Whilst the property market in India has struggled over the last few years, the one exception is Hyderabad.
Now the capital of the Telangana district of India, Hyderabad has been bucking the trend of the seven major cities in India over the past five years with a property boom.
In Delhi, Mumbai, Bengaluru, Pune, Chennai and Kolkata, sales have dropped sharply since 2013-14. Among the seven cities, Delhi-NCR saw the biggest drop in sales at 67 per cent, while Bengaluru saw the smallest drop at 21 per cent.
Hyderabad in contrast has seen property sales rise by 32 per cent over the same period, making it the only major Indian city to give a good return on investment for overseas property investors.
The major reason for the Hyderabad property boom is the political stability it gained in 2014 when it was separated from Andhra Pradesh after a long period of instability and uncertainty. Another reason is the government’s focus on development of infrastructure.
Proactive government policy and infrastructural developments such as the Hyderabad Metro Rail, strategic road development and elevated corridors has boosted the residential property market in the city.
Even the demonetisation in India that reduced property sales nationwide failed to have an impact on Telangana capital, where property sales continued to rise including an increase in residential launches.
The end of political uncertainty and the state government’s focus on infrastructure have combined to unleash the Hyderabad property market.
As the city stands out from all the other Indian cities for property market growth, it is expected to further draw the attention of investors seeing it as a safe haven in the Indian property market.
Overseas property investors interested in Indian real estate should do their homework to ensure that they join the property boom of Hyderabad, rather than the relative bust of other major Indian cities.