Tag Archives: South Indian real estate

Chennai vs Hyderabad: Where to Live and Invest in 2024

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Whenever an individual plans to shift or find a location that suits their lifestyle, the Southern side of India is always on the list, and when searching thoroughly, Chennai and Hyderabad are the two locations that click in everybody’s mind. And, why not? Both cities have robust economies, unique attributes, and a promising real estate market. 

In today’s blog, I will share my insights between these two cities, a comparison to decide which city is a better option to invest in and to live in. 

Overview of Chennai and Hyderabad

Geographic Location and Climate

Chennai: Located along the Bay of the Bengal in the eastern coast of India, Chennai’s climate is tropical. Summer can be extremely humid, the rainy season promises pours and mild winters. 

Hyderabad: is situated in the southern part of Telangana, in southeastern India. The weather in this city is hot and humid in summer but cooler and comfortable in winter. 

Population and Demographics

  • Chennai: Famous for its historical places like the government museum and Valluvar Kottam, Tamil Nadu’s capital Chennai is also an IT hub, and reflects traditionality and modernity in its culture. Currently, Chennai is home to approximately 12 million people. 
  • Hyderabad: With a growth rate of 2.48%, Telangana’s capital Hyderabad resides 11 million people. Among the attractions in this city are Charminar, Hussain Sagar Lake, and Ramoji Film City.

Key Industries and Economic Drivers

  • Chennai: Chennai is known for its software services, Hardware manufacturing, automobile manufacturing, healthcare, and financial services. The cultural significance of Chennai is Marina Beach, Kapaleeshwarar Temple, and Mahabalipuram. 
  • Hyderabad:  We all know that Hyderabad is the major center of Tech industries, pharmaceutical companies, and biotech firms. Golconda Fort, HITEC City, a hub for IT, and business parks are famous locations. 

Investing in Chennai

Real Estate Market

Chennai offers a diverse real estate market where you can invest in residential and commercial properties. The city has seen steady growth over the last few years because of the infrastructure development and strong economic base. 

Cost of Living and Infrastructure

  • Cost of Living: The living cost in Chennai is reasonable compared to other metro cities. The daily and monthly expenses are also manageable.
  • Infrastructure Development: The transportation facility in Chennai is convenient for the residents. Buses, suburban trains, and metro are the public transportation that increases connectivity. Projects like CMRL (Chennai Metro Rail Lines) are growing real estate market values. 

Job Market and Growth Potential

Chennai’s job market promises a steady lifestyle, especially in the automobile, IT, and healthcare sectors. Multiple MNCs and startups offer employment to every kind of person seeking a job.  

Promising Sectors and Neighborhoods

  • Promising Sectors: Automobile industries near Oragadam, IT parks in Taramani and Sholinganallur, and the healthcare industries. 
  • Neighborhoods: Residential areas like OMR (Old Mahabalipuram Road), ECR( East Coast Road), and Adyar are famous because of their connectivity to the IT hubs, schools, and entertainment. 

Investing in Hyderabad

Real Estate Market

The real estate market in Hyderabad is growing and becoming a top-notch place for the IT industries and MNCs to set up their businesses in this city. Whether an individual wants to reside or invest in it, this city has interesting offers in both residential and commercial properties. 

Cost of Living and Infrastructure

  • Cost of Living: Hyderabad is cheaper than most of the Indian cities. Transportation, food, and housing costs are manageable. 
  • Infrastructure Development: The infrastructure of Hyderabad has great connectivity throughout the city, the outer ring road, the metro line, and an international airport. Projects like  Regional Ring Road and the expansion of the metro line are still in progress and will provide convenient connectivity to the residents. 

Job Market and Growth Potential

Hyderabad’s IT hubs and Pharmaceutical sectors offer multiple opportunities for job seekers. Companies like Amazon, Google, and Microsoft intrigue job seekers to come to Hyderabad. 

Promising Sectors and Neighborhoods

  • Promising Sectors: Areas like Gachibowli, Genome Valley, and HITEC City are in demand. 
  • Neighborhoods: Most individuals decide to reside in Gachibowli, HITEC City, and Kondapur due to the convenience of modern amenities, IT hubs, and educational institutions. 

Recommendation: Chennai or Hyderabad?

