Talk about realty hubs that have reasonable property rates along with good ROI and there is Hyderabad – the next IT hub of India. Attributing to its strong fundamentals like none other, the city has, for most years, managed to remain among the front runners alongside other metro cities like Bengaluru and Pune. The Hyderabad real estate market has had healthy dynamics in terms of demand, supply, as well as price and the trend, is expected to continue in the coming years as well.
With that being said, the inevitable question lies – What steered the tremendous growth of Hyderabad’s realty sector?
Studies by Knight Frank have revealed that the watershed moment for the market was in the year 2014 when the new government came to power, ushering in considerable stability in the political atmosphere which in turn led to a stability in economy as well. Another major catalyst for the growth and development of the Hyderabad real estate market is the IT boom.
IT coupled with infrastructure steering Hyderabad’s real estate growth
The burgeoning IT sector has led developers to take up more commercial projects and start creating more office space. The rate at which the city has taken up commercial space in the past few years is so accelerated that today, Hyderabad is among the top global centres of IT. From tech giant Microsoft, Google to Amazon, a number of US based mega-corps have established their operations, owing to the industry-friendly practices and environment that Hyderabad has created for itself over the years.
Additionally, the city’s transportation connectivity is phenomenal. With the development of outer ring road, commuting to distant areas has become a lot more convenient.
The expansion of commercial and IT hubs, robust infrastructure and burgeoning employment opportunities have led the residential real estate sector to grow into unprecedented heights as well. Large scale residential projects have seen an increased number of investments pouring in. In fact, the city offers the best affordable housing close to the prime locations having all the necessary amenities – for which one has to pay a hefty sum if it were in other metro cities.
However, the realty tycoons have also had a major hand in driving city’s real estate market towards a favourable environment that it is in today. Coming up with one better project than the other, bearing customers’ needs at the forefront all the while keeping the price at bare minimum, it is the top builders that have allured property investors not only from India but around the world.
Listed below are some of the key builders in Hyderabad who are changing the face of the city’s real estate market.
- Prestige Group
- SMR Holding
- Ramky Group
- Phoenix Group
- Cybercity Builders and Developers
That said, what makes these developers gain an edge over others in the city’s realty sector? Over the years, many new builders have emerged while some perished. However, there are a countable few that have made an indelible mark in the market and set a high benchmark for the new entrants. This can be attributed to the kind of strategies they have adopted in undertaking any project, keeping customers’ need at utmost priority majority. Moreover, as baby boomers gradually start fading away, it is mostly the Gen Y people who constitute the key customers in the market and the cohort effect can be seen in the buying pattern as well. However, the top realty players have managed to evolve and adapt accordingly.
The Prestige Group, for instance, has given each city that it has forayed in with an unparalleled experience in the line of malls, townships, hotels, tech parks, luxury villas, etc, thus catering to a wide spectrum of customers. With its every project embedded with the kind of specifications modern-day people would demand, the group has remained among the frontrunners in the list of Hyderabad’s top builders.
However, exhibiting great opulence and luxury, the projects by realty tycoons are too far-fetched for the laymen given their exorbitant pricing. On that note, in recent times, it is the affordable housing sector that is gaining high traction in Hyderabad’s as well as the country’s real estate sector.
Hyderabad real estate trends – Affordable housing the new black?
Affordability is the key factor that is impeding the demands of homebuyers. However, with initiatives pouring in from builders and government alike, the sector is slowly flourishing. While the sales of luxury and mid-budget housing segment has been in a slump with the maximum unsold units, the situation is quite different in affordable housing segment. The year 2019 witnessed a reduction of marginal 1 percent of affordable housing stock and the trend is likely to continue in the coming years as well.
Tapping into the demands of middle-class buyers, builders in Hyderabad are coming up with homes with reduced sizes rather than building large-sized ones. Accordingly, the government is coming up with initiatives and policy amendments to boost the sector. Owing to a robust infrastructure, mushrooming of IT hubs and a major boost in the affordable housing segment, the Pearl City of India has stood out as the only Indian city in the top 20 among 150 global cities in terms of appreciation in residential real estate prices.
Another major trend that is defining Hyderabad’s real estate market is the increased NRI and HNI investments.
The Northern and Western parts of the city are gaining interests from NRIs. While the suburbs of other metro cities are witnessing a lull in demand, in Hyderabad, the outskirts are seeing an appreciation both in terms of capital and sales. With the increment in the exchange rate of foreign currencies, so has the purchasing power of NRIs in the past couple of years.
However, they are mostly eyeing the luxury housing market – penthouses, luxury villas and bungalows. In addition to this, Hyderabad real estate is also being sought after by high net worth individuals who prefer investing in luxury homes for a short getaway or a brief stay during business trips. This has resulted in the builders of Hyderabad establishing realty micro-markets in territories that have previously been unchartered.
As the supply of homes is increasing in Hyderabad, the prices will probably rise by few percent in the coming years, a trend that is seen in other metro cities as well. Notwithstanding this fact, with the market thriving at a swift pace, the city is most likely to still be seen as an affordable market by homebuyers.