Hyderabad has now secured its place as among India’s most expensive cities for real estate. This drastic shift in the city's real estate dynamics raises concerns and redefines its reputation as an investment and talent hub.
A key factor that set Hyderabad apart from other major Indian metropolises was its affordability. This affordability attracted talent, businesses, and investors, contributing to its rapid growth. However, the city's new found status as an expensive urban center is gradually eroding this competitive edge.
The affordability factor was pivotal in making Hyderabad a magnet for IT companies, startups, and educational institutions. As the cost of living rises, this unique selling point could lose its charm, making it more challenging for the city to attract top talent and investment.
Real estate brokers are playing a significant role in shaping perceptions and driving demand. By skillfully leveraging the fear of missing out (FOMO), they create an urgency for buyers to enter the market. Hyderabad's real estate trends may be influenced by this phenomenon, causing prices to soar and leaving many questioning the sustainability of such growth. Also, significant investments come from Telugu NRIs, especially those hailing from the Coastal Andhra region. The abrupt change in Andhra Pradesh's capital from Amaravati to Visakhapatnam has led to an influx of individuals and businesses into Hyderabad, further influencing the city's real estate landscape.
The future of Hyderabad's real estate market remains uncertain. Without strong fundamental reasons to support the meteoric rise in land prices, there's a risk of reaching a point where there are insufficient buyers for resale transactions. Yadargigutta, a locality situated just 70 kilometers from Hyderabad, already serves as a cautionary tale. Many investors in that region find themselves with locked-in investments, unable to sell their land when needed. This poses challenges for both investors and the real estate market as a whole.
Also, the change in government in Andhra Pradesh could reverse the investment pattern back to Andhra region. For potential investors, waiting for a correction in real estate prices may be a prudent choice, especially given the risk of their hard-earned money flowing into the black market due to tax evasion practices.
