Real Estate in Hyderabad Outperforms Gold and Stocks
Hyderabad’s investment landscape in 2024 has shown a distinct preference for real estate, outperforming gold and stocks in terms of returns. As investors continue to grapple with investment choices, the city’s real estate market has emerged as the front-runner for high returns. The residential property sector in Hyderabad has seen a remarkable surge, offering investors over 26% returns in 2024. According to ANAROCK, prices have surged from ₹5,750 per square foot in the fourth quarter of 2023 to ₹7,300 in Q4 2024. This growth trajectory places Hyderabad at the forefront of India’s property market and confirms the city’s appeal to both domestic and international investors.
Hyderabad’s real estate boom is a result of consistent demand, with the city maintaining a Compound Annual Growth Rate (CAGR) of 10% in residential launches over the last decade. This stability and steady growth are further bolstered by improved infrastructure, a growing IT sector, and favourable government policies. Despite some concerns around the Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), which has been under scrutiny, the real estate market remains strong. Investors seem undeterred, showing confidence in the sector’s long-term potential.
Gold, traditionally a safe investment, also performed well in 2024, albeit at a slightly slower pace compared to real estate. Gold prices increased by 21%, marking a solid return for investors. At the start of the year, 22-carat and 24-carat gold were priced at ₹58,550 and ₹63,870 per 10 grams, respectively. By the year-end, those values surged to ₹71,350 and ₹77,840, reflecting a solid appreciation in the value of the precious metal. However, even with a reduction in customs duties on gold announced by Union Finance Minister Nirmala Sitharaman, the trend of rising prices continued, showing gold’s consistent appeal in times of uncertainty.
The stock market, represented by indices like Nifty 50 and Sensex, lagged behind in 2024, delivering more modest returns. The Nifty 50 index grew by only 9.5%, while the Sensex posted a return of 8.89%. On January 1, 2024, the Nifty 50 stood at ₹21,741.9 and the Sensex at ₹72,271.94. By the end of the year, these indices had risen to ₹23,813.4 and ₹78,699.07, respectively. Although the returns were positive, they were less impressive compared to the stellar growth observed in Hyderabad’s real estate and gold markets. This highlights the relatively subdued performance of stocks in comparison to tangible assets like property and precious metals in 2024.
From a sustainability perspective, Hyderabad’s real estate growth raises concerns about urbanisation’s environmental footprint. As the city expands and more developments come up, the demand for natural resources increases, contributing to concerns about resource depletion and waste generation. Sustainable construction practices are more crucial than ever, and developers must prioritise green building standards, efficient energy use, and responsible land development to ensure that the city’s rapid growth does not come at the expense of environmental health. Similarly, while gold remains a popular asset, it’s important to consider the environmental impact of mining and ensure that ethical sourcing practices are followed. In the stock market, investors are increasingly looking at ESG (Environmental, Social, and Governance) criteria as a factor influencing their investment choices.
As 2024 draws to a close, it’s clear that Hyderabad’s real estate market remains the most attractive investment avenue for those seeking high returns. Gold also continues to be a reliable choice for investors, while the stock market’s performance underscores the importance of diversification. Going forward, investors must consider the sustainability angle, ensuring that their investments contribute positively to both the economy and the environment. With the right mix of awareness and strategy, 2025 could see even greater growth in these sectors.
