IT Policy, Infrastructure May Push Hyderabad Realty
Traditionally recognised as a commercial market, the residential segment of Hyderabad is gradually gaining prominence. The city of Nizams, in fact, has become a hot favourite among high net-worth individual (HNI) investors owing to the plushest and attractive neighbourhoods that it houses. With two corridors of the Hyderabad Metro project scheduled to be completed by end of this year, the property market is expected to see some growth. The residential market is driven by a mix of both investors and end-users.
Low cost of living
Healthy end-user demand and sufficient availability of budget homes have made Hyderabad one of most affordable housing markets among Tier-I cities. Similarly, the rental market is also replete with pocket-friendly options. The city has, in fact, been recognised as one of the top Indian cities for quality of living, as per Mercer’s Quality of Living Report 2016. The parameters basis which the ranking was done include political and social environment, healthcare, public services, recreation facilities and natural environment.
Growth of IT
Hyderabad is a major destination for IT and ITes players. Of late, the city has been giving stiff competition to the likes of Bengaluru with the emergence of attractive office spaces for investments. There is a sizeable migrant population in the city comprising of IT/ITes professionals which directly influences the rental housing market in Hyderabad. The city is steadily transforming into a global business city as many MNCs and global businesses are eyeing to set base here. Localities such as HITEC City and Gachibowli continue to be a hotspot for IT and ITES professionals.
The Hyderabad Metro Rail (HMR), which is said to commence by 2018, is a rapid transit system that shall give a boost to the connectivity. The regions near the metro stations are expected to witness considerable price appreciation. Several prominent developers have already purchased land parcels along projected development locations, where prices of properties are presently in the affordable category but predicted to rise in future. Around 20 flyover projects encompassing outer ring road, radial roads, inner ring roads, expressways and MRTS are estimated to give a push to the city’s realty growth.
Hyderabad is also donning a new look in terms of social infrastructure, especially retail developments as many global brands are planning to set foot here, thus benefiting the real estate business. Industry experts predict that the total organized retail space in the city will expand to almost 4 million sq. ft. from the present 2.7 million sq ft in the coming years.
Political stability and government initiatives
The demerger of the state of Andhra Pradesh initially caused turbulence in the political front and thus affected the decisions of investors and home buyers. However, the city is now inching back to normalcy. A stabilized political environment and various investor friendly policies by the state government have been a major step towards making Hyderabad a desired investment hub in South India. For instance, the recent Telangana IT Policy launched by the government aims at expansion of the IT/ITeS sector in the state, which will bolster the Hyderabad market significantly.
Also Read: Is Hyderabad The New Bengaluru?