Ever-increasing demand for housing in Hyderabad

Hyderabad: Despite the recent steep hike in land rates and property prices, there is an ever-growing demand for housing units in Hyderabad. When compared to rest of the cities in the Telugu States, the cosmopolitan city seems to be the only choice of property buyers who seek good returns on their investment.

Owing to various infrastructural facilities and locational advantages, most of the NRIs and retired persons prefer to settle here. The growing number of IT companies and other manufacturing industries led to the influx of many people each day increasing the demand for residential spaces in the city.

Public transport connectivity, availability of land, affordability of properties and stability in the government are some of the important factors that made the city anideal destination for property investors as well as individual home buyers.

There was no unusual rise in real estate rates across Hyderabad region, except gradual appreciation. For the first time after formation of Telangana, the State government has revised market values of land and stamp duty rates during last month. However, this made no difference in tractionamong the investors.

P Manoj Kumar, an IT employee from US, says: "I have been looking to buy a suitable villa in and around Shamshabad. My home-buying plans delayed due to the pandemic. Meanwhile, I come to know that the prices have gone up. Still, I didn't drop my idea as I am sure that the rents will also grow accordingly."

Explaining the reason to invest in this city only, the Andhra-based NRIsaid, "If I spend the same sum of money on a property at any other city in Telangana or AP, the rental income and scope of appreciation may not match to that of Hyderabad."

Unlike the rumoursof huge migration and uncertainty post bifurcation of erstwhile Andhra Pradesh, there is a rising demand for properties in Hyderabad. All the speculation proved to be wrong in less time with Telugu people from across the globe showing interest to investinthe capital city of Telangana.

Moreover, successive governments in AP failed to make Amaravati a world-class city as announced while setting up the new capital. Vizag gained traction after the announcement of capital trifurcation. But, the port city couldn't attract more property investors due to landshortage and higher rates.

"The cost of construction remains same in both the States, onlythe land rates become a burden to the home buyers. The average price of land component in a housing unit in Hyderabad is Rs 1,300-1,500 per sft, whereas it is around Rs 3,000-3,500 per sft in other cities," said Y Kiron, Chairman ofSuchirIndia.

"Growth in real estate is proportional to infrastructural developments in the city. Both the State governments are competing with each other in ease of doing business ranking and inviting multi-national companies to set up their offices here," said Chandan Kumar Jha, MD of Tricolour Group.

"Similar to Hyderabad international airport, a greenfield airport is being developed at Bhogapuram near Visakhapatnam. Such a healthy competition would definitely help the real estate sector. Even the Covid-19 pandemic didn't affect the housing sales in Telangana," he adds.