Hyderabad is a city on the rise. With an impressive GDP growth rate of over 10% per year, it’s no wonder that real estate investors are turning their attention to this bustling metropolis. The city owes its success to a thriving IT sector, which employs over a million people, and a rich educational landscape with over a thousand colleges and universities. The result? A well-educated and skilled population.
Moreover, Hyderabad’s real estate market has witnessed substantial appreciation, with property values increasing at an average rate of 10% annually over the past five years. This trend is further bolstered by the city’s attractive rental yield of 3-4%, ranking among the highest in India. As a testament to its potential, Hyderabad is poised to attract over $10 billion in real estate investments in the next five years.
Reason 1: Early Bird Price Advantage
Real estate usually does well when things seem steady. Buying property before elections might get you better prices because sellers want to make deals before the uncertain political times.
Reason 2: Political Impact on Real Estate
Election outcomes can significantly affect real estate. A ruling party victory ensures continuity in ongoing projects, while an opposition win may cause temporary delays. Investing before elections is advantageous, as prices often rise post-election.
Reason 3: Anticipating Infrastructure Boost
Investing before elections allows you to benefit from promised improvements in infrastructure, transportation, and amenities. Elections often bring commitments of economic growth and enhanced infrastructure, positively impacting the real estate market. New roads, public transport, and utility services can increase property values and neighborhood appeal.
Reason 4: Hyderabad's Real Estate Market – A Magnet for Foreign Investments
Hyderabad’s favorable business environment, government policies, and the presence of tech giants continue to attract international projects. Investing before elections not only positions you for potential gains but also reinforces confidence in foreign enterprises, further enhancing the market’s appeal.
Let’s Look into the past 3 terms election results and see the growth of Real Estate 2009 Elections:
The Telugu Desam Party (TDP) won the 2009 assembly elections in Andhra Pradesh, with a majority of 102 seats.
- The real estate market in Hyderabad boomed in the lead-up to the elections, with property prices rising by an average of 20-25%.
- This was due to a number of factors, including the strong economic growth in India at the time, the increasing demand for housing from the growing middle class, and the government’s infrastructure development projects in Hyderabad.
- However, the real estate market cooled off after the elections, as demand from investors tapered off.
- The Telangana Rashtra Samithi (TRS) won the 2014 assembly elections in Telangana, with a majority of 63 seats.
- The real estate market in Hyderabad remained sluggish in the lead-up to the elections, as investors were apprehensive about the political uncertainty.
- However, the market picked up after the elections, as the new TRS government announced a number of pro-business policies, including tax breaks for developers and infrastructure development projects.
- Property prices in Hyderabad rose by an average of 10-15% in the year following the elections.
2018 Elections Results
- The TRS won the 2018 assembly elections in Telangana, with a majority of 88 seats.
- The real estate market in Hyderabad remained strong in the lead-up to the elections, with property prices rising by an average of 15-20%.
- This was due to a number of factors, including the strong economic growth in India, the low interest rates, and the government’s infrastructure development projects in Hyderabad.
- The market continued to grow after the elections, with property prices rising by an average of 10-15% in the year following the elections.
Reason 5: Portfolio Diversification
Adding real estate to your investment portfolio offers value. Hyderabad offers diverse investment opportunities in commercial, residential, and industrial real estate. You can leverage the city’s growth in various ways.
Reason 6: Market Research and Due Diligence
Before investing in real estate, research local property demand, rental yields, and potential appreciation. Understanding these factors will help you make informed decisions that aren’t swayed by election-related noise.
Confused About the decision? Get Professional Advice!
If you’re uncertain about the election’s impact on your real estate investments. Get in touch with us. We provide you with free consultation to provide you with the best solution.