Hyderabad: Surging ahead of many other cities, Hyderabad continues to top the charts in the City Momentum Index, office space absorption and commercial rentals. And, in tune with its present performance in different surveys, rental values too are steadily escalating.
There are many factors behind the steady rise in rental values in the domestic sector.
Hyderabad is in the top three positions in any real estate survey, and of late, there is a tremendous boost in commercial activity. All these aspects are fuelling the demand for rental accommodations and subsequently the rental values are also shooting up.
Experts in the industry predict the rental values to increase further in the years to come with more and more people expected to migrate to the city. The rise in rental values in Hyderabad is higher than other metros such as Bengaluru and Mumbai, but experts insist that it is still affordable. Depending on the locality, type of structure and maintenance, the rent for a 2 BHK apartment ranges from Rs 14,000 to Rs 20,000. This excludes the monthly maintenance charges.
“This was on the cards. With many IT and corporate companies making Hyderabad their second home, the demand for rental accommodations was expected to increase,” says K Sridhar Reddy, Telangana Real Estate Developers Association treasurer. The Central government should offer some incentives to homebuyers, especially those purchasing second homes. “By renting out such properties, property owners, in fact, generate tax revenue for the government,” he says.
Though the demand for rental accommodation is higher in the western parts of the city, other areas are not far behind. Rental values in areas such as Bowenpally, Kompally, Attapur, Rajendranagar and others increased considerably. Not to mention the rent in core areas of Narayanguda, Himayathnagar and others. In the eastern parts — Uppal, LB Nagar and neighbouring areas — rents are increasing rapidly.
A few years ago, a 2BHK was available for Rs 8,500 to Rs 9,500 a month. It now is Rs 11,000-Rs 12,500. This surge, according to agents, is being witnessed only since the last couple of years. “Real estate activity is increasing in these higher areas and in tune with it, infrastructure facilities are also being provided. With Metro Rail connectivity, employees working in different companies are zeroing on in these areas,” says Narayana Reddy, a rental accommodation agent. “There is a lot of migration to the city. Many citizens from other cities are settling here and living happily. This is also adding to the demand for more rental accommodation,” he says.