Rise in rental rates in a few areas in Hyderabad

Hyderabad: The Hyderabad real estate market has experienced an increase in rental rates in certain parts of the city, attributed to their proximity to office hubs. According to Cushman & Wakefield, while rental rates have remained steady throughout the city, specific localities near these office hubs have witnessed an average quarterly increase of six percent. Demand for rental properties from employees working in office hubs, such as Banjara Hills, Madhapur, Kukatpally, and Himayat Nagar, has contributed to a six percent quarter-on-quarter (QoQ) and nine percent year-on-year (YoY) rise in rental rates.

Additionally, there has been a surge in property registrations in Hyderabad. A recent report from Knight Frank India indicates that in September 2023, 6,185 residential properties were registered in the city, with a total value of Rs 3,378 crore.

This marks a substantial 30 percent year-on-year (YoY) increase in the registration of residential properties and a 42 percent YoY increase in the total value of registered properties.

The report also highlights that the majority of property registrations in September were in the price range of Rs 25-50 lakh, constituting 51 percent of all registrations. Of these registrations, Medchal-Malkajgiri accounted for 45 percent, while Rangareddy district saw 41 percent, and Hyderabad contributed 14 percent of the total registrations in the Hyderabad real estate market.

These developments suggest a growing demand for rental properties near office hubs and increased activity in the city’s real estate market, particularly in the mid-range property segment.