Hyderabad has transformed into a major real estate destination in recent times. Hyderabad has benefited immensely from overall political stability and the renewed government emphasis on building infrastructure like the metro railway network. The realty growth in the residential space is expected to be very good with multiple regulations under RERA for boosting overall customer sentiments in the industry.
The overall forecast for real estate in India is steadily turning positive with economic growth in recent times and Hyderabad should be the foremost growth driver in the future. Investments on student accommodation units should generate anything between 10-12% in terms of returns in the city while investing in warehousing facilities should offer returns between 10-14%. Investing in co-working spaces is another segment which is also witnessing growth along with the residential real estate category.
Major commercial hotspots like Gachibowli, Madhapur, Hi Tech City and the Financial District are seeing steady residential real estate growth in surrounding areas with several digital, IT and ITeS and e-commerce companies setting up shop in these locations. The metro railway and elevated corridors should boost real estate tremendously in the next few years along with renewed political stability. Residential real estate segments saw growth for H1 FY2018-19 as per reports with unsold inventory going down by a whopping 40% on a year-on-year basis and sales of 8, 000+ housing units. New launches increased by 82% as well for September 2018 as compared to September 2017.
The booming IT sector in Hyderabad is aiding job growth and influx of skilled professionals into the city which is naturally increasing demand for housing and commercial space alike. Hyderabad presently has vacancy levels of just 8% in terms of Grade A office supply. Commercial realty investments are delivering returns anywhere between 7-8% which is attractive to investors along with 6-8% of capital appreciation over a period of 5-10 years. All of these factors augur well for the residential realty space in the country.