Purchasing a house is the biggest investment for most working individuals in India. People save and invest their hard-earned money to acquire a property. Generations of families tend to live in a given property. As property values rise by the day, purchase of a house is also increasingly seen as a financial investment.
Stories abound in Hyderabad how an investment in real estate has grown rapidly. One such success story is Muppa’s Indraprastha. Property values in the 36-acre villa community have grown 3.6 times over the last nine years. That is an average annual growth rate of 15 percent per year.
The property appreciation coincided with the rise in rental yields in the region. With the development of Osman Nagar, Tellapur and the adjoining areas, rents of premium villas in the region increased from Rs 30,000 in 2017 to Rs 1-3 lakh per month. That is a three-fold rise in rents!
What is behind the rapid growth of property values in Muppa’s Indraprastha? There are numerous reasons. Primary among them are the emergence of Indraprastha as an elite residential community. The community boasts international standard amenities, large parks, green cover, broad roads and top-class infrastructure facilities.
Another reason is the evolution of Osman Nagar, Tellapur as a premium residential hub. New infrastructure such as flyovers and new roads made commuting to Osman Nagar and Tellapur easier. Osman Nagar and Tellapur have easy connectivity to Financial District, Neopolis, ORR, Kokapet, Airport, Nallagandla, Lingampally and Gachibowli. The rapid development of Neopolis and Kokapet has increased demand for Osman Nagar and Tellapur.
Indications are Osman Nagar, Tellapur and premium villa communities in the area will continue to see capital appreciation in the future. Several factors are driving the customer demand in the region. One is the limited availability of villas and new projects. Real estate developers and companies are increasingly preferring to build premium apartments in the region. Land is in limited availability. So, a villa in a premium community such as Indraprastha will continue to see good demand, keeping the prices elevated.
Second is the spillover demand. As prices in the nearby Kokapet and Neopolis rise higher, customers are increasingly preferring to buy home properties in Osman Nagar and Tellapur. Prices in Osman Nagar and Tellapur are comparatively lower than in Kokapet and Neopolis. Also, prices in Kokapet and Neopolis tend to track the growth in Kokapet and Neopolis. With surrounding areas seeing fast development and increasingly more residents calling Osman Nagar and Tellapur their home, prices of good properties in Osman and Tellapur are expected to continue to see decent appreciation in coming years as well.