Residential property has many feathers adorned in its cap owing to the benefits it provides to the customers. The residential asset can be an excellent source of passive income and support your expenses during inflation and recession.
If you are now interested in residential real estate and want to explore different options, you are in the right place. By the word right place, if you are wondering what the right place to invest in residential real estate is, Hyderabad tops the list with affordable locations. The city has exhibited a stellar performance by defying the falling trends in property prices. It hence seems worthwhile to invest in Hyderabad’s residential real estate, and it is now time to understand the residential investment options.
Residential Plots
Residential plots are one of the best investment options due to the advantages like less maintenance than properties. Also, the average price per sq. ft. of Hyderabad is much low compared to other metropolitan cities like Chennai, Bengaluru, Mumbai, and Delhi. The average price of a property is Rs.4,500 in Hyderabad.
With the affordable prices, the residential plots are gaining momentum in Hyderabad. The cityscape offers the best opportunities to the investors, with the prices growing steadily, offering a positive outcome to the investors. The capital city of Telangana has experienced an annual change of 5% in property prices while other South Indian cities like Chennai and Bengaluru experienced a mere 2% change in the prices.
This capital appreciation lures the investors to invest in one of the fastest-growing markets of the country. Despite the fact that investing in residential plots in Hyderabad is profitable, there are few points to consider before you decide on the purchase. The bank loans are not granted for open plot investments. Also, the steady regular income earned through rental properties is absent in the available plot investment. The additional expenditure is involved if you plan to build a structure in the purchased plot. You can always go for investing in apartments if you are wary about the residential plot investments.
Apartments
Apartments are another type of residential property investment that attracts investors with monetary and maintenance advantages. The flats these days are coming with top-notch amenities like community halls, a common sports area, and fitness spaces. These lure the investors to these asset class properties that appreciate the time and bring in high returns. Properties with such high-end facilities bring in high rental returns and also have high appreciation.
A recent study by ANAROCK states that the average size of the apartments increased in the country’s top cities, and Hyderabad has witnessed a 3% increase in the average size of the apartment. It states that Hyderabad’s average size of the apartment is 1,750 sq. ft. which is the highest in India. The increase in the apartments’ average size is attributed to the needs that the pandemic has stressed on like working space and study space requirements.
The apartment investment starts from a few lakhs and extends into crores depending on size, locality, connectivity, etc. The broad range of prices enhances the accessibility to the investors.
Villas
The pandemic has stressed the need for spacious homes to accommodate the working space also. In this scenario, villas or luxury homes have seen a spike in demand and sales during the pandemic. This led to an increase in the properties’ price by 10% in almost all the localities of Hyderabad.
The West Hyderabad properties have gained prominence and have experienced a surge in the residential property transaction activity. The houses that are above Rs.2 Crores are termed luxury homes.
Bottom Line
The residential plots, apartments, and villas are among the residential property investments. Hyderabad holds a good track record of growth in the residential sector due to the IT hub, good infrastructure development, and connectivity. While the plots demand a little high expenditure and work from you in building a structure, apartments and villas seem hassle-free compared to the plots. On the whole, residential property investments are a way to earn a steady regular income, and Hyderabad proved itself by the growing trends in the average property prices that indicate a good capital appreciation.
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Residential Property Investment in Hyderabad FAQ's:
Yes. Investing in an apartment is a great investment owing to the advantages like steady rental income and good capital appreciation. Also, the properties are affordable, and the city has one of the stable residential growth trends.
You can invest in residential plots, apartments, and villas or bungalows. Hyderabad is known for its affordability, and hence you can bag a property at a cheerful price. The Villas in the city limits have seen a surge in demand.
Investing in residential plots is indeed a good move due to the city’s development in terms of infrastructure and industrial development. The emerging IT hub also escalates the properties in the surrounding areas, i.e., capital appreciation. This brings in high returns over a period of time.
The Villas in the vicinity of the city, precisely in the city’s outskirts, have experienced a surge in demand during the pandemic due to the increasing concerns of hygiene and space requirement for working from home. This rose the prices of the properties, and investing in these properties might prove profitable as these purchase trends will continue for a while.
