Hyderabad is the perfect amalgamation of heritage and urbanization that has led the city to be one of the preferred cities for migration and consequentially a real estate hub. The land of rich culture, over the years, built its reputation of a perfect city to accommodate IT hubs, commercial spaces, retail outlets, and residential developments. The real estate in Hyderabad, owing to the space availability and lesser gestation period of construction, has witnessed a progressive graph.

Hyderabad checks off majority of the requirements of real estate –

1.      Commuting infrastructure – The rail, road, air connectivity is of top-notch quality with the Outer Ring Road (ORR) passing through the center that makes inter-state commuting smooth and convenient. The metro establishment, although not in entirety, has eased up connectivity between larger distances.

2.      Convenience infrastructure – The facilities encircling health, daily convenience, education, and workspaces is well established with big names being present in the city.

3.      Social infrastructure – Being culturally rich and space abundant, a person can spend a full year involving themselves in unique set of recreational spaces. The density of malls, retail outlets, local markets, and highstreets add vibrancy to daily life.

4.      Space – The abundance and availability of space makes it a preferred location of establishment. This has led the city to face rampant urbanization with the accumulation of tech companies, retail outlets, FMCG brands etc.

5.      Brand building – Presence of both national and local brands in line of construction and management strengthens the portfolio of the city as a real estate hub.

As a result of these compliances, real estate in Hyderabad has seen a significant growth. Not only residential, even commercial and retail spaces are lucrative options for investors looking at higher returns. Let us look into the scope of investments in real estate in Hyderabad –

1.      Commercial spaces – with the huge influx of start-ups in tech industries, the need for commercial spaces such as office space, co-working spaces, and independent establishments are on the rise. The average rental yield on commercial properties (depending on the typology) is 7 – 10%.

2.      Residential spaces – residential properties in Hyderabad have seen a significant growth is terms of both supply and demand. On one hand, better developers have started foreseeing good absorption and local names raising their development quality while the market sentiment, owing to rampant development, is getting positive in both outright and rental. The rental yield in the last 2 quarters of 2024 has been a remarkable 3.5 – 3.7%.

 

Based on the pace of holistic development in terms of infrastructure, better connectivity, and accumulation of quality construction, below are the listed locations that might prove to be lucrative from an investment point of view –

1.      Gachibowli

2.      Hitec City

3.      Narsingi

4.      Kondapur

5.      Kukatpally

6.      Kokapet

7.      Manikonda

8.      Financial District | Tellapur

9.      Kompally

10.  Rajender Nagar