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      Real Estate Investment Options in Hyderabad in 2024

      Real Estate Investment Options in Hyderabad in 2021

      Real estate contributes the lion’s share of the Telangana state’s economy, approximately 65%. The IT hub and the working professionals’ influx have created the demand for prime markets like Hyderabad. Hyderabad, the capital city, has exhibited its strong stance in its market by exhibiting positive trends in challenging times like the Pandemic. While all other major cities of the country were churning during the year 2020, Hyderabad has demonstrated resilience to the falling trends.

      The city’s peculiar feature is its affordability with a wide range of price brackets allowing investors to make a suitable choice. With the diverse markets and investment options, the real estate market in Hyderabad has the best to offer its investors.

      Let us delve into each property investment option like commercial and residential sectors and speculate the trends.

      Commercial Real Estate in Hyderabad

      Commercial Real Estate in Hyderabad has experienced growth despite the lockdown. The office space market has seen a surge recording the second-highest annual supply in the country after Bengaluru.

      According to the Knight Frank India Report, the new COVID vaccine drive has shot up business activities that recorded a 640% increase in office space transactions during the fourth quarter of the year. The office leasing activity was recorded during the second half of the year as the first half was stalled due to the lockdown.

      The boost in the office space segment is anticipated to be the announcement of the Goldman Sachs entry during the covid. The office space’s rents were stable even during the pandemic, and the office space has increased in size, as mentioned above.

      The commercial real estate sector in Hyderabad is seeing a rise, with various developers acquiring property for the purpose. So, the office market in Hyderabad is expected to add up to 15 million square feet of space over the next 3 – 4 quarters.

      Hyderabad added approximately 8.2 million square feet of new office space in H1FY23, the city’s biggest ever new office supply in the previous six years.

      The city had an 82% increase in new office supply compared to H1FY22, accounting for 34% of new office space floods across the top 7 Indian markets. In terms of net office absorption, Hyderabad had the second largest (21% share) in the country with 4.03 Mn sf in H1FY23. The city also saw the biggest YoY growth in net office space absorption, at 152%.

      In H1FY23, the average citywide office rental was INR 61/sf/Mo. Thanks to a robust injection of new office space into the city, office vacancy levels increased modestly by 0.7% to 15.9% in H1FY23. IT-ITeS occupiers continued to be the primary demand driver for office space in Hyderabad, accounting for 39% of total leasing. Manufacturing and industrial occupiers have expanded their share of the market, accounting for 22% of the market, with co-working providers accounting for 21% of the office leasing market.

      Source: Anarock Property Consultants

      Owning a commercial property as massive as office space and a data center does not seem affordable to the common man. This necessarily does not close the doors for small investors. You can invest through fractional ownership and own a part of the high-class asset with investments as low as Rs. 5 Lakhs to Rs.10 Lakhs. You can invest through online investing platforms like Assetmonk and enjoy hassle-free returns as they provide asset management.

      Residential Real Estate in Hyderabad

      The residential sector is categorized as the utility and the necessary sector. Moreover, the pandemic has confined the human race to homes, making the argument of having their own home healthy. The easing restrictions during the second half of the year 2020 were supported by the festive demand, which tremendously shot up sales. This is justified by the massive figures for home sales recorded at 5,260 units in the latter half of 2020. On a quarterly comparison, the fourth quarter sales saw a whopping 127% rise compared to the third quarter of 2020.

      The Hyderabad market has seen dramatic price growth in recent years, with higher-value houses selling in February 2023.

      Residential real estate has also performed well, with the city registering the highest housing sales in the previous ten years. Hyderabad is the only city in India where capital values have consistently increased over the last decade.

      Investing in residential properties is always rewarding, owing to capital appreciation and rental income. You can invest in residential properties to earn a steady passive income. The maintenance and repair costs are also reasonable as compared to commercial properties. The residential properties also provide a hedge against inflation. You can relax and watch the returns flow into your account.

      Luxury Houses in Hyderabad

      In the last 6-8 years, Hyderabad has seen a slew of luxury villa developments featuring cutting-edge amenities for the city’s wealthy residents. Some of the nicest villa projects in Hyderabad in recent years have drawn many people from premium neighborhoods such as Banjara Hills and Jubilee Hills.

      All of these luxury villas include modern amenities such as a gym, swimming pool, library, jogging track, CCTV security, multipurpose hall, intercom phone, and so on.

      Luxury homes on the outskirts of the city have gained traction during the pandemic times. The luxury villas priced between Rs. 9 Crores to Rs. 15 crores were on-demand in the second half of 2020. The areas like Narsingi, Gopanpally, Kokapet, and Gandipet saw a demand surge. The luxury homes situated on the city’s outskirts are experiencing a shoot in demand due to the pressing need for social distancing.

      The investor base for these properties is broadly from doctors, and NRIs as these asset-class properties are affordable to high net-worth individuals. But through fractional ownership, you can invest with small ticket sizes in these high-graded properties and earn lucrative returns.

      Co-living Spaces in Hyderabad

      The Co-living sector was trending before the pandemic times. The pandemic hit the spaces hard due to the work-from-home culture. But there are co-living spaces that performed reasonably well. The working professionals from healthcare, pharmaceutical, and media had to work around the pandemic clock. These professionals created a demand for a hygienic place with healthy food to reside in during challenging times.

      According to the Co-living space co-founder, this was an opportunity for the co-living spaces, some of which managed to have a high occupancy rate of around 80%. On IT professionals’ return, the co-living spaces would bustle again with their customers occupying their spaces.

      You can invest in co-living spaces as they are not going to let you down anytime soon. The IT sector provides the required demand in the aftermath of the pandemic. The investment in co-living spaces is significantly reduced through fractional ownership assets.

      Bottom Line

      Real estate has been an age-old investment vehicle, and novel approaches are ensuring that the industry is evolving to make it more accessible and affordable. Investments in commercial, residential, and specialist sectors like co-living are providing investors with myriad investment options.

      Want to purchase a property? Invest through Assetmonk, an online real estate investing platform that offers investment opportunities in properties like commercial real estate, residential and co-living spaces through various products. We list our properties at strategic locations like Bengaluru, Hyderabad, and Chennai. Our investors can avail themselves of the services at strategic locations like Bengaluru, Hyderabad, and Chennai. The properties are highly curated and have expected IRR yields of up to 21%, the best in the prevailing market conditions.

      Real Estate Investment Options in Hyderabad FAQ’s:

      What is the most profitable Real Estate investment?

      Commercial real estate is the most profitable investment. The commercial properties are leased out for business and industrial purposes, requiring colossal space and high cash flow. Owing to these reasons, commercial real estate is the most profitable sector.

      Where can I invest in Real Estate in Hyderabad?

      The investors can invest in real estate sectors like commercial properties, residential properties, co-living and condos, retail properties, etc.

      Is Hyderabad an expensive city?

      No. Hyderabad is the most affordable city in the country. The land rates and property prices are the most affordable when compared to other metropolitan cities of the country.

      Is investing in Hyderabad profitable?

      The investors find diverse properties and a wide range of prices that make the city an affordable one. The global giants are flowing to the city from across the world due to the conducive atmosphere for business supported by government initiatives. This makes Hyderabad the perfect place to invest, which brings in lucrative returns.

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