Hyderabad: Many tenants in Hyderabad are considering the option of buying properties as the real estate sector in the city is experiencing a surge in rental rates. Most landlords in areas near workplaces have significantly hiked rents.
According to a report by NoBroker, Hyderabad residents are exhibiting increased rental budgets due to rising rents, shifting living preferences, and economic recovery. In the city, 65 percent of the tenants have seen an increase in their rental budgets.
Surge in rental real estate in Hyderabad
As per the report, many tenants in Hyderabad are considering the option of purchasing properties as monthly rentals have surged and come close to home loan EMIs.
Around 63 percent of Hyderabad tenants think it is wiser to buy properties as the real estate sector is expected to witness higher growth in the future.
The report highlighted that 43 percent of landlords in Hyderabad have reported a rental yield of 2-3 percent from their properties, whereas 17 percent believe that it is 3-4 percent.
Another 20 percent of landlords say that the rental yield is 4-6 percent. Additionally, 20 percent of landlords believe that the rental yield is over 6 percent.
Most sought-after Localities in Hyderabad
Although tenants are considering the option of buying property, the real estate sector in all localities in Hyderabad is not witnessing high demand.
Most people prefer buying properties in the following localities:
- Kukatpally
- Miyapur
- Nizampet
- Kondapur
- Gachibowli
These localities are witnessing a huge demand due to their proximity to multinational companies.
