Hyderabad’s reality market has shown phenomenal resilience against testing times, erstwhile booming real estate markets in India reeled under the pressure of a demand slowdown that started late in 2014, the capital city of Telangana, also known as the city of Nizam’s and is the biggest pharmaceutical hub in India today, stood out in contrast.
The inflation of rates in Hyderabad, coincided with the bifurcation of Telangana and Andhra Pradesh becoming two separate states in 2014. The fact that Hyderabad continued to feature among the best cities, in terms of quality of life, also meant that the demand for housing was not as badly impacted as in other cities. According to our surveys data, the average rate of property in Hyderabad as year ending 2020, was INR 5,694 per sq. ft. after undergoing a 6% increase in the past one year. With this price growth, Hyderabad has become the second most-expensive property market among the eight prime Indian residential markets that include Ahmedabad, Bengaluru, Chennai, MMR, NCR, Kolkata and Pune. Mumbai remains the most expensive property market in India. “Price growth in Hyderabad has been significant in the past five years, the city has now turned into the most expensive south Indian market and the most expensive real estate market after Mumbai. Considering the prevailing circumstances, growth may remain muted in this parameter in the coming quarters,” says Jamal Afsar, Chairman of a real estates.
Market Inventory
When compared with other prime housing markets, developers in Hyderabad are not struggling with huge inventory stock either. At the end of 2020, Hyderabad had an unsold inventory of 30,071 units, after seeing an annual decline of 9%. This is the lowest level in any big city during the quarter, in fact Hyderabad contributed only 4.6% to the national unsold inventory which is currently consists of 7,86,061 units across eight prime residential markets. Inventory overhang is also the lowest in Hyderabad, where builders would take approximately 25 months to sell off the unsold stock at the current sales speed.
Now the comparison with the unsold inventory in Bengaluru there is a total of 76,792 unsold units in the city and these would take approximately 36 months to find takers. In case of Chennai, the inventory overhang is 39 months while the stock consists of 35,908 unsold homes. These impressive figures assume greater significance, when seen in light of the fact that housing markets globally are currently under tremendous pressure, because of the Coronavirus pandemic which has battered the economy and impacted consumption.
Why reality market is different from other?
While some pinned Hyderabad’s success on new infrastructure developments, others cite the city’s brand image. As the connectivity in the city improves owing to the Hyderabad Metro, the city has also retained its top position in Mercer’s Quality of Living Survey 2019 for the fifth time in a row. At the time when awareness about cleanliness is growing among home buyers because of the increase in pollution levels, Hyderabad has also managed to score better on this parameter. In the centre’s Swachh Survekshan 2020 survey, the Greater Hyderabad Municipal Corporation (GHMC) was voted the ‘Best Mega City in Citizen Feedback’.
On the other hand, Telangana is making rapid strides in the situation where the real estate sector has fallen into a state of irreversibility due to the Corona across the country. The realty has grown as never before in the past 10 years. Housing and commercial complexes in all the eight major cities of the country, including Delhi, Bengaluru and Mumbai, have reportedly slowed down completely.
But, Hyderabad has made 90 per cent progress in the shortest period. In the past six months in the housing sector, nationwide openings have fallen by 43 per cent and sales by 54 per cent. But in Hyderabad, 64 per cent of sales were recorded.
Considering the construction work in all the major cities across the State, the city of Greater Hyderabad has the highest development. Construction is expanding rapidly in the twin cities each year. Construction work in the capital city has not slowed down despite heavy rains and floods causing unpredictable damage.
‘Baldiya’ disclosed that 12,850 structures were approved across the Greater Hyderabad in 2020. Through this, the GHMC has received Rs 786.50 crore revenue through taxes. In January 2021, the GHMC has issued permits for the construction of approximately 9,840 independent houses and 1,550 apartments (group housing). In addition, town planning authorities have approved the construction of 350 commercial complexes, 165 high-rise residential buildings, 75 high-rise commercial buildings, and multiplexes.
The construction sector in the Greater Hyderabad is making progress as the Telangana government is facilitating building permits and granting permits on scheduled days. Development is booming with the launch of the Development Permission Management System (DPMS), an online building permit system, on June 2, 2016. This policy was developed by the representatives of the leading companies in the country. Issuance of layout permits, issuance of occupancy certificates and building permits are fully enforced online.
