Five Reasons To Invest In Hyderabad's Property Market

Five Reasons To Invest In Hyderabad's Property Market

Five Reasons To Invest In Hyderabad's Property Market

The ongoing liquidity crisis has impacted Indian residential realty negatively and the trouble in the non-banking financial companies (NBFC) has further aggravated the situation. However, with deposit rates at an alarmingly low level now, keeping liquidity with oneself hardly makes any monetary sense. In such a scenario, what could work best if you were to go in for property investment? Hyderabad's realty market is the answer and we give you five reasons why.


1.The price rally

One will be disappointed if they assess India’s prime residential markets primarily on the basis of price appreciation. While the prices might not have gone down, in majority of the markets, there hasn’t been any appreciation either. This is not what is expected of an investment by a buyer. In the same time frame, in the past, buyers have seen real estate values multiplying. A buyer should understand well that those days of high ROI won't be back, at least in the foreseeable future.

It is on this parameter that Hyderabad seems to be defying a national trend. Property values here are seen appreciating consistently even as they depreciate in other major markets. PropTiger.com data shows realty values in Hyderabad in Q2FY20 have increased by 15 per cent in the past one year, the highest registered in any city during the period. Average rates for apartments in Hyderabad currently stand at Rs 5,200 per square foot (psf).


2. Luxury housing stock

Makaan.com numbers show that half of the over 32,000 unsold stocks in Hyderabad are luxury homes, worth Rs 75 lakh each and over. Also, because of the demand in the premium homes segment, 58 per cent units launched in Hyderabad during the Q2FY20 were luxury homes, numbers indicate.


3. No long delays

While delays have become an inherent feature of housing projects across big markets, Hyderabad is comparatively doing better, thanks to the positive investor sentiment in this residential market.

Makaan.com numbers show over 15,000 housing units have been delayed by five years in this market as compared to over two lakh homes in the Mumbai region.

In addition to better sales numbers keeping liquidity coming, builders launching smaller projects here also help in keeping the construction work rolling. Better sales have also resulted in Hyderabad, having the lowest inventory overhang in the country at 13 months.


4. Better livability

In Mercer’s Quality of Living Survey-2019, the pharmaceutical capital of India retained its position as the top city for the fifth time. While migrants continue to prefer the city for its low rents, an inclusive culture and expanding job markets; expats love it for the safety it provides. When they make a list of the most polluted cities in the world, Hyderabad is generally not seen obtaining any dubious distinctions either. That speaks volumes in favour of this old city.


5. Riding on the metro wave

It would be unfair not to give the city’s Metro network its due in helping Hyderabad realty grow. Apart from providing its citizens with a more convenient and faster mode of commute, the Hyderabad Metro, which started operations in 2017, also has a positive impact on the city’s real estate. As it expands to give the city an even better connect, it promises to add value to its already prized immovable assets in the future.  

Last Updated: Fri Dec 13 2019

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