Investments are a game-changer for investors. Sometimes small investments lead to good returns and those returns help to achieve bigger goals. But where to invest’ is the right question to ask and consider before thinking of making any investment. When it comes to India, Most people either choose to invest in Share Markets or Commodities Markets, and there are few who invest in Real Estate.
“Days have gone when people use to invest money on Gold.”
Hyderabad is at the helm of massive growth. While the property market is sluggish in a ton of other major cities across the nation, it is flourishing in the capital of Telangana. And for whoever thinking of investing in real estate, it’s the right time to take a shot at it. Whether you are looking to settle down in a 2bhk apartment in hyderabad or considering adding to your portfolio of investments, Hyderabad makes the case for being the best bang for your buck.
Hyderabad’s organised real estate industry has witnessed investments of about $1 billion during 2019-2020 and is expected to see further surge in investments in the coming quarters. Majority of the investments will go into the development of commercial offices and residential skyscrapers.
This growth indicates that occupiers are likely to expand their operations owing to investment-friendly policies of the State government, CBRE said. It also expects sustained occupier interest in quality developments in the coming quarters in the city.
When compared with other prime housing markets, developers in Hyderabad are not struggling with huge inventory stock either. At the end of 2020, Hyderabad had an unsold inventory of 30,071 units, after seeing an annual decline of 9%. This is the lowest level in any big city during the quarter, in fact, Hyderabad contributed only 4.6% to the national unsold inventory which currently consists of 7,86,061 units across eight prime residential markets. Inventory overhang is also the lowest in Hyderabad, where builders would take approximately 25 months to sell off the unsold stock at the current sales speed.
Now the comparison with the unsold inventory in Bengaluru there is a total of 76,792 unsold units in the city and these would take approximately 36 months to find takers. In case of Chennai, the inventory overhang is 39 months while the stock consists of 35,908 unsold homes. These impressive figures assume greater significance, when seen in the light of the fact that housing markets globally are currently under tremendous pressure, because of the Coronavirus pandemic which has battered the economy and impacted consumption.
Advancement in Infrastructure
The government of Telangana is on a roll with giving the city a major infrastructure upgrade. Some of its moves include strategic road development, airport expansion, metro rail expansion, construction of an expressway, implementation of projects such as an Aerospace Park SEZ and Gaming and Animation Park, and ironing out utility-related woes.
Government Policies on the real estate
The Telangana State Government has imposed a few regulations that will boost the real estate sector and ease transactions between buyers and sellers. The implementation of Government policies like RERA, GST, and the past Demonetization has worked in favor of residential home buyers and sellers. This has definitely boosted the real estate sector.
Amongst the other regulatory actions, it is the RERA that has piqued the interest of the buyers to invest in the real estate sector. This act stands for complete transparency in the sales and transaction process, mandatory registration and strong penalties.
Furthermore, the implementation of RERA has also improved the activities in the commercial real estate sector that has created more job opportunities in the city. More opportunities mean a higher demand in the residential real estate sector.
With unlimited job opportunities and infrastructural advancement, Hyderabad is indeed experiencing a boom in residential projects compared to the other metro cities.