Hyderabad as the capital city of Telangana State is emerging as an attractive destination for investments in residential sector. Real estate firms such as Commonfloor.com and Knight Frank India have in their reports had urged investors to invest in residential properties within the fringes of Hyderabad city. The reports do state the investors should not only invest in already well-established markets or localities such as Kukatpally, Kondapur, Hi-tech City, Nizampet etc but also to lay their hands in residential properties in emerging localities or areas such as Bachupally, Manikonda, Narsingi, L.B Nagar, Uppal etc.
Hyderabad on the residential front has seen a 50% growth in new apartment launches that was previously used to be 40% during 2014-15. There is a strong demand for apartments in areas such as Kondapur, Gachibowli and Kothaguda due to the establishment of IT firms that has led to a whopping 37% new supply of plots, layouts at affordable prices/rates during the year 2015.
It is estimated that in the coming five years about 10 million square feet of office space is expected to be added creating an additional employment of approximately 1,25,000 jobs that may further lead to residential price growth in these locations. There are localities in Hyderabad that have shown residential property price appreciation with areas like Shaikpet, Nampally, Narayanaguda, Himayat Nagar, Attapur Ring Road, Gopanpally experiencing price appreciation in the range of 50% to 25%.
There is strong link between a sound infrastructure and residential demand. With the pace of infrastructural development, picking up in these areas the mismatch between demand and supply will narrow down in the coming years. Therefore, it can be said that the fortune of Hyderabad’s real estate sector is closely tied up with the government (both center and state) infrastructure initiatives.
The settlement of Telangana issue has created a demand for Hyderabad real estate market with Hyderabad emerging as the most affordable residential market among the top seven cities of India. Hyderabad is setting new standards along with Indian metros like Delhi–NCR, Mumbai, Bengaluru, Chennai, Pune and Kolkata on residential market front.
With unlimited Floor Space Index (FSI) model in place, the Hyderabad real estate market is seeing huge growth in terms of high-rise luxury apartments especially in areas such as Miyapur, Kondapur, Gachibowli, Uppal etc. The real estate developers are providing facilities such as swimming pools, modern gyms, and children play areas and badminton courts during the construction stage of these apartments that too at lower costs when compared with the prevailing rates in other metro cities like Delhi, Mumbai, Kolkata, and Pune etc. The residential prices in areas such as Madhapur, Kondapur are in the range of Rs.5000 to Rs.6000 per sq ft and can still be considered as unaffordable for an average IT employee.
However, there exist areas or localities as such in East, and South of Hyderabad where the rates are hovering around Rs.3000 per sq ft that may be quite affordable to the IT employees. In totality, it can be said that Hyderabad is still the most affordable residential market when compared with the other top seven cities of India.