real estate market in hyderabad is booming

Is Real Estate Market in Hyderabad Seeing the Start of Massive Growth?

Ever since its birth in 2014, Telangana, the youngest state in the country, has shown positive signs of development, growth, and prosperity.

Not only it has grown steadily at a CAGR of over 19 percent, its realty sector created history last year when it accommodated 6.5 million square feet of office space, primarily driven by the IT resurrection in and around the capital city, Hyderabad.

According to a recent seven-city report, published in The Times of India, the real estate sector in most parts of the country is either totally stagnant or sluggish, but as an exception, the real estate market in Hyderabad is witnessing increased demand.

There are several factors contributing to the growth, such as public and private investments, a flurry of infrastructure projects, and, most important of all, a stable political environment. As believed by many experts, the best, however, is yet to come.

Mission Development

The state government of Telangana has implemented various pro-active measures to attract domestic as well as international investments to Hyderabad.

The most significant step is fast-paced developments, such as creating infrastructure facilities and better connectivity through the Metro, SRDP, MMTS, etc. that improve the overall climate of doing business in the state.

Connectivity has been a constant focus of the state government, which has recently pumped in Rs 669 crore for the 69-km Warangal Outer Ring Road (ORR). The ORR will connect major National Highways to smaller towns such as Mallakkapalli, Kondaparthi, Damera, Rampur, and Singaram.

The state’s participation in the creation of aerospace SEZ, bio-parks, financial districts, the pharma city, IT hubs, and startup incubators, along with the introduction of ICT policy, TS-IPASS, and life sciences policy are also acting as powerful growth drivers.

These initiatives not only usher in growth, they also increase business confidence and investment sentiments. Moreover, the quality of life in Hyderabad is amazingly high. As per Mercer’s Quality of Livings 2017, Hyderabad is right on top for 3 years in a row among all Indian cities.

Over the past few years, it has been observed that Hyderabad’s residential real estate market is witnessing considerably higher demand in all segments, including the premium and high-to-mid-end category, as compared to other metro cities.

Promising Residential Locations in Hyderabad

More than 93 percent of the residential inventory under construction is in the western and north-western parts of Hyderabad.

These areas include fascinating places like Kondapur, Gachibowli, and areas adjoining the Hitec City, all having first-class connectivity and infrastructure in place. These areas, placed on the outskirts of Hyderabad, are rapidly emerging as best-loved real estate destinations for home buyers.

Kukatpally is also witnessing a strong residential demand driven by professionals working in the ITeS and IT sector who are looking for residences with quality amenities and features in the close vicinity of their workplace.

Residential areas alongside Srisailam Highway and PVNR Expressway will also see huge opportunities in the recent future. The southern and south-western parts of Hyderabad will benefit as well, as this is where the IT and ITeS investment zone II is coming up.

Industrial Boom Fuelling Hyderabad’s Real Estate Market

The real estate market in Hyderabad is anticipated to see improved buyer demand, despite the ongoing slowdown in the IT sector, which is a major job creator.

This is mainly because other sectors like manufacturing, defense and aerospace, e-commerce, the banking, financial services and insurance (BFSI), engineering, pharma, and hospitality are all flourishing in the state, making large-sized investments and closing significant deals.

These top-ranked corporates are creating ample job opportunities, which will boost the real estate demand and ensure the stability of the residential property market in Hyderabad. It is prudent to invest in real estate in Hyderabad now.

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