Quality of Life

Both of the cities offer a convenient quality of life. But, settling in Hyderabad will be a better option as it is affordable and the weather conditions are better. However, Chennai is a cultural hub with rich traditions and vibrant art scenes. 

Economic Prospects

The growth of tech industries and the expanding infrastructure of Hyderabad is attracting multiple investors to invest. On the other hand, With the mix of tradition and set up of old industries, Chennai guarantees you steady growth.

Long-Term Growth Potential

The growth potential of these two cities is interesting. However, Hyderabad’s growth rate reflects that it may surpass Chennai in the upcoming years. The increasing rate of IT industries and business-friendly environments in Hyderabad shows increasing demand for real estate and attracts investors to invest. 

Conclusion

After researching the current trends, growth potential, culture, lifestyle, weather, and the development of these two cities, I am choosing Hyderabad over Chennai to live and invest. The robust infrastructure, low cost of living, and vast job market make Hyderabad a better option for investing and living. 

People interested in experiencing rich cultural heritage and steady growth can opt to settle in Chennai. 

Before finalizing your decision consider the above factors to get a rough idea to choose and tick off the list that matches your lifestyle and financial objectives. 

What effect does the water crisis in Bengaluru have on real estate?

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According to a Knight Frank report, Bengaluru’s housing sales have decreased by 2% to 13,133 units from 13,390 units a year ago. This decline is attributed to lower sales in the affordable category, despite the IT city’s office demand remaining unchanged at 3.5  million square feet. 

“The first quarter of 2024 saw a nearly  65% to 70% decline in sales in the less than Rs 50 lakh housing segment, which has reduced the overall numbers. Sales in the residential segment between Rs 50 lakh and Rs 1 crore have decreased by 7%. This is mostly because purchasers in this market segment struggle with affordability. At the launch of Knight Frank’s  India Real Estate: Office and Residential Report (January-March 2024), head of research Vivek Rathi stated, “This might just be a short-term anomaly.” 

That said, he added, even though the city’s taps are running dry, sales of homes priced at more than Rs 1 crore have increased by nearly 50%. 

Responding to a question about whether the Bengaluru water crisis had affected the real estate market, Knight Frank chairman and managing director Shishir Baijal said that the issue “has not had too much of an impact on the housing sales trajectory and cannot be attributed to the decline in sales or the market  performance.” Nevertheless, since Bengaluru is a popular city for office space occupants and a significant commercial market, the problem needs to occupants and a significant commercial market, the problem needs to be resolved. It is the nation’s epicenter for commercial leasing  Government agencies must eventually address the water problem,” he continued. 

This is the Bengaluru housing sales data stacked up. 

Bengaluru’s residential market saw 13,133 units sold overall with 13,135 units introduced and an annual growth rate of 9% YoY in Q1 2024. According to the report, during Q1 2024, the average weighted residential price increased by 9% YoY to Rs 6,145 sq ft, the second highest value among the eight Indian cities. 

As many as 993 housing units were sold in the less than Rs 50 lakh category in Q1 2024, representing a 68% decline; 6065 housing units were sold in the Rs 50 lakh to Rs 1 crore category, representing a 7% decline in sales; and 6075 units were sold in the Rs 1 crore plus category, representing a 50% increase, according to the report. 

In Q1 2024, office space transactions in Bengaluru totaled 3.5 million square feet. 

In the first quarter of 2024, Bengaluru recorded office space transactions totaling 3.5 million square feet (mn sq ft). According to the report, the nation’s IT capital drove the expansion of the commercial market and accounted for 22% of 16.2 million square feet of transactions in the top eight Indian cities. 

From 1.3 million square feet in Q1 2023 to 5 million square feet in Q1 2024, office completions in the city increased by  275%. Almost 38.46% of the new office completions in the top eight markets in the nation were in Bengaluru. 

In Q1 2024, Global Capability Centers accounted for 51% of the city’s occupancy and leasing activity. The city’s Global Capability Centers (GCC) oriented transactions grew by 38% YoY, from 1.3 million square feet in Q1 2023 to 1.8 million square feet in Q1 2024.  

According to the report, Flex office spaces comprised 26% of the city’s leasing activity. Businesses with an Indian focus and Third-Party IT Services in second and third, respectively, at 14% and 95%