Hyderabad's Old City Transformed by Rising Demand for Flats

Rising land prices and growing demand for affordable housing are driving a surge in apartment construction across Hyderabad’s Old City, with high-rises replacing independent homes and offering steady rental returns for investors and middle-class buyers.

In the last few years, while the real estate activity paused elsewhere in the city, the southern areas, particularly the older parts of the city, have seen a significant rise in tall concrete structures. Areas alongside the inner ring road, such as Attapur, Rajendranagar, Chintalmet, Aramgarh, Bandlaguda, and Chandrayangutta, have many big apartment buildings. A 2BHK flat of 1,000 to 1,200 sqft in these areas typically demands a price of Rs 50 lakh to Rs 60 lakh.

In localities such as Falaknuma, Shah Ali Banda, Hafiz Babanagar, Khilwat, Bahadurpura, Edi Bazaar, Moghalpura, Hussainialam, the prices of flats are a bit less due to congested roads and chaotic layouts. However, in the core city areas of Bazaar Guard, Aghapura, Mallepally, Asifnagar, Malakpet, the prices are on par with the properties in prime areas such as Mehdipatnam and Masab Tank. A 2 BHK on 1,200 sqft in these areas is available for a price between Rs 60 lakh and Rs 70 lakh, according to Mohd Aslam, a real estate developer.

If you are renting out a 2 BHK flat, a monthly rent between Rs 13,000 to Rs 15,000 is guaranteed in areas like Moghalpura, Chandrayangutta, and Falaknuma, while the rent is a bit higher in Asifnagar and Mallepally. A 3 BHK flat ensures a rent of around Rs 18,000 to Rs 22,000 in the Old City, excluding maintenance charges and power bills, informed Mohd Riyaz, who runs a rental agency.

One of the main reasons for people to prefer flats over independent houses is the rise in land values. A square yard of land at least a kilometre away from the inner ring road commands a price between Rs 1 lakh to Rs 1.20 lakh. The land rates are slightly lower in the interior areas, said Mohd Rafathullah of MK Associates. Not all families can afford to build an independent house, so many are buying flats. Some NRIs are also investing in properties, added Nizam Khan, another builder.

The transformation of Hyderabad’s Old City skyline is a testament to the changing real estate landscape, driven by the increasing demand for affordable and convenient living spaces.