How Did Hyderabad's Real Estate Market Become the Costliest in South India?

In terms of quality of life and cost of living, Hyderabad is one of the best places in India to call home. However, Hyderabad is the second most expensive real estate market among India's eight major housing markets, after Mumbai.

After seeing a rapid price increase over the previous eight years, Hyderabad residential real estate has eclipsed other significant housing markets in south India to become the most expensive housing market in the region. In the city, known as the pharmaceutical capital of India, the average price of new homes and unsold inventories ranged between Rs 6,100 and Rs 6,300 per square foot.

Many more potential property buyers have started moving to Hyderabad and setting up residence there with their families. Hyderabad has been included in lists of "the best city to live in" for some years.

An Expanding Real Estate Sector

Hyderabad's costs have consistently risen since Andhra Pradesh was divided into two states in 2014, along with investor interest in the city. It's fascinating to observe that expenses increased even during the lag caused by the Coronavirus. There has been a massive demand for residential property in the City of Nizams, where skyscrapers cohabit with historic minarets and domes.

The main reason is that the southern town's cost of living is higher than that of other Indian megacities. Hyderabad has been awarded the best location to live in India by Mercer's Quality of Living Survey for the fifth consecutive year.

This is adequately considered in the income forecast for the June region of 2022. According to data, 7,910 things were purchased in Hyderabad from April to June 2022, compared to 2,430 items in the same period in 2021, as employment balance drove demand for residential real estate.

Opportunities for Youth

The presence of blue chip and multinational corporations in the city creates new work prospects, and more young people are eager to move to Hyderabad. Hyderabad has been steadily advancing in real estate purchasing and selling despite the expanding pandemic across the nation.

All eight of the nation's largest cities, including Delhi, Bangalore, and Mumbai, are said to have entirely slowed down on building housing and commercial complexes; nevertheless, Hyderabad has made the most progress, 90% in the least amount of time. Over the last six months, nationwide home vacancies have plummeted by 43% and sales by 54%. But 64% of sales were reportedly made in Hyderabad.

Growth of Supporting Infrastructure for Real Estate

The city of Hyderabad has begun to build infrastructure to enable industrial expansion. All significant sectors of infrastructure development, such as roads, flyovers, and cityscape, as well as bettering water supply, are being prioritised. The Hyderabad development plan has completed eight significant projects since 2007.

The Telangana Government's proposed metro rail project received approval from the Union Ministry of Urban Development. After Phase I was finished in 2019, the Telangana government declared that Phase II would see the establishment of an SPV called "Hyderabad Airport Metro Limited (HAML)", which was jointly promoted by HMRL and HMDA. To make travelling to the airport more convenient, the projected blue line will be extended from Raidurg to Rajiv Gandhi International Airport.

The Nehru Outer Ring Road (ORR) in Hyderabad, an eight-lane ring road expressway with a perimeter of 128 kilometres, is one of the noteworthy developments in terms of connectivity. Hi-Tech City, the Nanakramguda Financial District, the International Airport of Hyderabad, Knowledge Park, Hardware Park, Games Village, the Singapore Financial District, and the State Police Academy are all connected.

The City That Welcomes Investment

Due to the good returns on investment, Hyderabad is a popular investment destination. Hyderabad is a city where infrastructure has consistently outpaced demand. The city draws significant investments in the residential and industrial sectors because of its excellent socioeconomic infrastructure. It meets the requirements of both the global IT industry giants and IT professionals.

Many major companies, like Blackstone, Brookfield, and Acendas, have already invested in Hyderabad and many more plan to do so, showing that investors have a good outlook on the city. Hyderabad ranks first in construction, absorption, price, office, retail, hotel, investment transactions, and transparency, which is the reason for this. Due to the market's favourable characteristics, prices increased.

Conclusion

The city of Hyderabad is being pushed to develop into the new Silicon Valley by the Hyderabad Urban Development Authority. The Telangana State Government, as well as the Andhra Pradesh State Government before it, have made significant efforts to build the city's current infrastructure.

At a time when the demand for large homes is increasing as a result of the permanent work-from-home policies established by a large number of organisations in the wake of the pandemic, Hyderabad is also providing the best solutions for clients looking for extra space. Rising production costs are another element contributing to the increase in the price of real estate in Hyderabad, along with the growing desire for large, lavish residences.