Five years ago, Hyderabad’s real estate market growth was sluggish with projects holding back and realty buyers hesitant about their buying decisions. This was mainly due to Andhra-Telangana bifurcation issue and the aftermath of separate state creation which raised questions on the future of the “IT-Pharma” city’s real estate growth prospects.
With new government in place in the newly formed state, there have been many signs of economic and political stability. This came as a huge sigh of relief to the real estate developers in Hyderabad who have started coming up with new projects with greater enthusiasm.
Past 5 years have been great for the real estate market of Hyderabad and the surrounding districts of the city. We would like to present you five reasons to invest in Hyderabad today:
Lowest Prices In the Country
When compared to all other metro cities in the country, real estate prices in Hyderabad are quite low. Hyderabad real estate prices reached its lowest during the formation of the new state. As the market in the city is yet to see its peak growth, investing today will increase the value of property manifolds in the future. For Instance, the National Housing Bank Indexing which tracks the movement of prices of properties in major cities, indicated a continued growth of 2.3% in Hyderabad during the last quarter of 2018. But real estate players still believe that the Hyderabad market is still under priced and can see a sharp price rise in the next five years.
Lowest Vacancy Rates
Apart from the political stability having an impact on the property values, Hyderabad also recorded lowest vecancy rates(under ~10%) especially in the IT and financial corridors of Madhapur, Gachibowli and Kondapur, which led to increase in prices. Given the current situation many developers are gearing up to increase the supply in residential and commercial spaces of the market.
Improved Public Infrastructure
The state government has invested heavily in infrastructure development of Hyderabad in the past five years speeding up the completion of Hyderabad Metro, and many flyovers/underpasses – both of which have greatly improved connectivity in the city. Apart from the existing Outer Ring Road (ORR), the central government has recently agreed to build a regional ring road in partnership with the state government encircling ORR and connecting major towns in the surrounding districts. Once completed, the regional ring road will free up the traffic issues in the outskirts and roads around SEZs (Special Economic Zones). As public infrastructure investments continue, real estate prices will see an upward revision.
Expansion of the City
The panchayat areas surrounding the ORR are yet to witness real growth. The areas in the outskirts of Hyderabad (part of GHMC) such as Mankhal, Gaddi annaram, Uppal Kalan, Serilingampalle, Patancheru and Rajendranagar have affordable lands to develop. Both commercial and residential development along these areas is aiding in the expansion of the city. The Outer Ring Road (ORR), the Metro Rail and the MMTS network improve connectivity and reduce travel time to various parts of the city. Areas surrounding the International Airport at Shamshabad mandal are adding to the increase in demand for plots in Hyderabad. Thanks to this rapid demand, the city is now being viewed as a fastest growing investment destination.
Rapid Increase of New Projects
In the past couple of years, Hyderabad has seen many developers announce a large number of new projects with residential and commercial offerings for sale in the city that are suited for buyers across all price ranges.
With Hyderabad GDP per capita growing at +8% (highest in the country) and state’s economy growing stronger, alongside game changing regulatory reforms of Real Estate Regulatory Act (RERA) and Goods and Service Tax the prospects for real estate growth in the city look promising.
Before the prices begin to skyrocket, the time to buy a dream property in Hyderabad at affordable price is ideal right now.