In the season of gloom, property investors have one destination that will not disappoint them – Hyderabad.
Way before the celluloid blockbuster catapulted the elegant City of Nizams into the world spotlight, Hyderabad had already made its mark on the global realty stage. Statistics go on to validate the city's rise in popularity in terms of living standards, connectivity, social infrastructure, education, and business acumen.
Rising Real Estate
When the property sector was going through a churn in the wake of recent reforms, Hyderabad was the only city to stay resilient. The capital of Telangana is witnessing a real estate boom when property is sluggish in the rest of the country. Among India's seven major cities, Hyderabad is the only city to have seen property sales growth – by 32 percent from the average of 2013 to 2017, according to a research by property consultant ANAROCK.
Alternate Residential Trend
Hyderabad is also on the alternate residential real estate map, a growing trend in this dynamic sector. India's alternate residential realty sector looks at $4.3 billion investment and, Bengaluru, Chennai and Hyderabad account for 25 percent of it, reveals Meraqi's latest sector-specific research report 'Emerging Residential Niche Products'. The report throws light on the potential of the growing alternate residential real estate market in India, analyses investment trends in niche categories like student housing, micro units and senior housing emerging across Tier I cities, and forecasts the future trends in the segment.
A progressive approach to good governance and development is one of the finer points of the Telangana government, which is bearing fruit now.
According to JLL, the proactive government policy and infrastructural developments such as the Hyderabad Metro Rail, strategic road development and elevated corridors boosted the residential property market. With strengthened infrastructure along areas where IT companies have a presence, or creating new districts in the vicinity of Shamshabad, Yadadari Bhuvanagiri and Vikarabad, Hyderabad is sitting on a goldmine of opportunities.
High Living Standards
In the latest Mercer Quality of Living Rating 2018, Hyderabad has held on to its top rank for the fourth year in a row. With a relatively low crime rate and pleasant weather, Hyderabad has been able to retain its position as the top Indian city. However, sharing the same slot is its counterpart Pune.
Residential Housing on a High
Buoyed by positive consumer sentiments and favourable policies, the Indian real estate sector is getting back on track. 2018's first quarter recorded a q-o-q increase in housing sales. With nearly 1,800 unit sales added across seven cities, April saw a 25 percent increase in absorption as against March. Also, new housing supply stock increased by six percent this month alone with developers adding around 15,200 units in April 2018. ANAROCK data indicates that the new housing supply infusion was highest in NCR, followed closely by Hyderabad, Bengaluru and the Mumbai Metropolitan Region (MMR).
The residential segment in the city witnessed robust growth due to being largely end-user driven, the CBRE report states. West Hyderabad emerged as a key residential sector due to the availability of land parcels and proximity to workspace clusters. With a swelling working population and rising disposable incomes, retail activity in the city has gained traction. The city is expected to add almost 3-4 mn sqft of organised retail space in the next two years, which will enhance the city's retail depth.
Commercial Property Uptrend
Hyderabad 2.0 – India's Original IT Hub Continues to Grow, the latest research report by CBRE, underlines the city's metamorphosis into a market to invest in. Hyderabad's real estate market witnessed significant growth after attaining political stability in 2014. Its office stock doubled from 23 million sqft in 2008 to over 56 million sqft by 2017 – a CAGR (Compounded Annual Growth Rate) of 10.5 percent. 2017 witnessed the addition of about 5.2 mn sqft of new office supply, most of which was across the IT and extended IT corridors. With many national highways passing through the city, its warehousing sector has been leveraging its strategic location tag to its full advantage.
Leena Mudbidri, Times Property, The Times of India, Hyderabad