The real estate market in India is one of the fastest growing market in the world. This growth is even faster when it comes to the major metro cities or tech hubs of the country like Bengaluru or Hyderabad. People from all over the country enter these cities like swarm of bees in search of a prospective position in an esteemed company. Bangalore and Hyderabad are two of the most important cities in India’s real estate market as they both have seen significant growth in recent years, driven by the presence of technology based companies and a young, aspiring and educated workforce. After the strike of giant Pandemic, the work from home or remotely working for your position is no longer accepted, instead the IT companies have introduced hybrid model of work which allows employees to opt for both work from home and work from office model. It is a proportionate mix of these two concepts.
From the end of 2022, Hyderabad real estate market is witnessing a skyrocketing sale, owing to the reopening of maximum offices. According to the local brokers, the rentals showed at least 20-30 percent while the capital values of properties have jumped by 10-15 percent. Migrant workers who are coming from other states to stay here are opting for Co-living or paying guests options because of its cost effectivity. In just one year, the landlords have increased rentalsfrom Rs 32,000 to Rs 48,000. Realty experts are apprehending that Hyderabad is following the footprints of Bengaluru real estate marketand started becoming in the forefront of the real estate market.The rentals have consistently increased in the last six months and shot up by 30 to 50 per cent.
Much of the real estate demand in Hyderabad is driven by the IT sector clustered across the western corridor in Hyderabad—around areas like HITECH City, Kundapur and Gachibowli. The south, closer to the airport, too has slowly started seeing developments. The real estate market of Hyderabad is improving in leaps and bounds with 160 percent of office space absorption in the past five years. Hyderabad is the house of fewof the biggest pharmaceutical companies in India, which has further boosted the demand for commercial properties as it is creating more job opportunities.
According to the share market experts, a person earning less than 30,000 cannot be able to live in and around the clustering IT sectors, instead they can get an affordable place in the northern and southern parts of the city.In few posh localities, rent for a 2BHK is around Rs.25,000 per month and Rs.35,000 to Rs.60,000 for a 3BHK. With regard to standalone buildings, having limited apartments, the rent is anyway more Rs 25,000 per month. The eastern part of Hyderabad having Ramoji Film city and Secunderabad is having affordable office spaces, but northern part is quite opposite of this having surge price on rentals.
The rent for a 2BHK in prime areas towards the western IT corridor is between Rs.20,000 and 25,000 for unfurnished ones and between Rs.30,000 and 35,000 for furnished ones. If you want to invest and buy a flat, then you have to pay on average 10,000 to 15,000 per square feet. Rent in HI Tech city went up from Rs.23,000 to Rs.27,500. In Gachibowli, it was risen up from Rs.22,000 to Rs.26,500.
Though Hyderabad is definitely following the footsteps of Bengaluru, but still it is quite bearable compared to Silicon Valley Bengaluru. Based on data, the cost of living in Bengaluru is 9 percent higher than Hyderabad. The prime reason of this is the availability of supply was limited in many areas, but in Hyderabad supply remained fairly good, helped the price to be on a particular level.
According to the data, 30,710 units were sold in Bengaluru in H1 2023 which is 23 percent higher than H1 2022, while in Hyderabad 27,845 units were sold in H1 2023 and around 24,330 units in H1 2022, exhibited an annual growth of 14 percent. The data from real estate market says that, the real estate market of Hyderabad and Bengaluru will continue to grow further 5-10 percent more in coming years.
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