Hyderabad's real estate sector is experiencing a remarkable surge, with property prices witnessing significant appreciation in recent years. The city's thriving IT sector, coupled with robust infrastructure development, has spurred this growth. This begs the question: is Hyderabad poised to rival Bengaluru's long-standing dominance in the real estate market?

Rising Prices and Growing Demand

Residential prices in Hyderabad have been steadily climbing, with rentals increasing by at least 30% since 2023, according to local brokers. In some micro-markets, Hyderabad has even surpassed Bengaluru in terms of property price appreciation. For instance, Kokapet, a fast-developing area in Hyderabad, has witnessed an 89% increase in property values in the last five years.

Factors Driving Hyderabad's Real Estate Growth

The growth of the IT sector, concentrated in the western corridor of the city, is a major driving force behind Hyderabad's real estate boom. The availability of affordable housing options, especially in the eastern part of the city, has also contributed to the increased demand.

Bengaluru: A Maturing Market

In contrast, Bengaluru's real estate market, after a period of rapid growth, is showing signs of stabilization. Housing sales in the city dipped in the first quarter of 2024, and rental growth has slowed down. This has led to a shift in demand towards Hyderabad, where buyers are finding more affordable options and greater potential for future appreciation.

Expert Insights

Experts believe that Hyderabad's real estate market has strong growth potential in the coming years, driven by factors such as the recent political clarity regarding the state capital, increased commercial activity, and the city's focus on infrastructure development. However, while Hyderabad is catching up with Bengaluru in terms of growth, it's unlikely to overtake it in the near future, given Bengaluru's established position as a major IT and commercial hub.

Key Takeaways

• Hyderabad's real estate market is experiencing a significant boom, driven by IT sector growth and infrastructure development.

• The city offers a mix of affordable and luxury housing options, catering to a wide range of buyers.

• Bengaluru's market is showing signs of stabilization after a period of rapid growth.

• Experts predict continued growth for Hyderabad's real estate sector, but Bengaluru is likely to maintain its dominant position.

Conclusion

Hyderabad's real estate market is undoubtedly on the rise, offering attractive investment opportunities for buyers. While it may not overtake Bengaluru in the near future, the city's strong fundamentals and growth potential make it a market to watch in the coming years.

-source: moneycontrol.com