Hyderabad Real Estate Investment

Ultimate Guide for Hyderabad Real Estate Investment

Hyderabad was recently adorned with a new feather in its cap – Tree city of the world. It has earlier earned many accolades for its infrastructure development and the IT hub. The capital city of Telangana holds some of the remarkable architectures like Charminar, Golconda Fort and has earned the sobriquet – The city of Nizams. The city has a diverse culture and is a house for multiple religions living together in harmony.

The city has an IT hub that provides heavy employment and development opportunities to the town. As of 2020, Hyderabad has six lakh employees in the IT/ITeS sector working in more than 1500 companies that exhibit the city’s potential in the IT sector. The eminent markets of Hyderabad attract the inflow of investments in various sectors like pharmaceuticals, real estate, and health care, etc.

Hyderabad Overview

Demographics

Hyderabad has grown into a metropolitan city with an estimated population to be around 1,02,69,000 in 2021. The annual change of 2.65% increase is anticipated to bring these massive figures of population. With such a vast population, the city stands as the fourth most populated city in the country.

Hyderabad Demographics

If we trace back to the 1950s to understand the population graph, the recorded population in 1950 is 10,96,320, which exploded to 1,00,04,144 in 2020. The population hence grew almost ten times in three-quarters of a century. 

The population density of the capital city of Telangana stands at 18,480/km2 or 47,900/miles2.

Linguistics and Culture

The city has a major population of Telugu and Urdu-speaking people and various other languages like Kannada, Marwari, Odia, Bengali, Tamil in minor percentages owing to the migrated population. Almost a quarter of the city is occupied by migrants from other states, which is why the Hyderabadis follow various religions. 

People from different parts of the country flow down to Hyderabad, and hence the city has various religions living in peace. The percentage of religions is as follows. Hinduism (55%) is followed by Islam (41%), and Christians (2.5%), Jainism (0.5%), Buddhism (0.02%), and other religions form the rest of the population.

Geography

Hyderabad is spread over an area of 625 sq. Kilometers (241 Miles) at an altitude of 542metres. With a vast area, Hyderabad is one of the largest metropolitan cities in the country. It is optimally located at 1,566 Kilometers (973 miles) south of Delhi, 699 Kilometers (434 Miles) South-east of Mumbai, and 570 Kilometers (350 Miles) North of Bengaluru by road. This makes it accessible to the prime markets of the country, thereby attracting business and trade.

Investment Opportunities in Hyderabad

Hyderabad has been famous for its bazaars for ages. The tremendous charisma that the city holds is often attributed to the bustling markets of the Telangana state capital. The town offers profuse investment opportunities to the investors to pour in their resources in the best-placed markets of the country ranked as the most dynamic city globally by the JLL report, a renowned global real estate consultancy.

Delving into the investment opportunities amuses the investors with a myriad of investment sectors, all exhibiting stellar performances. Hyderabad is a house to various developed investment sectors like Health care, Real Estate, Retail, High Network Businesses, and Tours & travel. All these sectors have success stories to boast of their performance and clear every speck of doubts of the investors. and indeed are worth investing in.

Why choose Hyderabad for Real Estate Investments?

Of all the investment sectors mentioned above, real estate has occupied a prominent place owing to its evolution with the ever-changing markets. The city markets today stand among the top eight real estate cities of the country. Here are some of the factors that drive investments into the city markets that elevate the city to global standards.

Emerging IT hub

Hyderabad’s IT corridor has glorified the city with shimmering structures and buildings, of course, filled with working professionals. These professionals form the demand for residential reals estate and boost the corresponding sector.

Fast-Paced Infrastructure Development

The infrastructure has developed by leaps and bounds as the IT industry supported complementary sectors like these. Infra projects like metro rail have enhanced the last mile connectivity and elevated the surrounding areas, thereby stirring demand for the real estate market.

Open to new avenues

The markets that experience growth are those that are adaptable. Because adaptability ensures positive trends and places the market in a better position, Hyderabad city is highly versatile and responds positively to technological changes and people preferences. It has welcomed new investment options like co-living and condos, which open up investment options.

TS RERA ACT

The lack of an organized approach to these real estate investments has hindered, developing a corner of doubt and speculation in investors’ minds regarding defaulting. The establishment of RERA has swept it all and instilled confidence in investors regarding the credibility and delivery of real estate projects. The Act came into existence on 4 August 2017 as an initiative to legitimize the real estate sector with the ultimate objective to protect the interests of consumers and developers.

TS RERA Rules and Regulations

RERA renders various services to the citizens, promoters, and real estate agents. Developers are supposed to register their projects with RERA and deposit 70% of the funds in an account with RERA as a safety factor to ensure continuity in the construction. The real estate agents must also register and renew their licenses every five years. The citizens can track the progress of the developing project as the developers have to update the project status every couple of months.

