Commercial Market Pushes Housing Investment Prospects In Hyderabad
Updated on January 4, 2017
The Union Commerce and Industry ministry has made it clear that is not in favour of extending concessions to US-based iPhone maker Apple for setting up manufacturing unit in India as no other firm has asked for any incentive. The Cupertino-based technology major has asked for several tax and other incentives to enter India in the manufacturing sector.
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There was a time when Hyderabad real estate was sliding down because of policy paralysis and political turmoil. But now, the city is amongst the favourite hubs of multinational companies in India. From IT, IT-enabled services, e-commerce, data centres - all corporate giants are looking forward to grabbing some space in the City of Nizams.
International brands entering Hyderabad realtyEarlier, it was Google which made an official announcement of expanding its Hyderabad operation, followed by Amazon and Apple. Today, several foreign IT companies are leasing or buying office space in the city. Recently, Zensar Technologies leased over 20,000 sq ft office space in Gachibowli, Buzzboard India leased over 30,000 sq ft area in Hitec City, American company Factsheet is all set to lease over 8 lakh sq ft for its largest global office in Gachibowli with the total headcount of 7,000, to be freshly hired. Apart from this, Fargo, IBM and JPMorgan have also finalised high-end office space in the city over the past few months. Madhapur is another area where several pharma companies have their offices and are expanding their footprint in the city. There are several other acquisitions which have not been announced formally by the Telangana government in the same or neighbouring areas of the city.
What makes Hyderabad so desirable?In April 2016, Telangana government came out with ICT Policy for the state which decoded several concessions and subsidies for IT, ITes, analytics, electronics, gaming and animation industry. Adding to this, competitive rentals, quality infrastructure and a proactive government are other reasons that have been attracting global companies to increasingly prefer to set up offices in the city. So far, most prominent areas are in and around are the Financial District, Gachibowli and Nanakramguda. A few more commercial projects are in different construction phases which are speculated to be pre-committed to these corporate giants for leasing purposes. Apart from this, the government is also pushing Karimnaga, Warangal and Nizamabad for inviting companies with attractive incentives.
Commercial boosting residential demandWith the rise in job opportunities, the housing demand is substantially impacted, especially the rental housing. Areas close to Gachibowli, HITEC city have high rental demand for 1, 2BHKs which are available in the varied price range. As per Makaan.com data, over 2,000 properties are available for rent in Hyderabad from prices starting Rs 10,000 for 1 BHK to Rs 55,000 for a 3BHK flat in areas which are close to offices. Investment prospects: if you are considering an investment in Hyderabad city with an intention of earning rental income, here are the few areas where you can consider buying-
GachibowliGachibowli is one of the prime commercial areas for IT companies in the city. There are a number of residential projects which are in different phases of construction. Developers such as L&T Infra, Meenakshi Group, NCC Urban, SMR Holdings, Niharika Projects etc are active in the area. Rental Returns (monthly) : Rs 25,000 onwards for a 2BHK
MadhapurMadhapur is another IT area where there are a number of medium-scale companies. The areas are one of the plushest colonies of the city and have some reputed developers' projects. A few of them are DSR Infrastructures, Vaishnavi Estate, Technopolis, Sravya, Sahiti, Cubix Ventures etc which have their projects in this part of the city. Rental Returns (monthly) : Rs 17,000 onwards for a 2BHK
Hitech cityAs the name suggests, this is another commercial area of Hyderabad, known for IT offices. The residential offering in this area is limited to large size homes, mainly preferred for corporate leasing. Most of the tenants in this area are corporate honchos who prefer to live in luxury homes in a decent neighbourhood. A majority of the population here is a migrant population who are working in nearby offices. Rental Returns (monthly) : Rs 25,000 onwards for an unfurnished 3BHKCheck projects in Hitech city
Property consultants and realtors are of the view that the coming year will be good for Hyderabad commercial realty due to favourable government policy. However, it would be interesting to watch whether this will give a fillip to the housing demand with the same intensity or will rental income remain the top attraction for investors.