Real estate investments in Hyderabad on the rise

The city accounted for almost a third of the overall residential launches in the first half of 2021, emerging as one of the best residential markets.

Real estate investments in Hyderabad on the rise

Investments in real estate asset classes continue to grow in Hyderabad. Real estate growth in the city during the first six months of 2021 has been well above the national average, with reports suggesting large deals worth Rs. 3,500 to Rs. 4,000 crores. Segments such as warehousing and residential are showing signs of growth along with office spaces.

Institutional investments in the city during the first quarter of 2021 account for 42% of total investments, with the highest flows amounting to USD 384 million, due to the launch of new developments by Phoenix Group.

In the second quarter of 2021, RMZ Corp, a real estate firm, partnered with Canada Pension Plan Investment Board to develop two office complexes in the city- RMZ Spire and RMZ Nexity, along with another office complex in Chennai, namely, RMZ One Paramount.

Dr Samantak Das, Chief Economist, Research & Reis, JLL India, said, “This single large deal worth Rs. 1,500 cores account for 15% of the real estate investments across the country during Q2 2021.

Residential Market

In the first half of 2021, Hyderabad witnessed a sale of 6,866 residential units, up 62% from 2020, making the city the highest growth among the top seven cities in India. The residential unit demand was driven by western suburbs, contributing 67%.

The city accounted for almost a third of the overall launches, with 19,751 units out of 61,010 units, as per JLL research.

JLL India signed a deal with IRA Realty Tech, a Hyderabad-based developer company, for 53 acres of land in Shamshabad, for residential projects. Valuation to the tune of Rs. 1,000 crores are expected off this land parcel.

Investor Outlook

Commenting on investor sentiment, Radha Dhir, CEO & Country Head, JLL India, said, “Relaxing lockdowns during the Q1 2021 gave investors an experience of a world post-Covid, leading to risk re-rating. Asset allocations thereby witnessed a change in Q2 2021.”

Mani Rangarajan, Group COO, PropTiger.com, said, “Hyderabad is emerging as one of the best residential markets, providing good quality of living. Therefore, demand is set to grow. It is bound to remain a preferred market for investors.

In FY 2021, the city registered warehousing transactions of 2.4 million sq. ft., with 54% investments driven by e-commerce.

Source: Telangana Today