Hyderabad real estate has recently emerged as one of India’s fastest-growing real estate markets.
The city’s historical beauty has attracted real estate developers and purchasers. Yes, property sales in Hyderabad increased by 49% in 2023.
Hyderabad reached a five-year high in terms of the value of home sales during the first half of this year, with a total of Rs 58,481 crore coming in. Within June 2024 alone.
The city reported sales of residential properties with a total value of Rs 4288 crore.
The city registered a strong 2.5 million square feet (MSF) of office space leasing, which was 11 percent more than the average quarterly leasing activity of 2023. This finding pertains to the leasing of office space.
Demand for Office Space in Hyderabad Real Estate:
Additionally, the Banking, Financial Services, and Insurance (BFSI) sector has been a driving force behind the demand for office space.
This sector accounted for 36% of gross leasing, followed by the information technology industry, which accounted for 23% of gross leasing.
On the other hand, operators of flexible workspaces contributed to as much as twenty percent of the leasing activity, which is about twice as much as the average volumes recorded in the previous year.
Specific Trends Seen in India Real Estate:
It would appear that the expansion of the Hyderabad Real Estate market is a reflection of the trend in real estate throughout major cities like as Delhi-National Capital Region (NCR), Mumbai, Bangalore, Chennai, Pune, Kolkata, and other cities.
All these cities are seeing a growth narrative.
Several factors, including rising customer aspirations, fiscal policies that are controlling economic inflation, and regulatory measures implemented by RERA are restoring people’s trust in the real estate market.
Various government policies that promote the real estate segment, are contributing to the nationwide real estate boom.
These factors include the growing economic prosperity and the associated maturing of purchasing power among Indian citizens.
On the other hand, the following are some of the developments that are specific to Telangana and/or Hyderabad that have contributed to the city of Pearl becoming an attractive destination for investors and developers.
FDI In Hyderabad Real Estate:
Generally speaking, Telangana has been doing an excellent job of demonstrating to investors from across the world the potential that it possesses as an investment location.
Due to this, the state has been able to increase its foreign direct investment (FDI) inflows to a total of USD 3 billion, placing it among the top five states in the country in terms of receiving investments.
Businesses such as Amazon have shown a significant amount of interest in the city of Hyderabad. This has created additional economic value and the generation of additional high-quality job opportunities.
The establishment of top companies typically has increased in the value of commercial, retail, and even residential sectors in Hyderabad real estate
Enhancement of the business environment in Hyderabad real estate:
The increasing foreign direct investment is indicative of the corporatization that the city has undergone over the years.
Hyderabad used to be known for its food and cultural history, but now it’s a busy city that leads to India’s technological progress.
Since this change happened, the city’s real estate market has gone up a lot, and buyers from all over the world are interested.
The development of the city’s IT industry has driven its economic expansion. There was a stunning 31% growth in information technology and IT-enabled services in 2022-23.
According to reports from the government. Increasing the size of the information technology ecosystem has had a positive impact on the urban environment of Hyderabad.
The information technology industry provided a boost to office leasing and encouraged residential construction in the vicinity of important business hubs.
The emergence of high-net-worth individuals based in Hyderabad:
This is proof that high-net-worth people (HNWI) are becoming increasingly interested in Indian real estate, as seen by the spike in premium and luxury real estate.
On the other hand, Hyderabad has done an outstanding job of cultivating its gem of high-net-worth individuals.
According to research on the International Industry that was carried out by Henley and Partners, as of December 2022, Hyderabad has seen a growth of 78% in the number of millionaires.
This placed the city in tenth position internationally in terms of the growing number of high-net-worth individuals.
Bengaluru was the only Indian city to figure higher on the International list.
This expansion is a reflection of the growing economic prosperity and improved buying power of residents.
This has resulted in the formation of a local reserve consisting of “individuals with investable wealth valued at one million dollars or more.”
Good Business Policies in Hyderabad Real Estate:
The economic climate in the state of Telangana has been improved as a result of several measures implemented by the state administration as well as those implemented by the central government.
Companies in the manufacturing sector have benefited from the passage of the Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) Act, which has been recently passed.
The statute is believed to have been a contributing factor in the state attracting an investment of Rs 3.30 lakh crore during the previous decade.
Increasing real estate consumer trust:
The introduction of RERA has resulted in a more stable and transparent environment for real estate transactions, which is a positive development from the point of view of the real estate industry.
There has been an increase in investor confidence and a simplification of corporate procedures in the industry.
As a result of these initiatives, particularly noteworthy is the fact that housing developments in Hyderabad have attained an exceptional completion rate of 74%, which has instilled trust among both investors and property purchasers.
Summing up on the Robust Hyderabad Real Estate Growth:
More than 1.3 lakh new housing units are expected to be added to the city over the next two to three years, according to forecasts.
This indicates that the city is anticipated to see significant expansion in the years to come.
In 2024, it is anticipated that this expansion will generate a large amount of cash from the sale of property.
Positive developments have also been observed in the office and commercial real estate sectors.
During the first half of the year 2024, the city was responsible for 31% of the total office space that was bought by Global Capability Centres across the country.
In the not too distant future, Hyderabad real estate will continue to be a magnet for real estate developers and investors due to the city’s robust fundamentals and favorable market conditions.