and buyers. It has helped the real estate in Hyderabad.
As well as other regulations among the other regulatory actions such as RERA has stimulated the curiosity of investors who are looking to make investments in the market. This law guarantees transparency in the sale and transaction processes, mandatory registration, and severe sanctions.

Additionally, the introduction of RERA has also enhanced operations significantly within the real estate commercial industry, leading to more job openings in this city. Increased opportunities translate to a greater demand for properties for sale in Hyderabad.

2) Fast-Paced Infrastructure Developments

The future of the Telangana government is quite clear regarding the development of Hyderabad's infrastructure. In terms of connectivity, it is said that the Jawaharlal Nehru Outer Ring Road (JNORR) is being built on the same as Beijing's 8-bangles Ring Road, which will aid people through city limits in just a few minutes. These things tempt homebuyers to invest in real estate, which is why the demand for apartments for sale in Hyderabad has increased in the last few years. The Metro Rail project is also a source of optimism regarding the possibility of bringing together the western and eastern parts of the city. They are home to Social Economic Zone (SEZs), Industrial corridors, SEZs, and IT hubs.

3) A Safe City & The Best Life Quality

From 2014 onwards, Hyderabad has consistently been named the top city in India over Mumbai, Delhi, Bengaluru, or Chennai. It is the most advanced technology center in India. With global giants already established and numerous companies showing a desire to set up businesses in Hyderabad, there is a steady increase in employment. These are the primary reasons for the increased demand for commercial property for sale in Hyderabad. Because there is a Climate index, Cost of living index, Healthcare index, Safety index, and everything else is in line with the very high Quality of Life index.

Let's be honest and admit that every city is secure. All towns have their crime and infractions; Hyderabad is not any different. There are likely to be some unlucky incidents.

According to a media survey conducted in 2017 that focused on women's safety in major cities across the country, Hyderabad was hailed as the most secure town within India that women can live in. Because of its high level of safety and its female IT workforce would prefer to remain within 5-10 km from their place of work without fear of having to commute.

Moving to a new place and feeling secure is typically the top priority for young professionals. Most work in IT finance, ITeS, and sectors in night shifts with no fear of being attacked or threatened. The area is lashed with CCTV cameras and the local police patrol every night to reduce the crime incidents.

4) Cost-Effective properties

Its apartments, rentals, or plots in Hyderabad remains at an affordable cost compared to other developed cities. Some areas located within 10 KM of major IT hubs have the Cost of the property about 4500 sq ft, which is a lot cheaper. This results in an increase in the demand for residential flats or houses for sale in Hyderabad.

Furthermore, the plots in Hyderabad are readily available at a significantly lower price, which has attracted the real estate industry to build and construct apartments in Hyderabad.

The prices for gated community flats in Hyderabad are generally lower than in Mumbai, Delhi, Gurgaon, Bangalore, or Chennai, which has increased the demand for residential rental homes because of the IT workforce that is moving in from cities in the vicinity.

5) The Hub of Commercial Activity

Apart from being a bustling home market, Hyderabad has also proven efficient as a commercial real estate market. According to a study by the real estate market, Hyderabad and Bangalore were the two most actively-operating commercial real estate marketplaces in the third quarter of CY2020. These accounted for 23.7% and 22.9% of pan-India leasing.

According to a different report from the world's largest brokerage firm, Hyderabad commercial real estate market is beginning to show signs of improvement and a solid gross lease of 1.9 million square feet during the period July-September 2020. Net absorption increased by 31% over the previous quarter, to 1.5 million sq ft during the third quarter of 2020. There were new developments of 3.3 million square feet in the city in the period, and Gachibowli and HITECH City submarkets were the top source of new supply.

Must Know about Construction Costs in Hyderabad

6) Large IT Companies, Blue Chip Companies, and the Emergence of Startups

Global giants such as Google, Apple, Amazon Data Center, Microsoft, Deloitte, Capgemini, Genpact, and other blue-chip firms such as TCS, Wipro, and Infosys continue to expand their operations in Hyderabad. The affordable parcels of land and affordable co-working spaces have attracted businesses from all over the world to make real estate investments in Hyderabad. One Plus has announced its largest store globally, opening in Hyderabad shortly.

The creation of these companies and many others has created more jobs available to people all across the globe. With the increasing number of people living in the country, the residential real estate market is expected to expand.

7) Advancement in Infrastructure

Hyderabad is famous for its world-class infrastructure, and this is also a significant reason to increase the demand for apartments for sale in Hyderabad. A recent media report has disclosed it is case that Telangana State has allocated around 63% of the budget for infrastructure and economic development. The development cost included the construction of the suburbs and urban areas and the construction of roads, sewerage, bridges, civic amenities, and real estate. There are other plans for future infrastructure projects for the city, such as the underground drainage system, an excellent road network for connectivity, and a water grid. Two other ring roads join together with an outer ring for an easier commute for the city's inhabitants.

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

Top 6 Reasons behind the Exceptional Growth of Hyderabad Real Estate