Old City property owners turn to rental income as demand, rents rise

Rising rents and sustained housing demand are encouraging property owners in Hyderabad’s Old City to add floors or redevelop ancestral properties. Rental agents say location, connectivity, schools, hospitals, markets, security and parking are driving demand and supporting higher rental values.

HYDERABAD: Property owners in the Old City are increasingly eyeing rental income as a secure, dependable source of regular earnings, with many adding floors to existing buildings or handing over ancestral properties to builders to construct apartments.

Rising rents and sustained demand for housing are making such properties a lucrative source of monthly income.

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In prime localities including Charminar, Devan Devdi, Shahalibanda, Khilwat, Moghalpura, Darulshifa, Etebar Chowk and Gulzar Houz, a 2BHK now fetches around Rs 18,000 a month, while a 3BHK commands about Rs 23,000.

In Falaknuma, Aliabad, Jahanuma, Roop Lal Bazaar, Chatrinaka, Lal Darwaza, Bahadurpura and Shastripuram, rents are around Rs 15,000 for a 2BHK and Rs 18,000 or more for a 3BHK flat or portion.

Rental agents said apartments command significantly higher rents than portions in duplexes or three-storeyed buildings, owing to facilities such as security, parking and maintenance.

Location is another major factor, with metro rail connectivity, road access, markets and educational institutions influencing rental values.

“Buildings close to reputed schools in the Old City attract higher rents as families prefer easy access to educational institutions. Connectivity to public transport and markets also plays a major role,” said Mohd Taher, who runs a rental agency.

Ghyasuddin, a rental agency operator from Moghalpura, said redevelopment was benefiting owners of large ancestral properties. “Many owners are adding floors or partnering with builders so that an old property generates income from several residential units. It gives them regular returns while retaining an asset that has appreciated over time,” he said.

Mohd Shukoor of Vijaynagar Colony said rents in his locality were comparable to several Old City areas. “Tenants are willing to pay more for houses close to schools, hospitals, markets and transport facilities. Good location has become the biggest factor in rental demand,” he said.

The trend has spread to the Old City’s expanding residential belt, including Attapur Road, Hyderguda, Dairy Farm Road, Chintalmet Road and Aramgarh, where several apartment buildings have come up.

Improved connectivity with the core city and access to schools, hospitals and markets have pushed up rents. Rental values in these areas are increasingly competing with those in Malakpet, Chanchalguda, Mallepally, Aghapura, Asifnagar, Mehdipatnam and Tolichowki.

For property owners, rising rents and redevelopment are turning residential assets into a steady income-generating investment.