As realty markets in Mumbai, Delhi and Kolkata begin to stabilise post-demonetisation, GST and RERA, it emerges that Hyderabad was unaffected by all three factors.
Data from property consultants Anarock show that Hyderabad saw housing unit sales grow by nearly 32% in the period between 2013-14 and 2017. The data also indicates that the number of unsold stock in that city has declined from 35,600 units in 2016 to nearly 28,000 in 2017.
This steady growth is a result of a culmination of factors, analysts say — a positive outlook after the formation of Telanagana in 2014, aggressive infrastructure projects, relatively low rents, and incentives for business.
The long-awaited Hyderabad Metro began operations in November, with 72-km runs across the city. The eight-lane, 158-km Outer Ring Road has eased commutes too. Hyderabad now joins Ahmedabad, as the only infrastructure surplus cities in the country, says Ashutosh Limaye, head of research and real estate intelligence services at JLL.
“New housing or commercial real-estate does not act as a burden on the city. Traffic movement is fast and one can commute from one end to the other in less than 40 minutes,” Limaye says.
This push has positioned Hyderabad as one of the most active residential and commercial markets in recent times, adds Anarock chairman Anuj Puri.
“With rents lower than Chennai and Bengaluru, corporates are increasingly looking to expand in Hyderabad, thereby making it a prominent IT/ITeS hub,” says Puri.
Apple entered Hyderabad in 2016, setting up a 2.5 lakh-sq-ft office space which they then doubled within the year. Amazon and Microsoft both occupy over 1 lakh sq ft of office space each.
“The commercial leasing and absorption activity has resulted in the emergence of micro markets such as Uppal, Pocharam, Kukatpally, Gachibowli, Madhapur and Cyberabad,” says Shubika Bilkha, director of the Real Estate Management Institute (REMI).
Growth of the IT/ITeS sector has further resulted in the development of the organised retail sector, she adds. “The warehousing segment too has garnered traction.”
The corporate sector boom has also resulted in a large salaried class boosting demand for housing.
“Markets such as Kondapur, Gachibowli, Chandanagar, Kukatpally, HI Tech and Madhapur are some of the popular markets for these professionals. With relatively better-priced properties and the opportunity to live close to work, Hyderabad offered promise even in the tepid market of the past few years,” Bilkha says.