Hyderabad's Real Estate: The Impact of Local and Global Economic Cycles

Hyderabad's real estate market has been significantly impacted by both local and global economic cycles in recent years. The city's thriving economy and infrastructure development have made it a prime destination for real estate investments. However, like any other market, Hyderabad's housing sector has faced some ups and downs over the years.

The impact of local economic cycles on Hyderabad's real estate market has been immense. The city's vibrant IT industry and its emergence as a hub for startup ecosystems have driven the demand for residential and commercial properties. Furthermore, the government's aggressive infrastructure development policies have led to increased housing demand in previously underdeveloped areas. The positive impact of local economic cycles acted as a catalyst for the rise of Hyderabad's real estate market.

In contrast, global economic cycles have had a more profound impact on Hyderabad's real estate market in recent years. The 2008 global financial crisis was one such example of a global economic cycle that shook the housing sector in India, including Hyderabad. The recession had caused a slump in India's GDP growth, which contributed to a fall in the property market's demand. The scenario in Hyderabad's property market worsened when the state government imposed a strict policy of allocating 70% of the area for greenery, open spaces, and roads, causing real estate prices to fall drastically.

However, the tide turned in recent years with Hyderabad's comeback on the global economic front. Post-pandemic, Hyderabad's real estate market is picking up pace and gaining momentum. According to a report by Prop Tiger, the city has become the fourth most searched metropolitan area for buying property, with searches increasing by 20% in 2021. Hyderabad's cosmopolitan and IT-enabled environment has become a factor influencing this boost.

Furthermore, the government's push for affordable housing schemes has brought much-needed positivity to the Hyderabad real estate market. The Pradhan Mantri Awas Yojana and The Telangana State Housing Development Corporation are such schemes launched to encourage affordable housing in the state, leading to an increase in the demand for affordable housing in Hyderabad.

In conclusion, Hyderabad's real estate market has been significantly impacted by local and global economic cycles over the years, with the global recession of 2008 being the most significant hit. However, Hyderabad's real estate market is slowly but steadily rising, paving the way for a promising future with its stable economic growth, urban infrastructure, and affordable housing push. The rise in demand for real estate in Hyderabad signifies a positive indication of better days ahead for the state's real estate sector, both globally and locally.