In the past, people’s home buying decisions in a particular city were mostly influenced by their long term plans to settle in the city. However, home buying these days is looked into more as a low risk, high return investment option. Now, if you’re considering investing in real estate in a particular city, you would want to take into account the growth scenario in the said city, while minimizing the amount of spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment-property, beginning with the choice of the city. Today, we bring to you Top 5 reasons why you must consider Hyderabad as one of the best Realty buying cities around.
- 1.Correction in market:
The Hyderabad Market is finally seeing a correction, leaving behind the bad times, reveals reputed real estate consultancy Knight Frank India’s latest report. “The demand for housing segment outstripped supply in Hyderabad in the second half of 2015. As a result, the unsold inventory has decreased. Even office market is in a consolidation mode as the demand for office space also rose in the city. As a whole, the unsold inventory in Hyderabad market has been unwinding, which shows the city realty is on a path of correction,” said Vasudevan Iyer, director of Knight Frank, Hyderabad.
According to the report, Hyderabad office market shifted gears in second half of 2015 by absorbing 3.1 million sq. ft., posting the strongest half-yearly absorption numbers in its history. The reason for growth in office space absorption is that many MNCs see Hyderabad as a commercial and IT office space hub which provides quality space at cheaper prices.
- 2.Investment by Major MNCs in Hyderabad :
Many reputed MNCs like Google, Qualcomm, Salesforce and JP Morgan have acquired large chunks of office space here. Though the situation in the residential market is not as positive as in office space segment, steady demand during last 18 months does point to a possible improvement in residential market fundamentals in coming months. With vacancy levels reducing, even the rental segment is set to witness a growth, much to the relief of property owners and investors in the city.
- 3.Political stability and government initiatives :
Political stability and government initiatives have infused a positive sentiment into the Hyderabad real estate market. Residential markets across Hyderabad witnessed a gradual phase of recovery after a long drawn political unrest which culminated into the creation of Telangana. Weak sentiments had dented the markets for over three years till the bifurcation of the state, leading to an over-supply situation across the city as buyers stayed away during this time of uncertainty. This situation is changing with more MNCs buying large chunks of office space in the city.
- 4.Excellent Infrastructure
The development of Metro with its proposed commencement in a year’s time and other infrastructure projects such as radial roads, inner ring road, outer ring road and availability of Grade-A offices at comparatively lower prices than those in Bangalore and Pune is a benefitting factor for residential real estate in Hyderabad. Hyderabad is to witness soon 20 multi-level fly-overs in the city very soon.
- 5.Affordable Prices
Prices of residential real estate prices in Hyderabad are yet to regain their peak values. It is currently in a consolidation phase, with properties available at attractive valuations. Buyers are increasingly focusing on acquiring properties in the western part of the city (in the proximity of financial district and the IT Hub). It is expected that demand will be higher in the INR 3,000 - 4,000 per sq. ft. segment as majority of them lie along the metro rail corridor and enquiries have been significantly higher for such locations.
With so much of growth and development happening in the city, Hyderabad has once again become one of the most preferred places for investment in real estate in India. By the way, are you investing in Hyderabad? What is it that has attracted you to invest in the city? Please share your reason with us here and let’s get talking!