Plotted developments accounted for about 64% of the total residential inventory in the Hyderabad real estate investment front during the Jul-Sep 2021 quarter. Most of these were concentrated across the peripheral localities of the city. Whether this surge in supply of plots stemmed from factors such as cautious developer behaviour, affordability notion, or enhanced investment prospects is yet to be determined. At Square Yards, we collated a few of the plausible reasons for you!
With more and more home buyers now looking for spacious affordable units in the wake of the pandemic, the residential segment was anticipated to tweak its offerings sooner or later. Resonating these changing buyer sentiments, the supply trends in the July-Sep quarter, 2021 reflected the same in the top cities, where land space was not a limiting factor.
Hyderabad was one of the key cities where this trend was apparent as 64% of the total residential inventory, as per Square Yards listings, was tilted towards plotted developments in the third quarter of 2021. What was more interesting was the fact that more than half of the residential inventory in the city was concentrated in the affordable segment. If both these data facts are read together, it could be understood that affordable plots were the most available property type in the city during Q3, 2021.
Plots and Land Investments in Hyderabad are here to stay!
Historically residential inventory in Hyderabad has always been inclined towards plots and independent homes. As is the case with most cities, in Hyderabad also, the apartment culture came in way later, thanks to urbanization and the resultant development of IT hubs in the city.
The developer fraternity in the city have always been quick to respond to the changing buyer preferences and hence apartment projects have mushroomed in Hyderabad in the last decade or so. However, with the ranging pandemic, people have realized the importance of, first, investing in real estate and secondly having spacious homes. Corroborating this change in preferences, residential inventory, in the city has been largely inclined towards plotted developments this year.
In the post-Covid era, amidst the lurking uncertainties and skeptical behaviour of home buyers, developers seem to be focusing on coming up with more alternatives, which are not only affordable but also render higher returns.
Majority of the builders have curated their offerings to capitalize on the buyer segment that is not looking to invest a large sum of the money but still want to secure a long-term investment by opting for plots.
The requisites stated above seemed to go quite in sync with the plotted developments available in the peripheral regions of Hyderabad. As per Square Yards data, about 46% of this supply stemmed from the South Zone, distantly followed by the East and the West zone accounting for 21% and 17% of the total share respectively. Almost 50% of these properties were priced under Rs 30 Lakhs. What was interesting to note was that most of these affordable (under Rs 30 Lakhs) options were located in the southern zone.
South Hyderabad: Poised for residential boom
South Hyderabad has been gaining preference as an affordable investment option in the city. This is more to do with the fact that the outskirts of the zone offer a plethora of affordable options particularly as plotted projects. As per data with Square Yards, about 46% of the affordable supply segment in Hyderabad was concentrated in the Southern zone. Localities namely Shadnagar, Kadthal, Yacharam, Maheshram, and Kothur in South Hyderabad had more than 70% of the listings for plots and astonishingly more than half of the properties in all these localities were priced less than Rs 30 Lakhs.
Also, as more and more buyers are looking for residential properties away from the main cities but at the same time clinging on to perks of greater connectivity, affordability, and vicinity to growing economic corridors, the peripheral region especially the south zone seems to cater and fulfill all these criteria. The region, apart from surrounding the international airport at Shamshabad, is home to localities such as Adibatla, that are fast developing as the next IT hub. Moreover, multiple infra development projects have also been approved over the last few years in the zone adding to its prospects.
Thus, at a time when every inch of land around the world is getting costlier with each passing day, investing in plotted developments in the outskirts of emerging markets can surely be asserted as a sound investment move.
With multiple options present for plotted developments under a price tag of Rs 30 Lakhs, Hyderabad is surely on its way to garnering some investor and long-term end-user interest.
