Jeyya Siby Stephen, who relocated to hyderabad in august for business, has been jumping between residences. She said, "Every time either the landlord raises the rent (with various justifications like rising power rates) or just asks me to go so they may raise the rent for the next renter. According to local brokers, hyderabad real estate has been booming since 2022, with capital prices of houses rising by 10-15% while rentals have increased by at least 20–30%. Many renters indiaherald talked to claimed that when the landlords raised the 2BHK rents from Rs 32,000 to Rs 48,000 in 2023, the majority of them had relocated to co-living places. However, according to real estate analysts, hyderabad real estate has constantly been rising, outperforming Bengaluru, another hot market, since 2019.
Understanding the city's real estate The city's real estate market is mostly driven by the IT industry, which is concentrated in Hyderabad's western corridor in places like HITECH City, Kundapur, and Gachibowli. The south, which is closest to the airport, has also slowly begun to see growth.
The eastern section of the city, where neighbourhoods like secunderabad and ramoji film city are located, is primarily made up of office buildings and reasonably priced housing. Samson Arthur, senior branch director, hyderabad, at property consultant Knight Frank India, added that the area has a thriving data centre and warehouse sector due to the large land banks that are accessible in the north.
The rent for a 2BHK in a desirable location along the western IT corridor is between Rs 20,000 and 25,000 for unfurnished units and between Rs 30,000 and 35,000 for furnished units, according to GV Jagdish, senior realtor at Hanu reddy Realty. Apartment capital costs typically range from Rs 10,000 to Rs 15,000 per square foot, with upscale apartments costing much more. "Last year the rent for a furnished 3BHK was Rs 25,000-30,000 and now it has jumped to more than Rs 40,000," he continued.
The growth in the city's real estate sector Data from the real estate consultancy firm ANAROCK shows that average rents in significant micromarkets would increase by up to 20% between 2019 and 2023. From Rs 23,000 per month in 2019 to about Rs 27,500 per month in 2023, the average rent in HITECH City increased. In Gachibowli, rentals have also gone up, from Rs 22,000 in 2019 to around Rs 26,500 in 2023. This is likewise an increase of 20%. Additionally, we observed a 19 percent increase in rental prices in Kondapur, according to ashish Sharma, city head for Bengaluru at ANAROCK Group, who is also in charge of the hyderabad market.
Is hyderabad real estate going the Bengaluru way? Experts in the field of real estate note that since 2019, homes in hyderabad have been more expensive than those in Bengaluru. According to ANAROCK statistics, HITECH City had higher average monthly rent in 2019 at Rs 23,000, compared to sarjapur Road in Bengaluru, where it was roughly Rs 21,000 per month. In the same year, Whitefield in Bengaluru and Gachibowli in hyderabad both had average monthly rents of around Rs 19,000 and Rs 22,000, respectively.
Both markets have seen considerable growth since the outbreak. In contrast to hyderabad, Bengaluru's increase is notable, mostly because of the local demography. Geographically speaking, Hyderabad's IT clusters (Gachibowli, HITECH City, etc.) are all grouped together in one location (towards the west), which has led to a persistently high demand for rents in these areas.
On the other hand, Bengaluru's IT industry is dispersed over the city's north, south, and east zones, which relieves strain on the leasing possibilities. However, after Covid, when more offices opened, the supply was constrained in several regions, pushing up rents in Bengaluru while supply remained adequate in hyderabad, slowing the rate of increase.
In terms of yearly real estate growth, figures indicate that Bengaluru is almost caught up with Hyderabad. In Bengaluru, 30,710 units were sold in H1 2023, a 23 percent increase from H1 2022. Housing sales in hyderabad, meanwhile, increased annually by 14%, from 24,330 units in H1 2022 to 27,845 units in H1 2023.
"Today, profits on land assets may quadruple in five years in places like the western corridor. Additionally, the hyderabad rental market is still developing and is not far behind," Arthur continued.
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