Forecasting of 3rd & 4th Quarter of FY 2020-21 Hyderabad's Real Estate Market by Bharat Nirman Limited
This has been the most talked about topic among builders, developers, investors and property buyers. Well, according to the Post-Covid situation, the housing sector has shifted to the end-user sector from the investor sector. Around 5 to 7 years ago in other metropolitan cities like Delhi and Mumbai, the Investor:End-user ratio was 60:40. However, with the demand in real estate sector falling and the developers defaulting, most investors have ceased to consider real estate as an asset investment class and moved out. Investor participation in the overall demand has fallen to as low as 5% to 10%. Buyers these days are unwilling to take any risk and they prefer ready-to-move-in projects. Considering the market conditions, it has been estimated that this trend for preferring ready-to-move-in projects is going to dominate the demand up-to the next few years despite the improvement in the economic outlook.
However, in the midst of a rise in the commercial real estate segment in India, Hyderabad needs a special mention. With many companies shifting their base to Hyderabad, the city is growing as an affordable alternative for state-of-the-art office spaces; it’s almost become an Investments Gateway of India. As per the reports, in FY 2019-20, Hyderabad is equal to Bangalore in terms of office transactions. But it can be safely estimated that with the pro-active state government and appropriate infrastructure, Hyderabad’s commercial growth will continue going forward after Covid-Unlock.
Marked by the Govt. of Telangana’s initiative of ‘LOOK EAST’ policy to expand Hyderabad toward eastern side of the city, areas like Nagarjuna Sagar Highway, Vijayawada Highway, LB Nagar, Nagole, Uppal, Keesara, Ghatkesar, Bhuvanagiri, Yadgirigutta, Warangal Highway and the surrounding localities are gaining momentum in real estate development. Until now, due to the fast-paced IT expansion in the western part of the city, those areas have seen major development, but the eastern parts of Hyderabad have remained neglected. But this move will help in the development of areas located in the eastern side of the city. There are some prominent IT companies like Infosys and Raheja with their campuses in Pocharam and Genpact located in Uppal, this area has proper mode of commute through metro connectivity from Nagole to Hitech City and proximity to the Outer Ring Road (ORR). The eastern side therefore becomes the next best alternative in the city for development and for real estate investments before the area spurts into development and the prices of property escalate.
In the Post-Covid scenario areas located in the outskirts of Hyderabad like Vijayawada Highway, Sagar Highway, Srisailam Highway, Bangalore Highway, Vikarabad Highway, Shankarpally Highway, Mumbai Highway, Narsapur Highway, Nagpur Highway, Karimnagar Highway, and Warangal Highway’s are some of the best places for investment options in open plots. There are multiple gated community open plot ventures coming up in these areas by reputed developers like Bharat Nirman Limited at affordable rates. As these areas are still under developing stage with many proposed SEZ’s and Industrial Clusters, prices are estimated to rise in 3rd and 4th quarter of FY 2020-21 and after. Purchasing open plots in these areas now will promise high returns on investment in short span.
The Hyderabad real estate market has been a real game-changer in the overall Indian real estate market. While the rest of the country experienced a recession in the real estate market, the real estate sales in Hyderabad were touching the sky especially in open plots segment. Though there had been a complete slowdown in the 1st and 2nd quarter of FY 2020-21 due to Covid Pandemic, the Hyderabad real estate market is expected to pick up rapidly in 2nd half of FY 2020-21.
IS IT SAFE TO INVEST IN OPEN PLOT VENTURES IN HYDERABAD IN 2ND HALF OF FY 2020-21?
Undoubtedly YES, in the post-covid scenario it can be considered absolutely safe to invest in open plot ventures in Hyderabad. Multiple open plot ventures are being developed by reputed developers like #BharatNirman Limited towards the outskirts of the city in places as mentioned above, those are the preferred locations for open plot investments.