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      Top 5 Reasons to Invest in Hyderabad Real Estate

      Top 6 Reasons to Invest in Hyderabad Real Estate Market | Assetmonk

      Hyderabad real estate market is already one of the hottest real estate investment destinations, particularly in the housing sector. Overall, the Hyderabad real estate market is likely to continue robust in the next few years, providing attractive possibilities for homebuyers seeking value for money in a booming metropolis. Let us understand what makes Hyderabad attractive and what makes real estate in Hyderabad boom. Here are a few reasons that buttress the growing markets of Hyderabad.

      With rising demand for residential and commercial properties, Hyderabad’s real estate market is one of the most exciting in India. Hyderabad has become a center for a variety of sectors, including information technology, pharmaceuticals, and biotechnology.

      In recent years, the city’s real estate market has grown steadily, with a spike in demand for residences fueled by a rising number of individuals migrating to the city for employment or education. The expansion of HITEC City, a hub for IT and technology industries, has increased the city’s demand for real estate.

      Hyderabad has the most forest cover in India. Between 2011 and 2021, forest cover in Hyderabad increased by 48.66 square kilometers. As a result, nature enthusiasts and individuals in need of fresh air would naturally flock to Hyderabad to invest in residential real estate.

      Hyderabad real estate market is already one of the hottest real estate investment destinations in the next few years, particularly in the housing sector.

      Let us understand what makes Hyderabad attractive and what makes real estate in Hyderabad boom. Here are a few reasons that buttress the growing markets of Hyderabad.

      Top 5 Reasons to Invest in Hyderabad Real Estate Market

      • Consistent price Increases

      Real estate investing in Hyderabad real estate market is the best option for new investors. It has been thriving for many years. Even during the lockdown years, individuals considered plots, flats, plus villas the ideal location for Hyderabad real estate investments. Government regulatory improvements and financial incentives also created an investment opportunity that is based on incentives. Individuals always depend on the stability of the price provided by these assets. As a result, they spend their money on premium residential plots in BN Reddy Nagar, Shadnagar, and Vijayawada Highway.

      • Quality of Life

      Paigah tombs, Golconda Fort, Mecca Masjid, and Char Minaar are among the major historical and tourist sites in the city. The living cost is reasonable, crime rates are low, and the areas are well-connected to practically every major portion of Telangana and Hyderabad. All of this assures a calm, green, clean, and safe atmosphere, which is another key reason why investing in Hyderabad real estate is the greatest option. The best plots for residential real estate in BN Reddy Nagar, Vijayawada Highway, and Shadnagar provide excellent living conditions. 

      • Adequate Access

      The presence, quality, and solid infrastructure are among the primary reasons why in Hyderabad real estate is an excellent prospect for you. A contemporary infrastructure capable of providing appropriate connection to all major sections of the state and India.   Hyderabad attracts a high number of job seekers. Enhanced connections via NH-765, NH-9, NH-7, trains, metro, plus public buses allow this huge throng to move around. The well-established connection also helps to reduce transportation costs while also making it considerably faster. This is why the most attractive spots are in the Hyderabad real estate market. 

      • Hubs for Education and Employment

      Following the presence of contemporary infrastructure, another important reason why Hyderabad real estate market is regarded as fantastic is the proximity of employment and educational centers. The city is peppered with prestigious arts, engineering, medical, and business colleges. It also has several research institutes, plus key employment centers, including Cyber Towers, SEZ, Cyber Pearl, The ‘V’ IT Park, Raheja Mindspace IT Park, and others. 

      • Medical Facilities

      Another key reason why Hyderabad real estate investment is an excellent start or plus point to your investment purse is the availability of improved healthcare services near plots in Hyderabad. Some of India’s most prestigious hospitals, including PSG Hospitals, Premier Hospitals, KIMS Hospital, and Aster Prime Hospital, have healthcare centers spread around Hyderabad.

      Q1 2023 Hyderabad Real Estate Market Insights

      In the first quarter of 2023, average rates in Hyderabad rose as supply fell in response to a jump in demand. Due to its strong connectivity with the rest via Nehru ORR and the existence of job centers, Gachibowli emerged as the top micro-market in terms of demand.

