Real Estate Investment Options in Hyderabad in 2021

Real estate contributes the lion’s share of the Telangana state’s economy, approximately 65%. The IT hub and the working professionals’ influx has created the demand for prime markets like Hyderabad. Hyderabad, the capital city, has exhibited its strong stance in its market by exhibiting positive trends in challenging times like the Pandemic. While all other major cities of the country were churning during the year 2020, Hyderabad has demonstrated resilience to the falling trends.

The city’s peculiar feature is its affordability with a wide range of price brackets allowing investors to make a suitable choice. With the diverse markets and investment options, the real estate market in Hyderabad has the best to offer its investors. 

Let us delve into each property investment option like commercial and residential sectors and speculate the trends.

Commercial Real Estate in Hyderabad

Commercial Real Estate in Hyderabad has experienced growth despite the lockdown. The office space market has seen a surge recording the second-highest annual supply in the country after Bengaluru. Hyderabad has added 8.7 million square feet which is far greater than the decadal average of 4.6 million sq ft every year.

According to the Knight Frank India Report, the new COVID vaccine drive has shot up the business activities that recorded a 640% increase in office space transactions during the fourth quarter of the year. The office leasing activity was recorded during the second half of the year as the first half was stalled due to the lockdown. The office space area of 8.7 million sq. ft. is split into leasing activity recorded at 3.8 million sq. ft. and the new completions of 4.9 million sq. ft. during the second half of the year. 

The boost in the office space segment is anticipated to be the announcement of the Goldman Sachs entry during the covid. The office space’s rents were stable even during the pandemic, and the office space has increased in size, as mentioned above. 

The year ahead, 2021, seems to be a prospective year for commercial properties like office spaces and datacenters. Owning a commercial property as massive as office space and data centre does not seem affordable to the common man. This necessarily does not close the doors for the small investors. You can invest through fractional ownership and own a part of the high-class asset with investments as low as Rs. 5 Lakhs to Rs.10 Lakhs. You can invest through online investing platforms like Assetmonk and enjoy hassle-free returns as they provide asset management.  

Residential Real Estate in Hyderabad

The residential sector is categorized as the utility and the necessary sector. Moreover, the pandemic has confined the human race to homes, making the argument of having their own home healthy. The easing restrictions during the second half of the year 2020 were supported by the festive demand, which tremendously shot up the sales. This is justified by the massive figures for home sales recorded at 5,260 units in the latter half of 2020. On a quarterly comparison, the fourth quarter sales saw a whopping 127% rise compared to the third quarter of 2020.  

The new launches in the market saw a spectacular growth of 480% Quarter on Quarter, Hyderabad topping the cities’ list of QoQ rise in launches. Also, the unsold inventory of Hyderabad is among the least in the country, which might take two years to offload completely. 

Source: Knight Frank Report

The residential sales in Rs.50 Lakhs’ price range have experienced a growth of 24% in the second half of 2020 which was 15% in the second half of 2019. The buyer preference has always been strong in Rs.50 Lakhs’ price range to Rs.1 Crore. 

Investing in residential properties is always rewarding, owing to capital appreciation and rental income. You can invest in residential properties to earn a steady passive income. The maintenance and repair costs are also reasonable as compared to the commercial properties. The residential properties also provide a hedge against inflation. You can relax and watch the returns flow into your account.

Luxury Houses in Hyderabad

Luxury homes in the outskirts of the city have gained traction during pandemic times. The luxury villas priced between Rs.5 Crores to Rs. 12 Crores were on-demand in the second half of 2020. The areas like Narsingi, Gopanpally, and Gandipet saw a demand surge. The luxury homes situated in the city’s outskirts are experiencing a shoot in demand due to the pressing need for social distancing. 

The investor base for these properties are broadly from the doctors, NRIs as these asset class properties are affordable to high net worth individuals. But through fractional ownership, you can invest with small ticket sizes in these high graded properties and earn lucrative returns.

Co-living Spaces in Hyderabad

The Co-living sector was trending before the pandemic times. The pandemic hit the spaces hard due to the work from home culture. But there are co-living spaces that performed reasonably well. The working professionals from healthcare, pharmaceutical, and media had to work around the pandemic clock. These professionals created a demand for a hygienic place with healthy food to reside in during challenging times.

According to the Co-living space co-founder, this was an opportunity for the co-living spaces, some of which managed to have a high occupancy rate of around 80%. On IT professionals’ return, the co-living spaces would bustle again with their customers occupying their spaces.

You can invest in the co-living spaces as they are not going to let you down anytime soon. IT sector provides the required demand in the aftermath of the pandemic. The investment in co-living spaces is significantly reduced through fractional ownership assets.

Bottom Line

Real estate has been an age-old investment vehicle, and the novel approaches are ensuring that the industry is evolving to make it more accessible and affordable. The investments like commercial, residential, and specialist sectors like co-living are providing investors with myriad investment options. 

Want to purchase a property? Invest through Assetmonk, an online real estate investing platform that offers investment opportunities in properties like commercial real estate, residential and co-living spaces through various products. We list our properties at strategic locations like Bengaluru, Hyderabad, and Chennai. Our investors can avail themselves of the services at strategic locations like Bengaluru, Hyderabad, and Chennai. The properties are highly curated and have expected IRR yields of up to 21%, the best in the prevailing market conditions.