Hyderabad and Property

With close to 7 million people living in the city, Hyderabad is perhaps the 6^th largest metropolises in the country. It is famous for its visually appealing and ancient architecture; the city’s is a fusion of buildings and designs of two distinct cultures. It has beautiful mosques and gardens reminiscent of the age of the Nawabs and a large number of gorgeous Hindu temples too can be found in the city.

So what is the latest architecture to grace the skyline of Hyderabad? Well to be perfectly frank it consists of modern high rise apartments made of brick and mortar and sleek office buildings made of steel and glass.

The demand for such new constructions in Hyderabad has been welcomed by most citizens of the city who see it as a mark of progress. Possibly even those who today construct such offices and apartments in Hyderabad may imagine that if they do not, their children may one day have the opportunity to live in such homes. Whether it is a realistic hope perhaps no one can say with any deal of certainty, what can be said with certainly is that, not meaning to use the word vulgar derisively, vulgarity is omnipresent in many parts of the country, yet vulgarity is a sign of vigor. What such vulgarity may indicate is that people who once had no money or little money have now made a lot of money and are willing to flaunt their new found wealth.

Such display of “vulgarity” leads to the purchase of luxury apartments in Hyderabad and many other cities in the country.  Rather than being condemned such display of wealth by the newly rich should be condoned, as it leads others to emulate the display of wealth and leads them too becoming rich or at least seek a better lifestyle than they otherwise might have.

Once people suddenly have more money than they know what to do with, what do they do with it? Well after they’ve splurged on fancy cars and jewelry and come to their senses, many in fact purchase quality real estate.

For such nouvelle rich real estate in Hyderabad is a good investment, the price of homes here has appreciated by over 14% during the past 3 years and there is every reason to suspect it will continue its upwards trajectory for the foreseeable future. An added benefit of purchasing a home as opposed to flashy automobiles is that home prices don’t go down in value, over time a home will almost certainly appreciate in value and an automobile (not considering vintage automobiles which do tend to appreciate in value) will almost certainly depreciate in value.

Many new projects in Hyderabad are built to cater to the spendthrift habits of the newly wealthy and investing in property in Hyderabad is an avenue for many to grow their portfolio of real estate as well as grow their net worth as well.

Residential property in Hyderabad, though not as pricey as in Mumbai, may also be less prone to the wild price swings as property in the comparatively larger cities is and may be a good hedge against investments made in larger cities like Mumbai and Gurgaon where prices tend to change more dramatically.

Home sweet Hyderabad

To own property in Hyderabad may be the ardent desire of many people in the state of Telangana. This desire is not only warranted but also one within reach of many educated people in the state, and if there is one thing Telangana has no shortage of it is educated people. It came as a surprise that all three IIT toppers this year were from the northern part of the country; the biggest surprise was to the people of Telangana who alone had grown accustomed to achieving this feat. 

An attractive locality in Hyderabad and the location of many new projects in Hyderabad is Nallagandla.  Located on the outskirts of the city, Nallagandla is an up and coming locality which is touted as an investment destination for real estate in the city. Apartment prices at Nallagandla have already appreciated by close to 20% over the last 3 years and are currently priced at close to 4200 rupees per square foot. 

Much of the property at Nallagandla is priced within the reach of middle class homes and 2 bedroom apartments on sale at price tags of 35 lakhs or lower are commonplace.  While the price of 2 bedroom flats at Nallagandla reveals low variability between the prices of 2 bedroom flats constructed by distinct developers, the range of prices for 3 bedroom flats constructed by different developers tends to be wider and hence shows a greater variability. For example, a great deal of 2 bedroom flats on sale at the location are priced at or near 35 Lakhs, whereas the prices for 3 bedroom flats can be found to range from 40 Lakhs to 80 Lakhs.

The trend mentioned above may not be unique, perhaps hinting that some developers at Nallagandla are colluding to sell 2 bedroom flats at close to rates mutually agreed upon, and attempting to sell 3 bedroom flats at slightly exorbitant rates. 

Nallagandla, is the site of many new projects in Hyderabad as well as a great many upcoming ones. With very few developments that are more than 5 years old and with many new developments under construction, Nallagandla is in the midst of a construction boom and is home to many new residential projects in Hyderabad. 

Property in Hyderabad will always sell for a premium, as a metropolis with a higher standard of living than many others in the country and with a powerhouse technology sector there is little to indicate that a city like Hyderabad could ever go bust. Commonsense would indicate that with the massive urbanization occurring in our country, there is little chance that people from all across the country would stop coming to seek opportunities in Hyderabad.

All of these newcomers into the city, whether professionals or not, will aspire to own apartments in Hyderabad. Many will work tirelessly to attain this goal; a great number of them will succeed. Those who do will likely take a home loan from a bank, the money taken on loan from the bank will go on to become part of a developer’s revenue. The developer will use this revenue and construct a development for those who took a home loan.

As long as tens of millions of Indians all across the rural and small urban centers of the country seek and find opportunities in the nations large urban centers, investing in property is a good bet, if not a great one.