Building permits are issued in 21 days as part of the Ease of Doing Business. Simplification of building permit regulations, redressal of issues in the city level for development of real estate sector and reduction of slabs have also contributed to the development of this sector.
The real estate sector in the Greater Hyderabad has made significant progress since the formation of the State. From 2010 to 2014, approvals of 5,72,657 SFTs were issued for 733 commercial projects under the GHMC limits. Permission has been granted for the construction of 10,43,550 SFTs for 917 projects from 2015 to 2019. Permits were issued for 11,240 housing projects from 2015 to 2019 and during the same period, 65,953 building permits were issued.
The Development Permission Management System (DPMS) policy implemented under the GHMC limits has received special praise from the Central government. From 2010 to 2014, Rs 2,600 crore revenue was generated, and from 2015 to 2019, 65,953 permits were issued and revenue of Rs 3,900.55 crore was collected.
C Shekhar Reddy, chairman, Indian Green Building Council, urged the government to cooperate in controlling material prices. He appealed to the Central and State governments to support this sector, which provides employment to millions of families. He clarified that the infrastructure in Telangana is many times higher as compared to all States across the country. As a result, the real estate sector is poised to grow in greater Hyderabad city.
G Ram Reddy, president, Telangana Real Estate Developers’ Association, said that the real estate sector is making great strides under the Hyderabad Metropolitan Development Authority after the Corona. He said the sector would achieve 100 per cent pre-eminence in the next two to three months. Construction costs will rise as prices for raw material such as cement and steel have been increased, he said.
More importantly, unlike property markets in the National Capital Region (NCR), Hyderabad has not been at the receiving end of any negative publicity because of large-scale project delays. Our survey data shows that over 15,000 housing units have been delayed by five years in this market, as compared to over two lakh homes in the Mumbai Metropolitan Region (MMR). “Unlike the MMR or NCR, the sizes of housing projects in markets like Hyderabad and Chennai are smaller. Among other things, this also ensures that developers are able to meet project deadlines,” says Farooq Ali, a Hyderabad-based realty agent. “Since developers in this region are focused on luxury projects, the market does not face a problem of plenty either,” Ali adds.
One of the best commercial Hub
Apart from being one of the best residential market, Hyderabad is also equally successful as a commercial real estate market. According to a survey report, Hyderabad is the most active commercial real estate markets during Quarter 3 of the year 2020, accounting for 23.7% and 22.9% share in Pan-India leasing activity.
According to another report by global brokerage firm JLL, Hyderabad’s office market is showing signs of recovery, with a healthy gross leasing of 1.9 million sq. ft. during the July-September 2020 period. Net absorption also grew by 31% from the previous quarter to 1.5 million sq. ft. in Q3 2020. The city saw new completions of 3.3 million sq. ft. during the quarter, with Gachibowli and HITEC City sub-markets being the highest contributors to new supply.
Predictions for real estate trends
Residential sales in Hyderabad has grown by 277% among seven major markets from January to September 2018 as compared to the same period last year. As per our survey reports, an important factor behind the high sales growth numbers was the low base effect on the back of the relatively small size of the residential market.
New launches in Hyderabad was also up by 82% in the first nine months of 2018 as compared to the same period in 2017. If you have an investment horizon of three to four years, then putting your money in a plot developed in a Shadnagar today might just prove to be a judicious decision. Below are the reasons why Shadnagar is a lucrative investment option as far as plots are concerned.
SOUTH HYDERABAD
VALUE OF SHADNAGAR
- The special status of the Hyderabad-Karnataka region to benefit Gulbarga, Yadadri, Raichur, Koppal & Bellary.
- Shamshabad-Shadnagar in the Aviation zone of Hyderabad.
- Well connected to regional ring road outer ring road.
- Equidistant to IT, Hardware, Industrial & Pharma corridors.
Direct link road access to multinational like Proctor & Gamble and Johnson & Johnson - In the neighbourhood of prominent Residential, Educational & Commercial Developments
- Population projected to increase by 8 lakhs residents within 10 Km radius in Shadnagar adding 50,000 direct and 2 lakhs indirect employment.
