Hyderabad has rapidly emerged as one of India’s fastest-growing and most prosperous metro cities. It's not just the commercial sector that is flourishing, but the residential real estate market is also booming. The city has expanded to cover the entire Telangana region and is poised to become a global hub for IT, ITeS companies, and manufacturing firms. The real estate market in Hyderabad shows no signs of slowing down. Let’s explore the reasons behind the growth of Hyderabad’s real estate market in detail.
1. Infrastructure Development
One of the main reasons behind the growth of Hyderabad’s real estate market is the city’s robust infrastructure development. The government has made significant investments to enhance the city’s infrastructure, attracting more people to move to Hyderabad, which in turn has increased the demand for housing.
Key Infrastructure Projects
- Jawaharlal Nehru Outer Ring Road (JNORR): This crucial road is undergoing improvements to compete with Beijing’s 8-bangles Ring Road system, facilitating easier commutes from the Rajiv Gandhi International Airport to nearby cities like Vijayawada, Warangal, Nizamabad, and Adilabad.
- Blue Line Metro Rail Project: The integration of the western and eastern parts of the city via this metro rail project highlights the well-planned infrastructure development. These areas are home to Social Economic Zones (SEZs), Industrial Corridors, and IT hubs, increasing the need for more residential properties as people seek to live near their workplaces.
- Hyderabad Regional Ring Road (RRR) Project: This proposed 4-lane access-controlled road aims to connect neighboring districts, reducing intracity travel time and generating employment and livelihood opportunities outside the main city.
2. Safety and Quality of Life
People want to live in a clean and safe environment, and Hyderabad excels in these areas.
Safety: A report by UK-based Comparitech listed Hyderabad as one of the world’s top 50 most surveilled cities, thanks to extensive CCTV coverage. This enhances the sense of security for residents, making the city more attractive to potential movers.
Cleanliness: In the 2021 Swachh Survekshan National Survey, Hyderabad improved its ranking from 23rd to 13th, and it won the award for the Best Self Sustainable Mega City by the Union Ministry of Urban Housing and Urban Affairs.
The emphasis on safety and cleanliness has made Hyderabad an appealing city for both businesses and residents, thereby boosting the demand for office spaces and residential properties.
3. Cost-Effective Properties
Hyderabad’s real estate market offers cost-effective options, making it an attractive destination for buyers and investors.
Affordable Housing: The city offers gated community flats, plots, and apartments at lower prices compared to other Tier 1 cities like Delhi, Mumbai, Bangalore, and Chennai.
Rental Properties: Rental homes, apartments, and flats are available at lower rents with similar carpet areas compared to other major cities.
The combination of low property prices and high demand contributes to the strong growth potential of Hyderabad’s real estate market, making it an attractive option for investors and homebuyers.
4. Commercial Hub
Hyderabad is a major commercial hub in India, home to many large businesses and industries, which has led to a high demand for office spaces.
Economic Growth
The city’s robust infrastructure and skilled workforce attract new businesses. According to Knight Frank India, Hyderabad saw a 72% increase in office space transactions in the first quarter of 2022, year on year. This commercial growth drives the demand for residential properties as more people move to the city for work.
5. Presence of Large IT Companies
The presence of large IT companies in Hyderabad has significantly boosted the real estate market. The city attracts talent from across the country, increasing the demand for housing.
Major IT Companies
Hyderabad is home to global giants such as Google, Apple, Microsoft, Deloitte, and Capgemini. The thriving IT sector, along with booming industries like pharmaceuticals and biotechnology, makes Hyderabad an increasingly popular place to live and work.
Affordable land and co-working spaces, coupled with the availability of a skilled workforce, drive the city’s economic development, further fueling the real estate market.
Conclusion
Hyderabad’s real estate market is one of the most attractive, profitable, and sustainable investment options in India. The city’s property rates have increased by 11% in the last year, with an annual population growth of 1.5%, driving high demand for space. As more people look to call Hyderabad home, the real estate market is expected to continue booming in the years to come.
For those looking to invest in real estate, Hyderabad offers immense potential. Partnering with the best real estate company in Hyderabad can help you navigate the market and find the best properties to invest in, ensuring a profitable and sustainable investment.
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