Hyderabad Carving its Niche as Indian Real Estate Hotbed

BY Realty Plus

When it comes to real estate in India, Hyderabad generally features down the order in the list which features big names like NCR, Mumbai region, and Bangalore. However, the city has been one of the fastest-growing real estate markets in the country, even defying the crisis triggered by the pandemic.

In major micro-markets in Hyderabad, prices have increased at the rate of 4-6% annually, in spite of the pandemic, as demand continues to soar. Hyderabad’s recent growth in real estate demand is rooted in a range of important factors such as its improved liveability index, large-scale infrastructure projects, the state government’s stimulus to nurture entrepreneur systems, and the city’s growing reputation as a state-of-the-art technology & innovation hub.

Hyderabad is one of the largest IT, ITeS, and technology markets in India, attracting both indigenous enterprises as well as global giants. Hitec City in Hyderabad, which spreads across Madhupur, Gachibowli, and Kondapur, houses a host of major IT companies including Infosys, GE, Genpact, IBM, Cognizant, etc. The Genome Valley, which is spread across a sprawling 200 sq. km. has been developed as one of the largest biotech and pharma manufacturing & research townships in the world. It houses a host of pharma, biotech, and chemical enterprises including Dupont, Sanofi, Aurobindo Pharma, Biocon, Beyers, Novartis, and Johnson & Johnson. The genome is also home to more than two dozen biotech research centers and institutions.

Hyderabad is also a favorite destination for US-based large tech companies. Apple, Google, Amazon, FB, etc. have a strong ground presence in the city. In 2019, Amazon unveiled its largest international campus in Hyderabad with a capacity of 15,000. Boeing, in collaboration with Tata, has set up a manufacturing unit for Apache helicopters in the city. The city is also counted amongst the top entrepreneurial powerhouse in the country with around ~ 7000 registered start-ups. The efficient regional funding ecosystem, plenty of state-backed accelerators, and start-up programs alongside affordable human resources make Hyderabad a prolific ground for start-ups to flourish.

Steady Acceleration to Infrastructure Growth

The Telangana state government, in conjunction with its central peer, is giving a huge push to infrastructure growth and development in Hyderabad. The Hyderabad Metro is the largest metro project in the world developed under the PPP model. The 1st phase of the project is nearly complete and connects Miyapur and Nagole. The 2nd phase will connect Gachibowli with the airport. The metro project will be cohesively linked with city railway and urban transit lines to give enhanced logistic facilities to the residents.

The state administration has also proposed a Light Railway Transit System (LRTS) between Kukatpally Housing Board (KPHB) and Narsingi. The green logistic system will be linked to Hitec city and financial city, thereby offering an easy commute to the residents in the region.

Under a Strategic Road Development Plan (SRDP), Hyderabad is also developing new state highways, flyovers, underpasses, and link roads at an unprecedented pace. The total budget of the SRDP is around USD 4.1 billion. The DPR is ready for the regional ring road, a 340-km-long road that will connect various National and state highways. Recently, new lighting facilities have been deployed across the Outer Ring Road (ORR) in the city.

Real Estate Demand Witnessing Notable Rise

Backed by a growing employment market and accelerated pace of infrastructure development, Hyderabad’s real estate is growing at a staggering pace. The city outshines other contemporary cities such as Pune and Bangalore in terms of rate of absorption and inventory overhang.

The city is marked by steady absorption, which has remained undeterred, even during times of the pandemic. The state is relatively affordable in comparison to other metros. There are ample options in the INR 60-80 lac range. Even in the well-developed micro-markets like Gachibowli, Miyapur, Kukatpally, there are plenty of projects available in that sweet spot.

The city has a well-developed retail infrastructure alongside plenty of international schools and healthcare facilities, which boosts the overall livability.  Ikea opened its first-ever store in Hyderabad, which further underlines the retail potential of the megacity. There are plenty of high streets and specialty stores, which is further augmented with a strong e-commerce presence.

In the times to come, Hyderabad’s residential market will continue to move upwards, stemming from strong fundamentals. The city will also play a pivotal role in India’s overall market revival. The cosmopolitan vibes, MNC culture, thrust to start-ups and a large migrant population will continue to drive the market in a positive direction. As Hyderabad is gaining momentum, NRIs and professionals from other metros are also shifting their base to the city. The market is hitherto end-user driven, but going forward there will be ample space for investors as well as average property prices are moving in an upward trajectory.

Tags : Hyderabad Carving Niche Indian Real Estate Hotbed Hyderabad’s residential market IT ITeS technology markets Gachibowli Miyapur Kukatpally MNC culture Sampangi Siva Prasad Associate Vice President ( AVP) 360 Realtors Hyderabad