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  • Investing in Hyderabad Real Estate-A Boon or Bane?

    Investing in Hyderabad Real Estate-A Boon or Bane?

    Hyderabad has been experiencing a boom in real estate in the past half a decade. As per Magicbricks’ data, Hyderabad has delivered 50% returns in the past five years. The city markets’ success stories extended when the city has defied falling trends in property prices during tough times like pandemic. This stands as a testimony to the investment market where investors thrive on shielding their investments alongside earning profitable returns.

    Hyderabad’s robust real estate market has much to offer you. Let us know how Hyderabad favors real estate investments.   

    Pros of investing in Hyderabad Real Estate

    Low investment costs

    The properties in Hyderabad, the capital city of Telangana, are available for affordable prices. The investments are within reach for a lower price than most of the country’s metropolitan cities. This makes it more attractive for the investors to vest their resources with the city and save some money. 

    The following table compares land prices of various metropolitan cities of which Hyderabad has the least costs.

    City

    Land Price

     (per sq. ft. in INR)

    Mumbai

    Rs.23,400

    Delhi

    Rs.9,700

    Chennai

    Rs.6,900

    Hyderabad

    Rs.4,500

    Higher ROI

    The low investment costs are coupled with the High Return On Investment. That amplifies the chances of investments in the city markets. The commercial properties’ ROI stands on an average of 8%, which is considered good by the Real Estate Industry experts. 

    Hyderabad has gained global attention with COVID vaccine manufacturing. Also, government initiatives like the look east policy aid real estate investments in the fringe areas. The city has witnessed infrastructure development at an unanticipated pace due to the emerging IT hub. The worth of properties in the places in the vicinity of the IT industry experience a surge, leading to higher ROI.  

    Ease of Purchase

    The state of Telangana ranks third in the country in the Ease of Doing BusinessBusiness. Hyderabad, the capital city, can be considered the sole driver of the state’s BusinessBusiness due to the magnificent investments of the global tech giants in the city premises. The ease of doing BusinessBusiness reflects the friendly policies of the state government to promote business activities. 

    Investing in a place that helps you get along with the purchasing procedures adds to your returns. A hassle-free purchase process saves time and money for the investors.  

    Flexibility in choices

    Hyderabad is known for the diverse cultures that stay in harmony. This applies to the business markets as well. The Hyderabad city has the exceptional quality of welcoming new investment options. This is proven by the co-living market, the latest entrant with a surge before the pandemic. 

    The new investment options at affordable prices provide a wide scope for the investors to choose from. The flexibility in the city markets’ choices lets the investors consider their obligations and aspirations, which lures the investments into the capital city of Telangana.  

    Cons of investing in Hyderabad Real Estate

    Difficulty in En-cashing big-ticket investments

    Heavy investments bring in heavy returns, but when sold or leased. When it is time for you to encash your big investments, the big markets like Hyderabad sound affordable from investors’ perspective but from the developers’ end project, the difficulty in encashing the big-ticket investments. 

    Liquidating heavy investment assets demands time and energy. You can diversify the investments and acquire properties through fractional ownership that wants you to invest a small amount and earn a share of the huge asset class investments. There are online platforms like Assetmonk, through which you can make hassle-free investments. The asset managers are available round the clock to help you through your investment journey. 

    Additional Expenses

    Nothing comes for free! Every service availed of, every asset purchased has a bill attached to it. Also, the procured assets are not to be left to their fate. They do have maintenance and repair concerns to be addressed here and there during the property holding period. 

    Hyderabad is a dynamic city that welcomes new trends into the markets with ease. In a city like this, the properties are expected to refurbish, corresponding to the trends. But, it is your responsibility to ensure that you do not burn your pockets. 

    Wondering how? There are real estate metrics that help you in understanding property performance and management concerns. Metrics like Cash on Cash Return, NOI, let you understand the cash flow by taking into account the expenses and expenditure on the asset. This enables you to realize the asset’s income generation potential before buying it and helps you streamline your investment actions.

    Legal Issues

    The legal aspects of the properties should be checked well before procuring the property. The legal documents have to be verified to ensure that the property is not under any dispute; else, you may have to face the consequences that may be as serious as losing the property. 

    With the government initiatives like Look East and North Policy, Integrated township, the Hyderabad city limits are anticipated to extend and stimulate the growth in the fringe areas through dispersion. In such a scenario, the scope for the legal snags increases. You must be wary of this and carry out thorough due diligence on the property before purchasing. 

    Due-diligence in real estate is a process of surveying the property to have in-depth knowledge about the property’s legal requisites. This is a tedious process to get the due diligence done. Also, first-time investors might not be aware of all this information and procedures. The times have changed, and online platforms have mushroomed like never before, getting the due diligence done on your behalf. Real Estate digital investing platforms like Assetmonk list the properties that undergo thorough due diligence to provide you with credible projects.  

    Bottom Line

    Investing in Hyderabad Real Estate can be luring and profitable. You can bag a property at an affordable price and earn high returns. The ample opportunities that the city market provides help you choose the one that suits you in every aspect, from financial to specific asset choice. 

    Every coin has two sides, and so does investing in Hyderabad Real Estate. The heavy investments are tougher to liquidate owing to the cheap and cheerful property prices in the city markets. The additional expenses incurred on the asset renovation might burn your pockets. The city markets like Hyderabad that are welcoming and dynamic have moving trends, and these trends have to be incorporated into the properties to keep up with the markets. Else, your property might not win the race, the price of which if you have to pay might be expensive. Be that as it may, you can always diversify your portfolio and equip yourself with the metrics to understand the costs and expenditure.

    The darker side is brightened by Assetmonk, a real estate investing platform that helps you find pocket-friendly investments. Only highly curated assets with high yields are listed on our platform. To know more about the investment opportunities, click here

    Frequently Asked Questions:

    Hyderabad Real estate stands as a major market in the country. Investors can bag property at an affordable price as Hyderabad’s properties have lower price tags than other metropolitan cities. The returns earned are also high. Hence, Hyderabad is an ideal investment location.

    Investors can study the trends and approach the developers through a mediator who is the traditional method of making real estate investments. The digital platforms have changed the scenario as they find the best deals on your behalf.

    Investors can invest in a myriad of investments like Warehouses, co-living spaces, residential and commercial properties. There are trending investment options like condos available in the city markets.

    The dynamic markets have the trends changing now and then. This requires you to upgrade your commercial property corresponding to the trends. This means additional expenses would be incurred. Also, encashing the big investments is a tough task, especially in the cities where the properties are available at affordable prices.

    With its diverse investment options, the city allows the investors to invest in various properties and diversify the portfolio rather than concentrating the money on a single huge investment. The city markets also offer fractional ownership assets that let you invest in asset class investment with small ticket sizes, thereby increasing the accessibility to a wide band of investors.

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