The Hyderabad Rental Watch

The Information Technology boom has reshaped the property landscape of Hyderabad to a great extent, especially in the residential realty segment. The following post provides an insight into the rental markets of three major Hyderabad neighbourhoods. Read on to know more.

The HussainSagar Lake at Night

Hyderabad is one of the major real estate destinations in south India. The city’s property market has witnessed a great boom in the last ten years. Though the economic slump of 2008 had an adversarial effect on the property market, however it has revamped considerably since 2011. The residential rental prices have gone up by at least 10% across major neighbourhoods. The Hyderabad rental market is currently home to some of the best rental properties. Neighbourhoods like Kondapur, Madhapur and Gachbowli have performed extremely well in 2012–13 with as much as 13% rise. The following post analyses Hyderabad’s rental market based on a recent report published by the leading property portal 99acres.com.

The recent proliferation of the IT industry has redefined the city’s economy to a greater extent and today property market of Hyderabad has multifarious options available to it end users. Interestingly, after the foraying of the IT, Hyderabad came up in a big way in the larger property market of the city. We will examine three neighbourhoods that have come up in a big way within the Hyderabad rental market in the recent past.

Gachibowli—

Located in SerilingampallyMandal at the Rangareddy district, Gachibowli has come up in a big way in the realty souk of Hyderabad. Though the locality is a new entrant within the magnanimous IT hub of the city, it already has a host of MNCs under its name. List of MNCs include brands like Capgemini, Polaris, Bank of America and Union Bank of Switzerland. The presence of such MNCs has boosted the commercial property market of the area which in turn has turned out to be good bet for investors and builders. Moreover, the rental market of Gachibowli has noticed an upsurge in the last five to seven years. Gachibowli’s strategic location has been responsible for its rapid development as a property hub.

Madhapur—

When it comes to the IT hub of Hyderabad, Madhapur does take away all the laurels. The famous HITEC City of Hyderabad is referred to as the heart of this region. The locality has been transformed into an IT hub from a small rocky dwelling of the early 1990s. Today the area has the highest concentration of IT/ITEs organizations within Hyderabad with names like Google, Amazon.com, Dell and others.

Just like Gachibowli, the realty market of the area is home to some top-notch builders. The residential market has the maximum concentration of rental properties in Hyderabad. From luxury homes to serviced apartments and even budget homes for single professionals – the rental souk of Madhapur is full of options.

Kondapur—

Nestled a little beyond the fringes of Madhapur, the neighbourhood of Kondapur has become a hotspot for real estate activities in the last five years. One of the major reasons for rapid development of the area is its vicinity to the HITEC City. Currently, one of the favourable destinations for the real estate builders, the property landscape of the region is changing rapidly. Surrounded by Gachibowli, Madhapur and Miyapur, the residential property market of Kondapur has been scaling greater heights. The locality has currently become a favourite place for the IT professionals who prefer a serene location yet not far away from the HITEC City.

If we analyse the rental markets of these three localities, we will find that the markets have recorded a considerable growth in the rental values. While the overall rental market of Hyderabad recorded a growth of 10 percent in the last year and a half, areas like Kondapur, Gachibowli and Madhapur has recorded nearly 13% rise in the rental values. For example, if a 3BHK apartment in Kondapur came at a cost of INR 19000 (last quarter of 2012), the same property today is available at a cost INR 21500 (second quarter of 2013).

Gachibowli has a similar story to narrate; especially for the year 2013. There has been a whopping rise of 13% in the rental property prices. If the rental prices stayed constant at an INR 23000 in the first quarter for a 3BHK apartment, the same property was available at an increased cost of INR 26000; recording a 13% increase.

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Fig. 1 Graph showing the variations in rental prices of the three localities

?The economical and the social dynamics operating within a country influence the property market to a great extent. The information provided in the above post is an example of the same. Hyderabad’s booming property market has a great scope for investment returns in the coming future.

Author Bio: Sampurna Majumder writes on behalf of 99acres.com, which is an online portal dedicated to meet every aspect of the consumers’ needs in the real estate industry. It covers information about all Real Estate property types including Houses for rent for different Property locations across Hyderabad.

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