TS RERA Registration Process

The structured approach has a predetermined registration process for registering the projects under RERA. The developers can visit the official website and see the services section and proceed after that as guided by the website to register the project. It is mandatory to submit the required documents to RERA after filling in the project details. The last step is to pay the fees as charged by the RERA, which depends on various parameters like the project’s type and area. The registration process for promoters and real estate agents also remains similar.

Telangana State Land Records and Stamp Duty Charges

How to Check Land Records in Telangana?

Dharani portal is a digital platform in Telangana that serves as a one-stop place to bag any information regarding Telangana land. The state has initiated this move to digitize the land records to resolve the disputes and ensure safe land transactions in the state hereafter. 

The portal provides various services like slot booking, applying for mutation, land details search, and many more. To avail of the services, the citizens must register with the website through the predetermined process guided by the website. To check the land records, visit the official website and select the land details search; the option would be available on the website. Enter the required details as demanded by the webpage and verify the captcha to complete the checking process of land records.

This has increased the access to the land information, which is the chief step to reduce land disputes and have the information at the fingertips.

Stamp Duty Charges

Stamp Duty charges are the government’s taxes and are generally paid by the buyers during the transaction. The stamp duty across the country varies from 4-8%. Telangana has an average stamp duty collected at a rate of 6% of the property value. The stamp duties vary with properties like the immovable, partition of property, and gifts. If not paid, the transaction would also be considered null and void, and the state holds every right to confiscate the property, and the corresponding persons would be penalized accordingly.

Best Real Estate Investment Options in Hyderabad

As it becomes clear that the Hyderabad real estate market has the potential to take your investment further and beyond, it is now time to know the best real estate investment options in Hyderabad. If we streamline into real estate investments, there are umpteen investment options. 

Real estate investments are categorized as residential real estate, commercial real estate, and specialist sectors like co-living and luxury homes on a broader classification. The real estate market of Hyderabad during the pandemic has, on the whole, been turbulent. Simultaneously, some sectors performed reasonably well, like office real estate and residential real estate. This implies that it is wise on the investors’ part to follow the market trends before plunging into the investments to make profits.

Residential Real Estate

Investing in residential properties always provides the investors with steady and regular returns and the best work during tough times. These properties are a hedge against inflation. Hence, residential property not only provides a roof over your head but is indeed much more than that. Residential properties attract tenants in the city, which experiences a heavy influx of working professionals who migrate for employment opportunities. Also, being the utility sector, residential properties attract tenants in a densely populated city like Hyderabad. There are various investment options in the city markets like Residential plots, apartments, and villas at cheerful prices that investors can afford. 

Some best places attract the best prices due to connectivity, resources, proximity to the IT hub, and infrastructure development. Narsingi, Tellapur, Adibatla, Uppal, and Pocharam are the markets to watch out for investing in residential real estate as these areas are expected to escalate the worth of the property, which is the prime motive of any investment.

Commercial Real Estate

Commercial real estate is the coveted real estate investment due to the lucrative returns it brings in. It provides diverse and abundant investment chances to the investors starting from commercial showrooms, office spaces, warehouses to data centers that have become the need of the hour. The commercial real estate of Hyderabad has experienced a quantum jump due to the development of the city in various sectors like IT, the pharmaceutical industry, etc. 

Location plays a significant role in the capital appreciation of commercial properties. A property located in a prime location attracts tenants and lucrative rents, thereby enhancing the business and trading. Some places work well for commercial real estate and residential real estate like Narsingi, Tellapur, Adibatla, Ghatkesar, Jubilee Hills, etc. These places stand as an attraction to commercial property investments and earn the investors a good return on investments.

Industrial Real Estate

Industrial properties are often regarded as commercial properties, but the narrow difference lies in the property’s purpose. Commercial properties are used for various business purposes, but industrial properties are utilized explicitly for industrial purposes such as storage, manufacturing, construction, and handling operations. 

With regard to the industrial operations, the investment options can vary from industrial plots, warehouses, factory units, and many more. Industrial properties are generally located at strategic locations, away from the residential and vicinity of the commercial properties and the markets that ensure connectivity and build the trade. Hyderabad accommodates the industrial establishments that were founded decades ago and are running successfully to date, like Hindustan Aeronautics Limited, Asian Paints. At prime locations like Cherlapally, Bongulur, Balanagar, and Nacharam, the industrial properties rope in huge returns due to the high net worth of business transactions.

