Hyderabad: The expensive real estate market in Hyderabad is pushing NRIs to look for alternatives to park their money, and they have found it in Texas.
According to a report in TOI, many NRIs are purchasing land in two popular Texas cities, Dallas and Austin, instead of investing in the real estate market in Telangana’s capital.
Comparison of land prices in Hyderabad and Texas
The price of an acre of land in Hyderabad ranges from Rs 40-50 crore, whereas in Dallas and Austin, it is USD 500,000-700,000 (equivalent to Rs 4-6 crore).
Apart from affordability, the weather in these US cities is also similar to Hyderabad.
The US state is also witnessing an increase in the presence of big firms in and around the cities. Recently, Tesla’s headquarters was moved to Austin, and the US headquarters of Toyota is also located in the state.
Due to massive development and lower land prices in Texas, NRIs prefer purchasing land in the US state instead of showing interest in the real estate sector in Hyderabad.
Real estate in Hyderabad: Why are tenants contemplating property purchases?
Hyderabad is second most unaffordable real estate market in India
According to Knight Frank’s Affordability Index for 2023, Hyderabad is the second most unaffordable real estate market in India due to the high home loan to income ratio.
Hyderabad’s real estate market becomes expensive
Despite being an expensive real estate market in India, the city remains one of the top choices for NRIs, as a significant percentage of NRIs residing in the US, Canada, the Gulf, Europe, etc., still prefer housing units in Hyderabad.
However, the trends are likely to change in the near future as NRIs are finding alternative options to park their money with better returns. Land in Texas is emerging as one such option.