HYDERABAD REAL ESTATE OVERVIEW

Hyderabad is a place known for its affordability and quality of living. Many prospective buyers are eager to settle in Hyderabad due to its demographic features and growing technological developments. Despite the slight upswings in the current real estate market due to the rise in home loans, as per the Hyderabad Residential Property report for June-22 released by Knight Frank India, Hyderabad’s overall outlook remained positive as 17,074 properties were registered in Hyderabad in Q2 2022, a 9.1% YoY increase.

In response to this, the Chairman and Managing Director of Knight Frank India, SHISHIR BAIJAL, confirmed that “the end-users in the Hyderabad market continue to be drawn to home purchases encouraged by factors such as a stable economic environment, rising household incomes, and amenable home-loan interest rates. While the rising construction cost has had an impact on the more price sensitive categories, its influence on the upper segments was limited, keeping the market robust.”

Influence of Government Laws and Infrastructure on Real Estate market

The expansion of the city by IT commercial developments is evident. Many companies like TCS, Wipro, Infosys, Microsoft, Google, etc are expanding their business operations in Hyderabad. This makes this city a promising place for future development. Plus, IT employees who are working in these companies bring a lot of prospects for the home residential market. But due to the recession in Europe and other countries, real estate sales have been still in the present market.

The government laws such as GST, REAR, and the demonetization that was implemented previously benefitted the city’s real estate growth.  However, due to recent GO 69, and GO 111 laws. There has been stagnation in the present real estate sales in Hyderabad.

Therefore, experts confirmed that the overall market is stable and the city is going to claim its shine back in the future soon.

PLOTS OR VILLAS OR FLAT- Which is better

The decision always comes down to individual preference. However, as the experts say, plots are said to have a higher return on investment (ROI) than houses. One of the major reasons for this is the limited supply of land in big cities.

The prices of plots have been enormously increased due to various factors. It’s not affordable for a common man in the present real estate market. And, according to the Knight Frank India report. The residential units in the price band of Rs.25 lakh to Rs.50 lakh. It constituted 55 percent of the total sales in August 2022, which is an increase from a share of 37 percent in August 2021.  

So, although price corrections have been a bit higher in apartments compared to villas or plots due to the current real estate market the overall profits are stable.

If you can afford it! Some real estate gurus suggest taking HMDA land and holding it for 6-7yrs to sell as a villa or independent housing. It is also seen as highly profitable. But the point is can you wait for 6 yrs? You have to think for yourself!

Where to Invest?

It is always preferred to prioritize the west over the other parts of Hyderabad for purchase. But the case is being shifted now towards the south and eastern parts also.

For instance, we can see Shadnagar in the southern part of Hyderabad where we can hear the word ORR (outer ring road). Due to this ORR, the connectivity of shadnagar to the city is easy. It is also central to the IT, Hardware, Industrial, and Pharma companies of the city along with various educational institutions all around the neighborhood. And it also offers varied ranges of plots, flats, and villas of different sizes and prices. So, investing in it is never a bad option.

Similarly, the Warangal highway where the government is focusing on setting up high-level industrial corridors is also a great area to invest in real estate.

And there are many other places like pattancheruvu, miyapur, kompalli, and Kondapur that are also great choices for investment.