After witnessing a lull in its real estate markets for the last couple of years, Hyderabad is now on the road to recovery with MNCs and India Inc setting up shop here. A fact that has helped boost sentiment enormously and led developers to launch new projects here. We list the top 5 reasons why Hyderabad’s property market is on the rise.

1) There Is Political Stability

The bifurcation of the state is now old news, with investors appearing gung ho about the city’s fortunes. It helps that the K. Chandrashekar Rao-led state govt has shown interest in improving business sentiment, doing all it takes to make Hyderabad a global city. The TS-iPass Act is one step in this direction, aimed at creating an investment friendly environment. Even realty players are in for good times with the government seriously considering implementing a single-window approval system.

2) Infrastructure Is Improving

The government has taken a keen interest developing Hyderabad’s infrastructure. The Jawaharlal Nehru Outer Ring Road is being planned on the lines of Beijing’s 8 bangles (ring roads) of connectivity, helping people navigate in and around the city within minutes. The upcoming Metro Rail project too holds great promise, as it will connect the eastern and western corridors which are popular IT hubs.

3) Demand For Residential Property Will Soar

The corporate world is clearly in love with the city with global bigwigs like Amazon and Apple having shown keen interest in expanding their campuses in Hyderabad. That’s not all. Blue chips like Infosys, TSC and Wipro have also acquired land to setup new offices. And with more employees coming in, the residential market is definitely set to boom. The city’s developers are actively building new stock to cater to this expected demand, with even out-station developers like Mumbai’s Kalpataru launching projects.

4) Property Rates Are Still Affordable

Hyderabad also boasts of relatively affordable property rates. The Central Business District (CBD) areas of Banjara hills, Jubilee Hills and Panjagutta are relatively expensive compared to the developing areas of Gachibowli, Miyapur or Kukatpalli. Yet average rates in the western corridor range anywhere between Rs 3,500/- per sq. foot to Rs 5,000/- per sq. foot with the proximity to the CBD making this belt a sought after destination.

5) Experts Expect Attractive Returns

Areas like Hi-Tech City, Gachibowli, and Kondapur have seen rates appreciate from 5% to 10% in the past two years. Experts believe that the current uptick in Hyderabad’s property markets will continue and are predicting at least a 10% appreciation year-on-year (YoY).

Reporter: Stacy Pereira, NDTV
Web Editor: Nikhil Narayan Sivadas, NDTV