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Is West Hyderabad is the right place for Real Estate Investment ?

Published By undefined
Apr 12, 2024
Is West Hyderabad is the right place for Real Estate Investment ?

A city earlier characterized by Charminar or Hussain Sagar Lake has transmuted into an IT hub in Hyderabad with glowing skyscrapers, financial corporates, innovation intermediaries, business incubators, and global e-commerce firms. The West Hyderabad zone has encountered immense growth in the infrastructure segment over the past few years leading to a boom in the value of real estate housing and commercial spaces as an investment near IT companies.

The presence of SEZs, backed by the IT Industry, in West HyderaResidential Propertiesbad has significantly increased the importance of both residential and commercial spaces. West Hyderabad has become a leading employment hub in India, with the emergence of a new SEZ policy attracting foreign direct investment (FDI). Telangana State has been gaining recognition for its infrastructural development and increasing employment rate. As people from all over the country have been moving to the city for more opportunities, many young professionals will look for housing spaces near their offices.

The development mechanism for real estate in Hyderabad is still the western corridor, which includes the suburbs from Kukatpally to real estate in Kondapur and Manikonda to Residential Properties in Gachibowli. The demand for real estate investment in that area is still high even if many IT offices aren't fully occupied by staff due to the impact of coronavirus's newly emerged hybrid model. As a result, real estate in the Financial District, Hitec City, and other western suburbs continue dominating the new real estate investment market.

West Hyderabad- Housing Market Insights

According to a study by 99acres.com, new real estate ventures in the western corridor increased by 250% in the Q4 of 2021, even if overall new launches were relatively low in the quarter from July to September. The survey also said that the most significant market shares were held by 2BHK and 3BHK apartments sized 1,100-1,300 sq ft and 1,500-2,500 sq ft, respectively. Additionally, the market share for 2BHK and 3BHK flats in locations like Kondapur, Gachibowli, Manikonda, Kukatpally, and residential projects near Madhapur ranged from 35%-50% on average.

Between July and September 2021, there was a rise in the launch of mid and high-income segments within residential projects in Hyderabad. Sales initially experienced a decline due to a surge in Covid-19 cases in April 2021. Still, healthy demand from potential buyers helped them recover. Property values in Hyderabad are steadily increasing after being steady for a long time due to the market confidence and anticipation of a rebound. The need for affordable housing has surged in the city's outskirts due to the rise in land prices, especially for residences between Rs. 60 lakh and Rs. 80 lakh, the best investments in Hyderabad and other metropolitan cities.

The trend toward premium property has made people more favorable towards buying luxury homes and villas. As a result, there has been a consistent demand for housing since the last decade, which has hyped up the value per square feet rate of the luxury homes segment, especially the newly constructed ones. Properties in the western zones have picked up well with the city's advent of IT/ITeS. As a result, marketers have constantly received inquiries regarding buying, new ventures, property launches, and residential sales.

In the first half of 2021, real estate inventory consumption was recorded at around 12000 units. In addition, the extended work-from-home and online schooling movements created a need for more space. Therefore, the market for larger homes has gained pace in West Hyderabad.

Commercial Spaces in West Hyderabad

Over 90% of the Grade A office space, which is sought by Software Companies in Hyderabad and others, is found in the peripheral office markets in West Hyderabad, which include places like Madhapur, Gachibowli, Nanakramguda, Raidurg, and Hitech City. However, the government has been working on expanding office space in the city more fairly and away from the western hub. Regardless, very little progress has been made in the periphery markets in the east and south. Despite the decrease in office space absorption, the IT/ITeS sector—the foundation of the Hyderabad office market—remains the demand leader until the second half of the financial year 2021.

Engineering and manufacturing took centre stage during H2 2021, with their contribution significantly outpacing that of the IT Development industries. Interestingly, most of the section comprised hardware engineers, demonstrating West Hyderabad's emergence as a preferred centre for such activity. While many IT/ITeS firms chose to occupy co-working spaces or managed offices as a business continuity precaution during the epidemic, others postponed their growth plans. As a result, since 2021, the segment's share has significantly expanded, reaching 25% of the overall absorption in the first half of the financial year 2022.

 

Hyderabad Rental Housing Scenario in 2022

During the pandemic, the mass evacuation of people from their rental spaces has witnessed a full circle, with workspace and schools reopening in 2022.

NoBroker-a, a transaction platform for real estate spaces, has noticed that new rental properties rented out in 2022 were around 4800 in Hyderabad.

These new rentals were added in the last three months. According to market insights, approximately 40% of rental deals are closed less than six hours after posting properties. The Hybrid working policy is the primary reason for the increase in demand for Residential Properties in Hyderabad. It has enabled professionals to spend more time at home with this. Their significant preference is gated communities because of various facilities, amenities, and, most importantly, the power backup option for a seamless work-from-home experience.

The metropolitan cities are witnessing an increase in average rental appreciation of 12% compared to last year. Residential Properties near IT Hub have been overwhelmed with the rental listing platform for making their housing rent out in just a day. The most in-demand localities in West Hyderabad were Kukatpally, Kondapur, Manikonda, Gachibowli, Kokapet, Narsingi, Tellapur, and Madhapur, noticing an upsurge of 12-15% in rental appreciation. Many tenants make the mistake of waiting for the weekend to search for properties in gated community apartments in high-demand areas. The only way to stand a chance of finalizing the house is by visiting the property owner and providing him with a meager amount as a token.




Is West Hyderabad is the right place for Real Estate Investment ?

