Rising HNI numbers fueling luxury realty growth in Hyd
Sales of luxury units have clearly played a major role in the growth of the real estate market in Hyderabad, says M Nanda Kishore, MD of Ramky Estates
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Hyderabad Hyderabad is now home to a rising number of high net-worth individuals who are driving the growth of luxury realty market as they look for premium homes, said M Nanda Kishore, Managing Director of Ramky Estates.
"The sales of luxury units have clearly played a major role in the growth of the real estate market in Hyderabad. In the first quarter (January-March) of 2023, luxury units accounted for 25 per cent of all sales, up from 20 per cent in the same period last year. This is likely due to the fact that the city has a growing number of high-net-worth individuals who are looking for premium homes," he said. Post-pandemic, the average size of units in Hyderabad has gone up as well, by at least 10 per cent. This is likely due to the fact that people are looking for more space, to factor in the work-from-home culture, he added.
Promising future
Recently, the growth in real estate sales in Hyderabad has delighted observers, as it signified a positive outlook for the city's economy and its future as a prominent investment destination.
According to a recent report by real estate consultant Anarock Research, the Hyderabad's real estate sector boomed in FY23 and registered 50 per cent growth compared to FY22. Speaking on the topic, Nanda Kishore, a Hyderabad-based real estate developer, shed light on this milestone’s significance for the industry and the city.
Sales volume,
sale prices up
The growth in sales value in Hyderabad real estate market can be attributed to both sales quantity and prices. As per a latest report by another property consultancy Knight Frank India, the sales volumes of residential units in Hyderabad grew by 19 per cent in the first quarter (January-March) of 2023, while the average price per square foot increased by 5 per cent.
Consistent growth
since 2018
"I have observed that from 2018, as the headwinds have been on a consistent rise, Hyderabad has indeed emerged as a highly lucrative opportunity for property and business investment. This trend can be attributed to a multitude of factors, each contributing to the city's thriving investment landscape,” observed Kishore.
According to him, Hyderabad boastsof a robust and resilient economy that has been steadily growing over the years. The city is home to a diverse range of industries, including information technology, pharmaceuticals, biotechnology, and manufacturing, which have been pivotal in driving its economic growth.
"Situated in the southern region of India, the city enjoys excellent connectivity through air, rail,and road networks, making it easily accessible from major domestic and international destinations. Its proximity to major ports and airports facilitates efficient trade and commerce, providing businesses with a competitive edge," he noted.
Hyderabad has witnessed substantial improvements in its physical infrastructure, with the development of world-class IT parks, commercial complexes, and residential townships. The presence of state-of-the-art amenities, modern transportation systems, and a well-planned urban landscape enhances the overall quality of life and makes Hyderabad an appealing destination for both individuals and businesses.
The BRS government in Telangana has implemented favourable policies and initiatives to promote investment in Hyderabad. These include tax incentives, ease of doing business measures, and streamlined bureaucratic processes, all of which created a conducive environment for entrepreneurs and investors. The city has therefore witnessed a surge in the development of residential and commercial properties, offering a wide range of investment options, he said.
He also pointed out about rural prosperity in Telangana. "Agricultural growth has yielded surpluses that are being channelized into investments in Hyderabad real estate. Anyone who has the resources in Telangana, wants to own a piece of real estate in Hyderabad, their crowning glory," he said
Safe Haven for capital
Kishore said there seems to be a flow of capital from other asset classes to real estate. More insights on this trend are sure to further establish real estate’s credibility as a safe and secure investment.
Overall, Hyderabad's real estate market is in a robust position now. The city is experiencing substantial economic growth and witnessing increasing demands for residential and commercial properties. The State government's commitment to infrastructure development is enhancing the city's appeal to businesses and investors. It is anticipated that this growth trajectory will continue in the upcoming years, with Ramky Estates playing its part in driving this progress, Kishore said.
