Without a doubt, it is the season of real estate slump. However, despite all the adversities, there is one Indian city where the real estate market is witnessing unprecedented growth.
Out of the 7 major Indian cities, Hyderabad is the only city where property sales have grown and that too by 32% according to a research by property consultant ANAROCK.
The Economic Times recently reported that Hyderabad, the capital of Telangana, is the only metro city in the country where average property sales increased by 32% in between 2013-2014 and 2017. Average property sales in metro cities like Mumbai, Delhi, Chennai, Kolkata, Bengaluru, and Pune have dropped drastically since 2013-14. The National Capital Region witnessed the highest drop in sales at 68%, while India’s Silicon Valley Bengaluru saw the least drop at 17%. Amidst this country-wide sluggish environment, only Hyderabad real estate market did not disappoint real estate investors.
The government is pushing out initiatives and proactive measures to make Hyderabad a truly global city. A variety of laws are being implemented to improve the ease of doing business. The ‘Telangana State Industrial Project Approval and Self-Certification System’ (TS-iPASS) Act is a step towards that direction, introduced to create a business-friendly environment that will uplift Hyderabad’s status as an investment destination. Besides other industries, Hyderabad real estate market is also expected to benefit from TS-iPASS, as the government of Telangana is sincerely working to implement a single-window approval system for the realty sector as well.
Other factors that are contributing to the real estate boom are –
The outlook of Telangana government is clear as far as developing Hyderabad’s infrastructure is concerned. On the connectivity front, the Jawaharlal Nehru Outer Ring Road is being developed on similar lines as Beijing’s 8 bangles ring road, which would help people navigate in and out of city limits within minutes. The already launched metro rail project also holds high hopes in terms of uniting the eastern and western ends of the city, which house SEZs, industrial corridors, and IT hubs.
The corporate world loves the capital city of Telangana. Besides Indian blue-chip companies like Tata Consultancy Services Limited, Infosys, and Wipro, global heavyweights like Amazon, Microsoft, Apple, Google, and Capgemini are increasingly expanding their base in Hyderabad. Recently, American multinational computer software company Adobe Systems has expressed interest to set up an artificial intelligence centre in the ‘City of Pearls’. With employees coming to Hyderabad from around the world, the city’s residential market is all set to experience a boom. Real estate developers, in order to cater to this demand, are working actively to add new stock to the existing inventory.
Property rates in Hyderabad, as compared to other metro cities in the country, are still affordable. Though property prices in Jubilee Hills, Banjara Hills, and the Central Business District (CBD) areas are relatively high, new and upcoming areas like Kukatpally, Miyapur, and Gachibowli offer excellent investment opportunities. The growing population of Hyderabad is keeping the demand for residential units high and optimistic.
A 2017 report revealed that when the real estate market across the country was reeling under the effects of demonetization and the Goods and Services Tax (GST), Hyderabad saw an increase in sales, as well as new launches of residential units. In just two years’ time, properties in areas like Kondapur, Gachibowli, and Hitech City have seen a price appreciation of 5% to 10%. Industry analysts are of the opinion that the state government of Telangana’s infrastructure push will continue to drive the Hyderabad real estate market, which is expected to post a year-on-year appreciation of at least 10%.
So if you’ve been planning to invest in property and looking for the right market, Hyderabad can prove to be a treasure trove!