In spite of the slowdown in the residential market in Hyderabad and its environs, there is positive outlook, with the commercial space shaping up well and residential segment set to follow, according to a study released by real estate consultancy firm Knight Frank.

An upcoming residential area Puppalaguda–Narsingi cluster close to the IT hub of Hyderabad is projected to witness price appreciation by 2020, the report observes.

In the second edition of its Residential Investment Advisory Report 2016 for the Hyderabad market, Knight Frank India identifies the top investment destinations in Hyderabad for the next five years (till 2020) and also reviews the performance of the previously recommended destinations.

Strong demand and restricted supply, coupled with proximity to the employment hubs of HITEC City, Kondapur, Kothaguda and Gachibowli, are the primary reasons for the emergence of this cluster as an investment destination.

This is the most affordable residential cluster within a 15–20 minute commute to the prime employment hubs. Additionally, 10 million sq ft of office space is expected to be added in the next five years, which would create incremental employment of approximately 125,000. This is likely to further support residential price growth in these locations.

Uppal and L.B. Nagar in the east and Falaknuma in the south are also expected to see significant improvements in terms of connectivity through the metro. However, locations with comparable prices in the west will prove to be strong competition, as they are in close proximity to the western employment hubs, the report observes.

The prevailing prices in Hyderabad are the lowest among all the frontline cities of India. Excellent connectivity and well-developed infrastructure have ensured that residential prices in most locations have remained in a similar price band.

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