Real Estate is widely classified into Residential and Commercial Real Estate. But, there is another property – Industrial Property that is often considered the sub-classification of commercial properties. Industrial properties are used for industrial purposes specifically, unlike commercial properties that can be used for any business purposes. The industrial properties bring high returns but require you to pour in equivalent capital. The leasing periods are often long that generally extend into a few years, reducing the potential vacancy losses.
With the advantages that make the industrial properties stand atop in investment opportunities, investors might want to bag one such property. Here are industrial property investment options from which you can choose one.
Industrial Investment opportunities in Hyderabad
Hyderabad is the distribution hub of the state. The contactless business’s emphasis forced the surge in the e-commerce business, which raised the demand for storage space, i.e., warehouses. The demand for warehouses has grown at a whopping 41% CAGR in the last three years, and the leasing activity increased to 3.4mn sq. ft in 2020. This exhibits the potential of the Hyderabad warehousing market.
The warehouses are high capital investments and earn returns proportionately. The investment runs into Crores of Rupees due to the infrastructure and the huge space requirement for the warehousing properties. The investors with small ticket sizes had limited access to these assets due to these assets’ high capital. But, the fractional ownership concept has stretched the accessibility to the investors with small ticket sizes. You can now own a share of these huge properties and enjoy the returns flowing into your account.
Investing in Industrial land brings in returns that are generally higher than commercial property and residential property. The ROI of these assets ranges from 7 to 10% year on year. The industrial land can be sold to the manufacturing companies that establish their units in these spaces.
Recently, the Techno paints company announced its plan to establish a manufacturing unit near Hyderabad with Rs.25 Crore’s investment. Such huge investment opportunities can be encashed by owning these pieces of land.
The investment in Industrial land for sale in Hyderabad starts from a few crores and extends into few crores. With the best infrastructure, supportive government initiatives, and connectivity to the prime markets, Hyderabad has the scope for huge industrial investments. Hence, investing in these assets is not going to let you down anytime soon.
Factory units are another type of industrial property investment. These properties present you with higher profits opportunities and involve the associated risks like non-performing units under the falling market conditions. If you are sceptical about the risks, you can try your hands on industrial land or warehouses.
You can invest in the properties that are for sale through online platforms that list out properties. The price bracket ranges from few crores to tens of crores. You can invest through partnership to reduce the initial capital flowing from your hand and earn lucrative returns.
After getting to know the industrial investment opportunities, the next concern would be where to invest. So, here are some best places for industrial property places in Hyderabad.
Best Industrial Property places to invest in Hyderabad
Cherlapally is located in the eastern zone of Hyderabad and holds huge industrial land space available for real estate transactions. The Indian Railways has recently decided to develop the Cherlapally Railway station as a satellite railway station to boost the twin cities Hyderabad and Secunderabad’s twin cities. This enhances the connectivity to the prime markets of the city. This escalation in infrastructure elevates the properties’ worth. The area has long been the place for industrial investment.
Balanagar is one of the prominent industrial areas with establishments like Hindustan Aeronautics Limited, established in 1964. The site today holds almost 434 small and tiny industries. Balanagar is a township of industrial estates and is located in the western zone of Hyderabad. This area is optimally located at a mere 10 km from the Secunderabad Railway station and 35 km from the International Airport. This ensures robust connectivity to the markets. The industrial land for sale in Balanagar is priced at Rs.12,000 per sq. ft. There are multiple investment opportunities for the investors to grab and earn lucrative returns.
The logistics park at Bongulur was launched, which spans 1.2 Lakh sq. ft. for warehousing space, co-working spaces, and truck parking space. This area holds Hyderabad’s first logistics park. The logistic park provides high-end amenities and infrastructure. This stands as a major attraction for industrial investment around the area building scope for industrial properties development.
Patancheru is located in the north-western region of Hyderabad and is known for the Patancheru Industrial Area, which is located 32 km from the city centre. This area holds TSIIC Industrial Parks. The site is occupied with giant industries like Agarwal Rubber limited, Asian Paints, Aurobindo Pharma, and many more. The industrial corridor in Patancheru enhances the property value, i.e., the capital appreciation brings in good returns over a period of time. This region holds the example of successful industrial investments. There are various industrial lands for sale in Patancheru that have the potential to take your investment to higher strata.
Industrial property investment is one of the profitable investments owing to the high returns that it brings in. There are various properties that are categorized as industrial properties. Industrial land, factory units, and warehouses are some of them. There are multiple benefits of investing in industrial real Estates like high returns, lengthy leasing agreements, and many more.
Hyderabad holds renowned companies’ establishments that exemplify the city’s potential. Areas like Bongulur, Cherlapally have investment opportunities that allow investors to earn profitable returns.
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Industrial Investment Opportunities in Hyderabad FAQ's:
Industrial property is a property used for industrial purposes like Industrial land, factory units, warehouses, and distribution buildings.
Industrial property is a good investment. Investing in industrial real Estate brings in high returns as the industrial properties are high-performing assets. Also, the leasing agreements’ locking period runs into a few years, which reduces the risk of vacancies, thereby increasing the chances of earning more.
Hyderabad has big establishments running profitably like Asian Paints, Aurobindo Pharma, and many more. The best places to invest in industrial property in Hyderabad are Cherlapally, Patancheru, Bongulur, and Balanagar.
Industrial Real Estate is a type of commercial real estate but for specific purposes. The commercial properties are used for any business purposes like data centres, office spaces, and retail or showrooms. The industrial assets are used for industrial purposes like factory units for manufacturing, industrial lands, and warehouses for storage.
Yes. The industrial lands are enormous and are located at prime locations closer to the markets. Also, the price of industrial properties is way higher than residential properties. The amenities provided for the industrial properties are high-end compared to the requirements of residential properties, which justifies each property’s worth.