Hyderabad: The high ground for reality in India

Best cities 2014: Post-bifurcation, Hyderabad is regaining its place as a big player on the realty scene

When Rajesh Nathani, 25, bought his two bedroom apartment in Hyderabad, price was not the only consideration. For the workforce planning analyst at GE Money, it's the 'priceless conveniences' that matter more. His top-floor home, in a five-storeyed 10-apartment block, is neither a typical high-rise in a packed locality nor an expensive one. At Kompally in north Hyderabad, it is far away from his workplace in west Hyderabad's Madhapur, where most IT firms operate out of impressive buildings.
 

Getting to work can be cumbersome: it takes him 60 minutes to cover 30 km, with roads dug up for Metro Rail construction that will open partially next year. But Nathani utilises that time-in his company provided cab-to catch up with colleagues and make phone calls on his way to work and dozing off on the return journey home. These are not the real benefits though. "My parents can breathe fresher air, go out for a stroll safely and enjoy a secure life, unlike in the high-rise blocks of Cyberabad," says Nathani.

There are other advantages too. While markets and malls are nearby, there are more benefits at home. "You hardly face power cuts except during peak summer. Water is available in abundance," adds Nathani. What's more, the capital costs required to acquire homes are relatively less compared to other metros. "What I bought at Rs.2,000 per sq ft in March 2013 is selling for Rs.2,700 per sq ft now. It costs at least Rs.3,800 per sq ft to buy a similar house in west Hyderabad," says Nathani.

Housing projects in the city thrive on a strong end-user driven market unlike on the investor class in other cities. The projects are defined by the lifestyles of the target segments, focusing on the amenities that are most preferred by them. "After separate statehood was achieved, Hyderabad is gradually regaining its sheen and resurrecting itself as a serious and important player on the national realty scene," says Anand Reddy, executive director, PBEL Property Development (India) Private Limited.

Capital value appreciation in the city, which was the lowest among major metros, is likely to surge with increasing demand for homes.