Published by : undefined
Apr 12, 2024
hyderabad real estate
In this Story

West Hyderabad- Housing Market Insights

Commercial Spaces in West Hyderabad

Hyderabad Rental Housing Scenario in 2022

A city earlier characterized by Charminar or Hussain Sagar Lake has transmuted into an IT hub in Hyderabad with glowing skyscrapers, financial corporates, innovation intermediaries, business incubators, and global e-commerce firms. The West Hyderabad zone has encountered immense growth in the infrastructure segment over the past few years leading to a boom in the value of real estate housing and commercial spaces as an investment near IT companies.

The presence of SEZs, backed by the IT Industry, in West HyderaResidential Propertiesbad has significantly increased the importance of both residential and commercial spaces. West Hyderabad has become a leading employment hub in India, with the emergence of a new SEZ policy attracting foreign direct investment (FDI). Telangana State has been gaining recognition for its infrastructural development and increasing employment rate. As people from all over the country have been moving to the city for more opportunities, many young professionals will look for housing spaces near their offices.

The development mechanism for real estate in Hyderabad is still the western corridor, which includes the suburbs from Kukatpally to real estate in Kondapur and Manikonda to Residential Properties in Gachibowli. The demand for real estate investment in that area is still high even if many IT offices aren't fully occupied by staff due to the impact of coronavirus's newly emerged hybrid model. As a result, real estate in the Financial District, Hitec City, and other western suburbs continue dominating the new real estate investment market.

West Hyderabad- Housing Market Insights

According to a study by 99acres.com, new real estate ventures in the western corridor increased by 250% in the Q4 of 2021, even if overall new launches were relatively low in the quarter from July to September. The survey also said that the most significant market shares were held by 2BHK and 3BHK apartments sized 1,100-1,300 sq ft and 1,500-2,500 sq ft, respectively. Additionally, the market share for 2BHK and 3BHK flats in locations like Kondapur, Gachibowli, Manikonda, Kukatpally, and residential projects near Madhapur ranged from 35%-50% on average.

Between July and September 2021, there was a rise in the launch of mid and high-income segments within residential projects in Hyderabad. Sales initially experienced a decline due to a surge in Covid-19 cases in April 2021. Still, healthy demand from potential buyers helped them recover. Property values in Hyderabad are steadily increasing after being steady for a long time due to the market confidence and anticipation of a rebound. The need for affordable housing has surged in the city's outskirts due to the rise in land prices, especially for residences between Rs. 60 lakh and Rs. 80 lakh, the best investments in Hyderabad and other metropolitan cities.

Premium Property in West Hyderabad

The trend toward premium property has made people more favorable towards buying luxury homes and villas. As a result, there has been a consistent demand for housing since the last decade, which has hyped up the value per square feet rate of the luxury homes segment, especially the newly constructed ones. Properties in the western zones have picked up well with the city's advent of IT/ITeS. As a result, marketers have constantly received inquiries regarding buying, new ventures, property launches, and residential sales.

In the first half of 2021, real estate inventory consumption was recorded at around 12000 units. In addition, the extended work-from-home and online schooling movements created a need for more space. Therefore, the market for larger homes has gained pace in West Hyderabad.

Commercial Spaces in West Hyderabad

Over 90% of the Grade A office space, which is sought by Software Companies in Hyderabad and others, is found in the peripheral office markets in West Hyderabad, which include places like Madhapur, Gachibowli, Nanakramguda, Raidurg, and Hitech City. However, the government has been working on expanding office space in the city more fairly and away from the western hub. Regardless, very little progress has been made in the periphery markets in the east and south. Despite the decrease in office space absorption, the IT/ITeS sector—the foundation of the Hyderabad office market—remains the demand leader until the second half of the financial year 2021.

Engineering and manufacturing took centre stage during H2 2021, with their contribution significantly outpacing that of the IT Development industries. Interestingly, most of the section comprised hardware engineers, demonstrating West Hyderabad's emergence as a preferred centre for such activity. While many IT/ITeS firms chose to occupy co-working spaces or managed offices as a business continuity precaution during the epidemic, others postponed their growth plans. As a result, since 2021, the segment's share has significantly expanded, reaching 25% of the overall absorption in the first half of the financial year 2022.

 

Hyderabad Rental Housing Scenario in 2022

During the pandemic, the mass evacuation of people from their rental spaces has witnessed a full circle, with workspace and schools reopening in 2022.

NoBroker-a, a transaction platform for real estate spaces, has noticed that new rental properties rented out in 2022 were around 4800 in Hyderabad.

These new rentals were added in the last three months. According to market insights, approximately 40% of rental deals are closed less than six hours after posting properties. The Hybrid working policy is the primary reason for the increase in demand for Residential Properties in Hyderabad. It has enabled professionals to spend more time at home with this. Their significant preference is gated communities because of various facilities, amenities, and, most importantly, the power backup option for a seamless work-from-home experience.

The metropolitan cities are witnessing an increase in average rental appreciation of 12% compared to last year. Residential Properties near IT Hub have been overwhelmed with the rental listing platform for making their housing rent out in just a day. The most in-demand localities in West Hyderabad were Kukatpally, Kondapur, Manikonda, Gachibowli, Kokapet, Narsingi, Tellapur, and Madhapur, noticing an upsurge of 12-15% in rental appreciation. Many tenants make the mistake of waiting for the weekend to search for properties in gated community apartments in high-demand areas. The only way to stand a chance of finalizing the house is by visiting the property owner and providing him with a meager amount as a token.




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