Hyderabad has the dual distinction of being known as the City of Nizams and the City of Pearls. But its glorifying history isn’t the only thing that makes Hyderabad such an exciting city to live and invest in. The city is home to some of the leading multinational companies from around the world, along with startups and entrepreneurs who continue to invest in this city - making it a tech, manufacturing, and commercial hub. No wonder Hyderabad has led to the generation of millions of jobs and migration of thousands of people from nearby cities. Hyderabad is a real estate hotspot for investors. It’s also a city Rohit Reddy, the founder and managing director of Signature Developers, calls his home.
Greater investment push by Telangana: Enabling ease of doing business for FDI and FII
For investors looking for opportunities to put money into real estate, Hyderabad promises many advantages. In many states, real estate investments can be complicated by difficult laws, bureaucracy, and challenges of getting permissions and getting past the red tape.
But the Telangana government is committed to enable ease of doing business and ensure highly responsive administration and management at all levels and for all categories of investors - for business people, founders, entrepreneurs, and women. It also wants to attract more Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in the coming years to make Hyderabad a modern city.
Moreover, the possibilities arising out of increased investments will be greater than the sum of its parts. It will boost sectoral jobs and demand, pushing up demand for a skilled workforce and trained professionals. It will also help the state build capabilities, drive indigenous and home-grown companies in industries we are hugely dependent on, such as technology and infrastructure imports from various high-tech-enabled countries.
Why invest in real estate in Hyderabad?
Being part of real estate, Rohit Reddy understands that only a handful of people step into the real estate management and development space - an opportunity whose value only appreciates with time. Hyderabad is one of the most advanced and ideal destinations to invest your moolah in and nobody knows it better than him. According to Rohit, no time could be more opportune than the present - when the repo rate is stable and home loan rates are not likely to increase in the near future.
Many IT/ITES, bio-pharmaceutical, aviation, aerospace, defense, and manufacturing companies are setting up offices and leasing properties in Hyderabad to accommodate their employees. Others have been established and present in the city for many years. Some of these conglomerates are Boeing, Hyundai, Google, IBM, Amazon, Apple, Microsoft, Tech Mahindra, TCS (Tata Consultancy Services), Maruti Suzuki, and many others. The senior management and employees of all these companies require homes to stay in – which whether purchased or leased, the demand pushes up the prices of residential developments.
The COVID-19 impact: Is it positive or negative for real estate investment?
As per Rohit Reddy, as more population steadily gets inoculated and we move the needle towards universal vaccination against COVID-19 , the world will slowly open to physical offices, travel, and tourism. Travel and hospitality will come back with a vengeance, backed by revenge travel. People will soon be able to travel to Hyderabad’s natural locales as well as its various famous landmarks like Charminar and Golconda Fort.
Additionally, according to a survey by NoBroker, 82% of people are planning to buy a home in 2021. This demand is generated mostly by the millennials, who have after the Coronavirus-led pandemic realized the importance of having living resources. Rohit Reddy is positive about the future of investing in Hyderabad and is planning further investments.
Irrespective of whether you are a first-time buyer or a nuanced investment tycoon, it’s always a prudent measure to weigh your risk profile and finances before deep diving into real estate. And Hyderabad offers a lot to a potential buyer.