Hyderabad's Real Estate Market: To Buy or Not to Buy?
Rental values in Hyderabad's key micro-markets have increased substantially between 2021 and H1 2024, making it a challenging decision for homebuyers to choose between buying and renting.
Hyderabad Real EstateRental ValuesCapital AppreciationBuying Vs RentingAnarock ResearchReal EstateSep 18, 2024
Notably, areas like Gachibowli and Hitec City saw rental values rise by 50 per cent and 46 per cent, respectively, while capital values appreciated by 70 per cent and 59 per cent. Dr. Prashant Thakur, Regional Director & Head, Research – Anarock Group, said that data analysis of key micro-markets in the top seven cities shows that in cities like Bengaluru, Pune, Kolkata and Chennai, average residential rental values rose more than the capital values between 2021-end to H1 2024.
However, areas in NCR, MMR and Hyderabad saw the reverse trend – capital values appreciated more than the rental values. Such data can be a key parameter – though by no means the only one – used to determine whether it is more advantageous to buy a property or opt for renting.
For example, in Hitec City, the average monthly rent rose from Rs 23,000 in 2021 to Rs 33,500 by mid-2024, while capital values grew from Rs 5,800 to Rs 9,200 per square foot during the same period. Similarly, Gachibowli saw rents jump from Rs 22,000 to Rs 33,000, while capital values skyrocketed from Rs 5,010 to Rs 8,500 per square foot.
The increase in rental values and capital appreciation has made it a challenging decision for homebuyers to choose between buying and renting. While buying a property can provide a sense of ownership and stability, renting can provide flexibility and lower upfront costs.
Anarock is a leading real estate consulting firm that provides research-based advisory services to clients. With a strong presence in India and the Middle East, Anarock has established itself as a trusted partner for real estate investors, developers, and homebuyers.
Information Hyderabad's real estate market has been witnessing a surge in demand in recent years, driven by the city's growing IT industry and infrastructure development. The city has seen a significant increase in property prices and rental values, making it a challenging market for homebuyers.
Frequently Asked Questions
What is the current trend in Hyderabad's real estate market?
Hyderabad's real estate market is witnessing a surge in rental values and capital appreciation, making it a challenging decision for homebuyers to choose between buying and renting.
Which areas in Hyderabad have seen the highest increase in rental values?
Areas like Gachibowli and Hitec City have seen the highest increase in rental values, with a rise of 50 per cent and 46 per cent, respectively.
What is the average monthly rent in Hitec City?
The average monthly rent in Hitec City has risen from Rs 23,000 in 2021 to Rs 33,500 by mid-2024.
What is the capital appreciation in Gachibowli?
The capital values in Gachibowli have skyrocketed from Rs 5,010 to Rs 8,500 per square foot during the same period.
Who is Anarock and what services do they provide?
Anarock is a leading real estate consulting firm that provides research-based advisory services to clients. They have a strong presence in India and the Middle East and are a trusted partner for real estate investors, developers, and homebuyers.
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