Hyderabad: Why do NRIs prefer Hyderabad over Bangalore and other cities?

Hyderabad: Property investment in Hyderabad is attracting not only buyers from various cities and states within India but also many Non-Resident Indians (NRIs).

NRIs, particularly those planning to settle in India, have been increasingly purchasing properties in Hyderabad. This trend has been observed among NRIs from locations such as Dubai, Singapore, and Hong Kong, who prefer to invest in areas around Shamshabad, Patancheru, Gandimaisamma, and other regions, according to Sanjay Kumar Bansal, Managing Director of DEV Constructions.

In alignment with the NRI interest, many employees and investors from different cities have also been investing in Hyderabad's real estate market. This includes IT professionals and others who seek quality education, transportation, and other factors that make Hyderabad an appealing destination. Businesspeople and individuals from places like Bihar and Ahmedabad have also shown interest in acquiring properties in the city.

Members of CREDAI Hyderabad said this practice of employees and businessmen purchasing flats and other properties in Hyderabad has been steadily growing, with an annual growth rate of three to four percent.

Contrary to concerns of a slowdown in the real estate market, newly elected CREDAI Hyderabad President V Rajashekhar Reddy stated that Hyderabad has registered significant growth, with a 260 percent increase in the luxury housing segment in the last nine months. Hyderabad also recorded the highest number of new office completions and absorptions in the country, with 2.9 million square feet of office space transacted in the third quarter of 2023.

Rajashekhar Reddy hoped to receive continued support from the Telangana government, emphasizing the importance of bolstering Hyderabad's brand image.

Regarding water availability, a builder executing projects in both Hyderabad and Bengaluru pointed out differences between the two cities. In Hyderabad, obtaining a water connection typically takes just two months, while in Bengaluru it can take two to three years. This issue in Karnataka's capital city is primarily due to water scarcity and the Cauvery River water dispute, which has forced builders in Bengaluru to rely on groundwater in many areas. Additionally, the road infrastructure in Bengaluru is described as poor compared to Hyderabad, impacting amenities in real estate projects.

The availability of water and efficient road connectivity has contributed to Hyderabad's attractiveness as a real estate investment destination.