is a city rich with cultural heritages. It is India’s sixth most populous urban city. Today, Hyderabad has evolved into an IT hub, which propelled the growth of real estates in the city. Similar to Mumbai where real estate developers like the Epitome by Radius Developers have sold lots of units
Hyderabad also became a home for big pharmaceutical and biotechnology industries. In the past decade Hyderabad went through tremendous growth in the realty sector and emerged as one of the favorite destinations for real estate investors and developers. There was a healthy appreciation of capital values and strong demand in the residential market. Average residential capital values rose from Rs 1000 per sq ft in 2000 to Rs 3100 per sq ft by the 3 quarter of 2008. It indicates an appreciation of about 15 percent per annum.
Causes of Decline:
The global financial meltdown had an adverse effect on the real estate sector. Hyderabad’s realty is taking more time to recover while some markets remained immune in its counterpart. There was a slight fall in the residential capital values from Rs 3100 per sq feet to Rs 2980 per sq feet during the period from 2008 to 2010. There have been fewer project launches than average in Hyderabad during this time. Although slower than before, other cities have been more resilient to this crisis and are still registering a positive growth rate.
The difference between the performances of two domestic markets can be due to any reason. But here in this case, specifically the culprit can be pointed out. And the culprit is the political uncertainty and bureaucracy surrounding the formation of a separate state of Telangana. Telangana region comprises 10 districts and is the largest geographical block in Andhra Pradesh which alone accounts for 75 percent of the total revenue.
Activists who are supporting this movement argue that despite of all these, the region is grossly neglected when it comes to budget allocation and distribution of water. In 2009 proceedings were made in order to separate it from the state of Andhra Pradesh. This uncertainty and lack of decisiveness had created problems for the real estate market in Hyderabad.
The last two years have shown immensely positive trends for both residential as well as commercial real estates. The buyer sentiments have improved considerably and there has been a gradual increase in residential demand and absorption as well. However, it is yet to reach the absorption level heights achieved in between 2007 and 2008. The commercial real estate sector is still very much in the expansion mode. Moreover, the corporate client did a good job of not letting the political scenario upset their expansion plans in the Nizams’s city Hyderabad. The two most notable MNCs who choose Hyderabad as their home in India are JP Morgan and Facebook.
Is this the best time to invest for a real estate in Hyderabad?
In this Cyber city of India, all is still not lost yet. Hyderabad right now presents the lowest risk to investors among all the real estate markets since the price is at its fundamental level. Now, other markets are saturating and are marred by speculative market tactics but Hyderabad is relatively free from these vices. The realty is seriously undervalued in Hyderabad which in turn presents an opportunity for the buyers.