Pros and Cons of Investing in Hyderabad

 Pros

Hyderabad’s market has the most to offer you in terms of property prices and investment options. The city markets hold spectacular properties at affordable prices when compared to other metropolitan cities across the country. Also, the town provides the investors with umpteen investment options to choose from, thereby enhancing the flexibility in making profitable investments. Name the real estate investment option, and Hyderbad holds the market for it, whether it be co-living, student housing, and many more to go.

Cons

Though the properties of Hyderabad have a substantial return on investments, it seems quite hectic to encash the big ticket-size assets. The dynamic city welcomes trending investments, which mean refurbishing and renovating your existing properties. This incurs a cost that has to be flown from the investor’s pocket to remodel the property and upgrade it corresponding to the trending options. Nevertheless, the city ensures complete access to the properties through affordability.

Investing Through Assetmonk

Assetmonk is a digital real estate investing platform that helps investors sort their real estate investments. We offer investment opportunities at strategic locations like Hyderabad, Bengaluru, and Chennai. Here are a few reasons that attract the investors to engage with us.

Hassle-free investing process

Assetmonk is an online investing platform where highly curated assets are listed online, and investors are at convenience to choose. Our asset managers guide the investors throughout the purchase process to avoid any setbacks. Investors need not run hither and thither to find the properties.

Ample Investment Opportunities

Assetmonk opens up the real estate world to the investors ready to grab opportunities. The broad range of assets, from residential to co-living, exposes the investors to multiple options of various features that differ in the investments and yields.

High Yielding Investments

The platform’s properties have high expected IRR yields of up to 21%, which is the best in the prevailing market conditions. Investors can therefore earn profits from the investments through Assetmonk.

Frequently Asked Questions on Hyderabad Real Estate Investment:

Some of the best locations in Hyderabad for investing include Hafeezpet, Nanakramguda, Bachupally, Kondapur, etc.

It is in fact the best time to invest in Hyderabad as the price of the property has gone down due to the pandemic and economic slowdown. However the price is also expected to increase once the pandemic is brought under control.

Investing in under-construction apartments is a smart investment option in a city like Hyderabad. This is because of the steady increase in real estate development and the price quoted on these developments. You can also get a property at a much lesser rate if you invest in an under-construction project.

Investing in rental properties may be one of the most profitable ways as it provides you with a positive cash flow and high return on investment. It can also provide you with capital appreciation, tax benefits and a stable income.

Some of the main locations whereby you can invest in land include Mokila, Shankarpally, Ghatkesar, Adibatla, Patancheru, Shadnagar, etc.

Some of the major factors contributing to the real estate market in hyderabad is its conducive investment climate, dynamic professional class, developed corporate ecosystem, rise in co-working spaces, etc.

Maheshwaram is definitely one of the best locations in Hyderabad to invest in. One of the main reasons for this is that there are several commercial ventures in Maheshwaram and many more are opening up. Maheshwaram also offers a great deal on affordable housing units as well.

Real Estate (Regulation and Development) Act, 2016, is a legislative enactment to protect the interest of the homebuyers of mainly under-construction projects. It aims to bring in transparency and also eliminate fraudulent transactions.

The RERA Act is applicable to all commercial and residential projects. It is mandated that all under-construction real estate projects are registered under the Act. Builders, promoters and real estate brokers are also required to register themselves with RERA.

You can check if your property is RERA registered by visiting the online portal of the Telangana RERA and entering the details of your properties.

If the property is not registered with RERA, then you may file a complaint with the RERA authorities or in the consumer court. It is recommended that you file a complaint with RERA authority as it is a specialised adjudicating body for real estate matters alone. Thus facilitating a speedy redressal process.

The RERA Act is  beneficial as it ensures transparency in a real estate transaction. It is also beneficial as it holds the builders, promoters and real estate agents responsible for their action and thereby eliminating fraudulent transactions to a particular limit. The RERA Act also mandates the establishment of a regulatory body in every state. By having a real estate regulatory authority, you can also eliminate the delay in receiving redressal for your grievances.

You can register your project under RERA by visiting the online portal of the Telangana RERA and selecting the service tab. You can select the ‘register property’ option from the dropdown box and you will be redirected to a new page. You are required to log in and in case you are a new user, then click on the ‘new registration’ option provided below. If you are registering as an agent, then you may visit the website and select the ‘real estate agent registration’ option from the dropdown box.

The stamp duty in Hyderabad is between 4-5% on the market value or agreement value, whichever is highest. A registration charge of 0.5% is also imposed on the transfer of property.

Investing in commercial property in Hyderabad is a profitable option as Hyderabad is growing at a faster pace. Commercial properties often offer high rent and also high rates of capital appreciation.

Some of the advantages of investing in Hyderabad is that it offers Lower investment costs, Higher returns on investments (ROIs), Provision of choice and flexibility, etc. The fact that real estate property has low liquidity rate is a disadvantage of investing in real estate.