Hyderabad, the capital city of Andhra Pradesh, is also known as the city of Pearls. It offers not only enhanced lifestyle but also offers better electricity and water provisions as compared to other metropolitan cities like Delhi and Mumbai. The government of Andhra Pradesh has taken numerous steps to improve the standard of living, water and electricity facilities of Hyderabad. Also, the city has housed major IT/ITES companies; therefore, the city always boasts of high residential and commercial demand.

After the global economic slowdown, the city has gone through major transformations. The Hyderabad property market is stable and property prices are not as high as other cities in India. Because of the slowdown, many builders and developers have come up with affordable housing and some builders held their current projects. But in the past few months, the realty market of Hyderabad has shown signs of recovery. Now, many builders are planning to launch new projects in the city.

Many NRI investors are funding Hyderabad-based builders to get good return on investment. Builders like Maytas Properties have come in collaboration Nimesh Kampani, JM Financial chief, to invest Rs. 600 crore and Hyderabad-based Golden Gate Properties in collaboration with Europe-based Deutsche Bank, will come up with many new projects. In this way, it can be said that Hyderabad real estate will give its major contribution to Indian real estate market in the upcoming years.  

In order to attract more buyers for property in Hyderabad, builders are launching special schemes. Besides that, the concept of affordable housing has also come into being. But this doesn’t mean that people are not looking for luxury or premium apartments. Many local builders like Indu Projects, Janapriya, Prajay, Aditya Constructions, Bharat, Ramky, Nagarjuna, PBEL, Sree Srinivasa, Sri Aditya homes, SMR Holdings have come up with many new projects this year. Some new projects are as follow

Lodha Group is coming up with luxury apartments at Eden Square – Kukatpally,     

named as Lodha Bellezza

DLF has launched affordable housing named Lake District at Kokapet Mantri Group is coming up with residential as well as commercial projects at               

Gachibowli district

Some builders like Manjeera group have launched special schemes to boost sales. They have taken into consideration that if working-class people buy a flat, they have to pay pre-EMI from the time of availing the loan till the flat is delivered and also have to pay rent of existing flat. So, under a special scheme called ANMOL, the EMI depending upon the loan will be totally paid by Manjeera till the time apartment is delivered to the buyer. In this way, the buyer will not have burden himself with Pre-EMI and if he chooses to buy the apartment, he will have to pay margin money only.

Some builders in Hyderabad have major plans for coming financial year, 2010 and will be launching their new projects like Koncept Ambience will be launching premium luxury project at Botanical Gardens in Kondapur, Cybercity Builders and Ashoka Developers will be launching affordable housing near Kukatpally.

Commercial Realty Scenario in Hyderabad

 Even though the real estate sector in Hyderabad has seen tremendous growth it still falls short of the growing demand from corporate sector looking for ready-to-occupy properties. The boom is especially visible among the IT and ITes  where IT professionals are vying to buy an apartment in Hyderabad.

However, it’s the Hyderabad commercial property market which is driving the residential property segment in the city. According to Hyderabad real estate developers; in the next few years, BPOs and call centers, software offices and back offices of financial institutions will occupy the maximum space. Property consultants too expect the upward trend in prices to continue. Land availability will facilitate the creation of corporate office space and even the State Government is helping in freeing up land in different parts of the city and the outskirts.

In Jubilli Hills, central business district (CBD) of Hyderabad, capital prices of plot range from Rs 80,000 to 2 lakh per sq ft. Retail property in CBD is around Rs 3,500- Rs 10,000 per sq ft. Multiplexs are the trendy and upcoming way of commercial activities and they are priced Rs 10,000 per sq ft and above. The rental value in this area is quite high too compared to other commercial localities. It ranges from Rs 30,000-60,000 per month.

Many new commercial projects are on the cards and big national developers are involved in it. Raheja group has acquired 100 acres in Gundla, Pochampalli; Delhi based DLF has acquired 3 million sq ft land for commercial activities; Godrej Properties will be setting up an IT Park on 34 acres of land at Pattancheru; Parsvanath has a mall-cum- multiplex, and a hotel project coming up in the city; Ramkey group is venturing into commercial development in the city.

Investors are keen to invest in Hyderabad properties. The reason being that the city not only provides quality infrastructure for property investment but also has more than 40 SEZs, about 1100 Software IT Parks and campuses, but also an international airport. In addition to this, subsidy in stamp duty and registration charges of property also contributes to the high rise in the value of Real Estate in Hyderabad.

Residential Realty Scenario in Hyderabad

The focus for development of residential property in Hyderabad is fast moving to suburbs where land availability is considerable and hence large scale development is possible. Township projects are coming up in areas like Vattinagulapalli, Gaulidodi, Metchel road, Nanakrakuda and Maniconda.

Small residential property in Hyderabad are initiated by local real estate developers like Ashoka Builders who have announced a 250-unit project recently. This project will be located 15 kms away from the city and each unit will cost around Rs 80 lakh. The Jayabheri group and Aparna too have announced development of independent units costing between Rs 60 lakhs – Rs 1.25 crore with a downpayment of 25 per cent. There are several other local Hyderabad Real Estate Builders who have various residential projects in the pipeline. They are Janapriya Engineers Syndicate, SMR builders, Saket Engineers, Amsri Builders and Sanali Group. Further, Pune-based DS Kulkarni Developers Limited (DSKDL), which is a part of the Rs.1,200-crore DSK group, is also planning to undertake residential projects in Hyderabad. DLF too has a mega residential project in the outskirts of the city.

Hyderabad is also witnessing a mushrooming of high-end premium residential properties and gated communities which promise the best in quality living along with various amenities. Today, the emphasis is more on centralised security, general ambience, shopping and recreational facilities. Better infrastructure with fine detailing and good quality specifications are what the builders are providing. Saket Mithila in Kapra, spread over 11 acres of greenery, is an extension of the Saket Designer Homes Township of 750 houses. Mithila, a gated property, consists of 100 exquisitely designed villas. Saket Pranaam consists of luxury homes exclusively for senior citizens. It is a secured gated community with a condominium of 400 flats spread over 4 acres.

The current residential property market in Hyderabad is very different from what it was some 4-5 years back. All builders are now providing amenities of international standards which was not there previously. The plot size of  independent houses range from 250 sq yards to 650 sq yards while the built-up area ranges from 2,100 sq ft to 5,300 sq ft. Depending on the size and specifications, the price of these properties ranges from Rs 1.7 crore to Rs 3.3 crore.

‘A’ grade real estate developers are constructing integrated houses or villas. One villa covering 300 sq yards with all club facilities costs between Rs 1.5 crore and Rs 1.75 crore and the delivery is within 12 months. What makes this attractive is the percentage of appreciation at the time of possession which is anywhere between 60-100 per cent. Rental values in the residential segment have also increased about 40-60 per cent within the past 12 months. The growing demand and limited supply have shot up the prices for residential properties.