The latest reports and several studies state that Hyderabad is currently the hottest investment destination for real estate in the State of Telangana. Prior to the Assembly polls which are slated for the 7th of December, 2018, land prices have been increasing rapidly. Prices of plots have increased by close to 3 times per acre as per reports. Post Assembly elections, the prices of residential property are expected to rise by around 10-15% as per estimates and commercial rentals should go up by anywhere between 20-25% over the next year or so based on forecasts. Land prices have currently increased by close to 20% over the last year and prices have increased by a whopping 30% in the residential apartment category.
The major reasons behind the growth of the Hyderabad real estate market include infrastructure development projects undertaken by the present Telangana Government and other policies which are friendlier for investors. Several companies are expanding their operations in the city and several skilled professionals are migrating to Hyderabad for better work opportunities. Hyderabad is one of the top destinations for realty investments in the country, having drawn $793 million which is more than the $694 million garnered by Bangalore as per reports.
In spite of construction costs having gone up by more than 25% over the last couple of years, investors are appreciating the stability in Hyderabad and unsold inventory for residential real estate has gone down rapidly. Commercial realty markets have seen the new addition of approximately 33 million sq. ft. over the last 4-5 years as per reports. On the outskirts of the city, land prices were earlier at Rs. 1 crore per acre and they have now touched close to Rs. 3 crore per acre.
Hyderabad also offers an advantage to companies since it has the lowest office rentals in comparison to other key markets such as Bangalore and Chennai. In the first three quarters of this year, around 13, 640 new units were launched with 90% of this tally being apartments. The remainder were villas. In the same period, roughly 13, 650 units were sold as well. High demand in the commercial real estate sector is influencing the residential segment positively and a record 8, 313 units were sold in H1 2018 according to reports. Several premium residential projects are also coming up in Hyderabad including Lodha Athena, Mahindra Lifespaces Ashvita and LnT Serene County among many others.
