Hyderabad, the capital city of Telangana, is experiencing a real estate boom like never before. With the addition of approximately 35-38 million sq. ft. of high-quality business parks in the next two years, the city's real estate market is offering numerous opportunities for homebuyers, investors, entrepreneurs, and more.
A Hub of Global Corporations
Thanks to its robust business environment, Hyderabad has become a favored destination for global corporations. These companies have established outsourcing centers, back offices, R&D facilities, and regional headquarters in the city, leading to a surge in demand for office spaces. As a result, the investment-grade office stock in Hyderabad has surpassed 100 million sq. ft. in 2022 and is projected to reach 119 million sq. ft. by the end of September 2023, a remarkable 63% increase since 2019, according to a CBRE report. In fact, Hyderabad emerged among the top three cities dominating office space leasing in January-September 2023, with a 35% YoY increase. Key sectors driving this absorption include life sciences, BFSI, and technology.
Flourishing Residential Market
Hyderabad's real estate market is not limited to office spaces alone. The city is also witnessing major launches in the residential sector, with over 1,30,000 residential units expected to be launched in the next two to three years. The expansion of the technology sector and industrialization has led to residential development near key office micro-markets such as the IT Corridor and Extended IT Corridor. The increasing demand from employees of multinational companies and the development of high-quality infrastructure have elevated the residential market and raised overall living standards. With its rapidly developing infrastructure, Hyderabad is positioning itself as a promising destination for real estate investment.
Emerging Submarkets
Several emerging submarkets in Hyderabad are experiencing significant growth. Areas like Gachibowli, Kondapur, Nallagandla, Kokapet, Puppalaguda, Narsingi, Tellapur, Kompally, and Shamirpet are witnessing a surge in popularity due to factors such as the expansion of the IT corridor, improved connectivity through the ORR, and the presence of schools and healthcare facilities. These emerging submarkets offer great potential for both investors and homebuyers.
A Bright Outlook
The future of Hyderabad's real estate market beyond 2023 looks promising. Ongoing infrastructure development, the thriving IT and corporate sectors, and a rising population are expected to drive further expansion. Additionally, there is a significant development trend in the market for spacious 3BHK units above 2,000 sq. ft., indicating a preference for larger residences. India's real estate sector, in general, is projected to maintain its growth momentum in the coming quarters, with domestic inflation levels improving and the country's economic growth outpacing global trends. Furthermore, the RBI's decision to maintain the repo rate is expected to provide further support to the sector in 2024.
In conclusion, Hyderabad's real estate market is thriving and offers a multitude of opportunities for buyers, investors, and entrepreneurs alike. With its robust business environment, expanding residential sector, emerging submarkets, and a promising future outlook, Hyderabad presents itself as an ideal destination for real estate investment.
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