Hyderabad – A Hub for Residential Homes

Hyderabad – A Hub for Residential Homes

The Indian real estate sector over all is on a bullish phase with foreign investors’ and real estate developers investing in the Indian real estate market. According to the consultancy firm – JLL India, more than $2.2 billion of funds have been raised so far in the current investment cycle. It is expected that more funds/capital would flow into the real estate sector with the easing of foreign direct investment rules. Real estate Investors and developers both foreign and domestic are showing keen interest in investing in top ten cities of India that include Hyderabad which is considered as the most promising real estate markets in the country in 2015.

For realtors, Hyderabad is emerging as the one of the most affordable cities among the Tier-I cities of India. This city is offering a wide spectrum of investible options in real estate with lower property price levels. To prove this point, one can study the report by property consultancy firm JLL India that states that housing sales in Hyderabad rose to 67% to 7,000 units during the fourth quarter of 2014 to the third quarter of 2015 as against 4,200 units in the previous year.

In the affordable residential/housing segment, the city has recorded a good growth with affordable housing projects in the form of 1-2 BHK flats being made available with basic facilities especially on the peripheries of the city. Even the well-developed residential localities like Kukatpally, Manikonda, Sainikpuri and Miyapur segments have residential properties in the budget range of Rs.30-50 Lakh making this city one of the most affordable cities for real estate property in India.

Rising Economic Activity-

The improved economic activity during the last six months due to the innovative policies of Telangana government is bearing fruits with corporate real estate builders making a beeline to invest in real estate market of Hyderabad. The cost of establishment for employees in this city is also making a difference when compared with other metros. For example, in Bengaluru, the average rent for a two bedroom house is more than Rs.30,000 but in Hyderabad it is around Rs.15,000-20,000 per month making this city an attractive option for employees in getting houses on rent within their budget.

The real estate developers are coming back to this city with a significant increase in the number residential units launches that having picked up strongly increasing by more than one and half times when compared with previous year. In addition, the capital values have also witnessed an enormous increase with about five to ten percent increase in year on year basis seeing sub five percent rate of appreciation in Hyderabad real estate market.

There is an incremental activity going on in office space segment with reputed companies like Amazon, Google, Wipro, and TCS among others scaling up their operations thereby creating an enormous demand for office space. This demand for office space would automatically lead to demand for homes in the coming years. Therefore, real estate developers are hoping for a tremendous increase in residential home sales during this year.



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