Hyderabad Real Estate Market Trends & Forecast in 2021

Hyderabad’s Commercial Real Estate has seen a whopping growth of 172% in its transaction volume from 2014 to 2019, a report stated by Knight Frank India. Hyderabad, with its geographically safe location and enormously developing IT hub, has attracted massive investments which led to the expansion of markets and brought in a  robust structure in the Real Estate sector. 

Real Estate is a good investment option when compared to volatile instruments like stocks. Stocks can sweep your investment at once when the market is down, whereas a physical asset backs the Real Estate investments.

Office spaces are the buildings that provide the infrastructure for businesses to run. Due to the nature of the IT industry and Hyderabad’s pro policies for attracting IT companies, office spaces seem to drive the currents of real EstateEstate. Office space sales have increased multiple folds in the past few years.

According to the report by Knight Frank, Hyderabad has jumped from sixth to the second position in the annual office space demand across the key cities of the country. Office rental values have also increased by 2% year-on-year in the third quarter of 2020.

Companies prefer work areas with ample space to conduct meetings, space to hang out during the recess. With some of the renowned companies’ base set in Hyderabad, office spaces have carved a niche for themselves.

Hyderabad’s housing sector witnessed sales that amount to 62% of that of pre-covid sales even after the uncertainty brought by the pandemic. It is an indication of the regaining capability of the real estate market of Hyderabad.

Pandemic has thrown some light on the need of having a house of your own. According to the Knight Frank India report, Hyderabad is one among the two cities, the other being Bangalore, that have not seen a fall in residential prices even under the uncertainties of pandemic times.

Hyderabad’s unsold inventory of the housing sector is at the lowest than any other city, with an annual decline of 9%. Bengaluru has an unsold inventory that might take 36 months more while Chennai has an inventory that takes 39 months. The reduced unsold inventory of Hyderabad indicates a higher demand as compared to supply.

With an emerging need for social distancing, the preference of people is shifting to independent houses or villas on the outskirts of a city. This is, in turn, spurring supply and reducing the demand-supply gap. 

Hyderabad stands as one of the significant warehousing markets of the country. With the push towards the digital economy, the warehouses have gained momentum. The shift of the businesses to online generates a need for an offline space to store the commodities that spurs the warehouse market.

Though 2020 has seen a relatively lower transaction activity, the warehouse market has seen a whopping 41% CAGR increase from 2017. 

As digitization has just started, they are not going to go out of trend any time soon.

Data Centers are buildings with a network of computers and infrastructure that are used for storing data. 

With the growing dependency on digitization, almost every industry needs data centres to store and protect data from malicious attacks.

The policies of the Telangana government to develop Hyderbad’s IT industry and to increase in the research field is pushing the need for data centres. 

CtrlS is Asia’s largest Tier 4 data centre that is headquartered in Hyderabad. It pioneers India’s first Rated 4 data centre. Tier 4 data centres have the utmost high-end infrastructure to store the data.

Amazon Web Services is all set to invest $2.8 Billion, Rs. 20,761 crores, to build the data centre region in Hyderabad by mid-2022. This investment acts as an anchor for pulling further technological investments like enterprises, start-ups, and IT investments. Residential, rental properties and the IT industry are coupled to each other and drive the realty sector into the higher scales.  

Hyderabad’s data centre capacity is expected to triple in the next five years, a recent study claims.

The Telangana government has nodded and signalled the Integrated Township policy. Integrated townships are places which are based on the idea of “walk to work”. 

The townships are built with high-end infrastructure and amenities, also which are near located to the workplaces, a little away from the metropolitan cities. This is a smarter way of expansion of the city.

As these are government-backed policies, these projects are highly credible. Hence, they ensure sustainable development of the real estate sector.

Telangana government launched the Look East Policy earlier this year to lure the IT industry to the eastern side of Hyderabad, as the industry is concentrated on the western corridor.

Five IT parks have been announced in the east, which is going to boost the real estate prices across the eastern corridor of Hyderabad. The areas on the eastern side are LB Nagar, Nagole, Uppal, and Adibatla, to name a few.

The government shall incentivize the companies that invest in the eastern corridor. So, either land or the property with good amenities is a sensible choice to invest in these dormant hours, as the properties undergo capital appreciation owing to the development. 

Hyderabad has won many accolades for its activity. Hyderabad is selected as the World’s Most Dynamic City in the JLL City Momentum Index 2020. It also stands top in the survey conducted by a destination website Holidify.com that titled Hyderabad as the best place to live and work in India.  

Adding many more such feathers in its cap, Hyderabad is spearheading the real estate industry to diversify like never before.  

Investment always needs planning and a lot of research.  Acquainting yourself with the changing trends helps in maximizing the returns. Investing in the right property at the right time is the crux of real Estate. You can approach experts or find many organizations offering services to cater to your needs.

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