EAST HYDERABAD
VALUE OF YADADRI
- Yadadri or Bhongir district
Temple City Corridor (Yadadri-Kolanpak -Iskcon) - Multiple Highways(Connecting Warangal Highway & Rajiv Rahadari).
- Situated Between Yadadri & Kolanpak Jain Temple
- Very near to highway connecting Karimnagar & Warangal
- Proposed Kendariya Vidyalaya School at Gowrapalli
- Proposed Metro in Yadadri
Near to Rajampet Mandal Headquarter - Hyderabad Warangal Industrial Corridor
- Very close to Proposed Temple Check post
WEST HYDERABAD
VALUE OF SADASIVPET
- 15 minutes to Sangareddy which is already developed town and Medak Headquarters.
- 20 minutes to Indian Institute of Technology (IIT), Hyderabad.
- Central Govt. proposed NIMZ project ( National Investments for Manufacturing Zones) in 13000 Acres near Zaheerabad.
- 30 minutes to Microsoft, ISB, Infosys, TCS.
- Very close to Pepsi co., Aurobindo Pharma, KIRBY, Toshiba, Pebs planner etc.
- 10 Minutes’ Drive from ORR.
Identifying Real Estate Opportunities
The year 2021 Update The rise in the global economy in the last decade has made each coming year more exciting than the previous one. Industrial progress and development of the real estate economy in South Asia is at its peak. India is the central hub of economic growth right now has set up new standards for multiple global industries. Real Estate industry is one of them.
As far as Hyderabad is concerned, it has been on focus in news because of being a major city where progressive economic success in terms of real estate has proven beneficial for both investors and individuals. The reasons, to begin with, include the Industrial TS-IPASS and the water surety by the Kaleshwaram project.
Furthermore, the advent of the uninterrupted power supply has made the home building and promoting the industry to grow exponentially in this city. Essentials of a golden opportunity in Real Estate in terms of real estate whenever we talk about top opportunities, we should be acknowledging the facts that bring any company on the top. The first factor is definitely the planning of that company in keeping your investment safe. The best investment plan is where the security of your valuable currency is ensured.
But the question is that how this surety comes? It comes from the reputation of that company. The success of its previous projects, market repute, and customer feedback. Also, the quality of onsite projects in terms of building materials, site planning, security services, utility infrastructure and reliability of assurances of in time delivery must be ensured. As a general rule, the location of the project matters a lot in terms of its future development.
Just as an example there is a company of good repute working since 1998, the Green home. Uniquely most builders don’t invest in projects keeping in mind the facilitation of their individual investors who are going to build their dream homes and live there. What found in this company’s previous projects is a sense of understanding from a common man’s perspective of what individuals living in modern cities of today’s progressive India need.
The amenities they provide are worth a living experience. Went through the customer feedback on different forums and found that their previous projects have gained people a lot in their investment plans.
Small or big scale investments were recovered with reasonable profits in comparatively less time. The reasons that discovered for this success is the location of their projects, their planning and timely delivery of what they promise.
Recommended Projects Right now, two of their ongoing projects are worth mentioning. One is the Beverly slopes located near the Rajiv Gandhi International Airport on the road connecting the outer and inner ring roads with top-class amenities and features like a grand entrance, community park, clubhouse, CCTV security services, solar fencing and much more.
The cost of plots is pretty reasonable for all these facilities. These projects have HMDA and RERA approved plots. When we talk about the location of these projects they are located near major hubs of the city including Jalpally road and Shamshabad. The other project is called the English County which is also located roundabout the same area with GaganPahad and Manchu town being nearby.
Furthermore, with Thimmapur Railway Yard and Freight zone becoming operational soon the investments would scale up exponentially in these areas. Also, the facilities near Bangalore highway, the railway station, and airport roads are going to play a major role.
Verdict
The Hyderabad metro, overall road connectivity and modern social infrastructure have made this city of Telangana State a real estate success story in India. Chinna Jeeyar is also a reason to love Hyderabad.
Not only the infrastructure but the historical attractions like Ramanujam Statue, educational institutions like the agriculture university and state-of-the-art health services available in the city have also played a major role in its development making it one of the best choices to invest in real estate right now. #KhabarLive #hydnews