      Overall, the demand (searches) in Hyderabad’s residential market increased by 6.0% QoQ in Q1 2023, while supply (active listings) decreased by 14.2% QoQ. Because of the demand-supply imbalance, the city’s average property rate increased by 5.8% year on year.

      Demand-Supply Analysis of the Hyderabad Real Estate Market

      • Hyderabad’s preference moves from low-cost to mid-range properties. Home buyers in Hyderabad have shown a predilection for mid-segment residences this quarter, with nearly 50% of demand and supply share leaning toward properties priced between INR 5,000 and 7,500 per square foot. This is a departure from low-cost housing.
      • Buyers are opting for larger residences, as 3 BHKs continue to dominate the market in terms of both demand and availability. Approximately 90% of property purchasers in the city looked for 2 and 3-BHK flats. 
      • The demand for tiny one-bedroom apartments and apartments bigger than three bedrooms remained modest.
      • Per demand and supply share, Western Hyderabad maintains its supremacy.
      • Gachibowli was the leading micro-market in terms of demand, up from second in the previous quarter. 
      • The existence of job clusters and excellent connectivity through Nehru ORR has worked well in its favor. 
      • Because of the existence of significant employment centers and substantial retail infrastructure, Miyapur and Kondapur remain among the top three micro-markets in demand and supply.


      Analysis of Hyderabad Real Estate Property Rates

      • Due to increased demand from professionals working in Gachibowli and HITEC City, average property rates increased QoQ in significant regions. These include areas like Mehdipatnam (4.3%), Financial District (1.9%), Manikonda (1.8%), and Miyapur (1%).
      • But, average rates fell in important residential areas. These areas include Banjara Hills (-3.9%), Kondapur (-2.8%), Uppal (-2.2%), and Attapur (-1.1%). This is due to a preference for rental houses in these areas, lowering sales velocity.

      Source: MagicBricks Research

      1. The above is a list of Hyderabad’s key localities, along with statistics on their average rate and QoQ rate changes in Q1 2023. 
      1. The locality rate is computed by averaging the rates of all properties in a location in multi-story and builder floor segments after excluding outlier properties that might affect general pricing.
      1. The 3 tables above classify the locations into different rate buckets.
      1. The colors of the figures reflect the price change in Q1 2023, with green being an increase in rates, red representing a drop in rates, and grey signifying neutral.   

      Bottom Line

      Hyderabad real estate market is becoming a world of opportunities with the expanding and scaling up of markets.  

      From Vijayawada Highway to Medchal-Malkajgiri, Rangareddy to Shad Nagar, the city has grown in all directions. Newer places continue to expand, with tremendous economic growth potential. They also provide novel options for aspiring investors like you to participate in and profit from such vast areas. These factors will enable you to make an excellent option and purchase the greatest residential plots in Shad Nagar, Vijayawada Highway, and Rangareddy. 

      What could be a better place to invest other than Hyderabad real estate after knowing it all? Invest in real estate through Assetmonk, one of the best alternative investment platforms. We offer services at strategic locations like Hyderabad, Mumbai, Bengaluru, and Chennai. The highly curated assets are listed on our platform which has high expected yields of an IRR of up to 21%. 

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      Hyderabad Real Estate FAQ's:

      A.Yes. Hyderabad is a good location to make an investment due to the affordable prices. Also, the emerging IT hub brings a heavy influx of working professionals who built the market.

      Hyderabad is leading in the real estate market due to the emerging IT hub and various government initiatives that support real estate investment. Hence, the real estate in Hyderabad is booming.

      A.The IT hub has introduced working professionals to the city who created the demand for rental housing, the co-living sector. Also, the properties in the proximity of the IT hub experience huge capital appreciation owing to the development. 

      A.Hyderabad proves itself as the best location to invest in with the potential to expand and provide new opportunities to its investors like warehouses, data centers, co-living, and condos. This ensures that the investors have ample opportunities to choose the one that suits them. The stable market trends also stabilize your investment and earn the investor lucrative returns.

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