Famed as the City of Pearls, Hyderabad is going through a massive infrastructural makeover, making it the best city in the country for investment in real estate. The city which is blessed with a rich history, food and multi-lingual culture is now the preferred destination for national and multinational organizations. And this has triggered a real estate boom in the city.
Hyderabad is touted to be the next IT capital of India, with more and more companies putting down permanent roots in the city. And it has become necessary to provide good infrastructure to drive the metamorphosis the city is going through.
Hyderabad Real Estate segment receives major investment boost
Real estate firms have thus dropped their anchor in the city to be a part of this revolution. And to boost their expectations, the real estate segment received an investment boost of 10,100 crore since the beginning of 2015 till the first half of 2019.
According to a JLL study, the focus is on infrastructure, robust economic growth and development of world-class office and residential assets in the city. Progressive reforms, political stability and excellent real estate climate has goaded investors and occupiers to prefer Hyderabad as the place to set their eyes upon. And the result is showing!
Office segment rules the roost
Reports have shown that the real estate segment in Hyderabad is going through a purple patch. Office, residential and warehousing genres continue to attract a chunk of the investment. The city has surged ahead of top cities in India in terms of net absorption in office. Its share witnessed a growth of 27% in the first half of this year, an 8% increase from last year in the corresponding period.
The office segment is getting augmented by 13.2 million sqft, constituting about 28 per cent of the overall new completions in 2019. And this has resulted in the highest number of completions in the office segment in 2019.
The residential segment has also seen a spike in sales since 2017 as a result of this investment boost. Though fresh launches have been slow, real estate experts are not worrying much as they will pick up with time.
Places to invest in Hyderabad
Hyderabad is witnessing a property appreciation to the tune of 30-40%. IT boom, competitive property prices, increased office leasing, good quality life and vast talent pool have contributed to making Hyderabad as the most sought-after cities in India. Here’s a look at the top investment destinations in Hyderabad.
The main IT hub of Hyderabad, Gawchibowli is surrounded by the Hitech city and is a major hotspot for commercial real estate. Exemplary linkages with all parts of the city, strong social infrastructure, steady property appreciation and affordable housing market makes it a good choice for investment. Prices have gone up to 5800/sq.ft. in 2019.
- Nallagandla: Nallagandla shares a similar picture with Gawchibowli. Located strategically between a vibrant IT hub and BHEL, the demand for residential estate in Nallagandla has spiked. Buying and renting is likely to boom in the upcoming months. Property prices are in the range of 5300/ sq.ft.
- Manikonda: Manikonda is the fastest developing micro-market of Hyderabad, located on the Nehru Outer Ring Road and lies in close proximity to IT and educational hubs including Hitech city, Gawchibowli and Kondapur. Manikonda had massive parcels of land which bodes well for future property development. The area has 50% ready-to-move properties. Prices touch 4000 sq.ft mark here.
- Madhapur: Madhapur is one of the best placed locations in Hyderabad where property prices have appreciated post the establishment of IT and BFSI offices. It has the best social infrastructure in Hyderabad. Knowledge city, VIT Park, Raheja Mindspace, Tech Mahindra Infocity are some of the IT parks that have mushroomed in this locality. Well connected by metro, property prices here come at 6500/sq.ft.
Hyderabad has positioned itself as the fastest growing city in India. It’s well-laid infrastructure, favourable investment climate, skilled talent pool, ample land availability and excellent living standards auger well for Hyderabad. Real estate per se has picked up speed and the future seem to be much brighter.