Till a while back, people had continued migrating to Hyderabad for jobs created by the booming IT sector. This trend had started in the mid-nineties and impacted the market value Telangana.  Property prices in Hyderabad started rising to a point where it was beginning to be considered very ambitious to dream about having a Hyderabad house or a property in areas in Hyderabad. 

With COVID-induced work from home, we are now witnessing the beginning of a new trend — that of reverse migration to tier-2 and tier-3 cities. We will discuss at length in this article to show how reverse migration to tier-2 and tier-3 cities will impact the market value of Telangana, especially in smaller cities such as Warangal, irrespective of property prices in Hyderabad 

Work From Home Means Work From Anywhere 

A lot of companies, including Google, Facebook, Twitter, Microsoft are considering offering work-from-home options permanently for a section of their employees. Many companies are also considering extending the temporary work-from-home option, with no end to the pandemic insight so far.

Work from home does not require skilled professionals to live in areas in Hyderabad where they were appointed. Work from home essentially means work from anywhere.  Therefore, professionals are not compelled to live in the metro cities that they originally migrated to. They can move back to their hometowns and reunite them with their family, save on the cost of living and enjoy living in lesser polluted tier-2 and tier-3 cities.

Housing Demand in Smaller Cities 

There are typically two types of property buyers or home buyers in tier-2 and tier-3 cities — NRIs and migrant professionals.  Whether or not they already own a Hyderabad house, they may look to buy property in smaller cities. They typically invest for purposes of property acquisition as well as for income tax benefits.  Then there are also buyers who wish to avail the benefits of Pradhan Mantri Awas Yojna (PMAY).

We can also expect a lot of NRIs to move to India owing to a possible loss of jobs or permission to work from home. No prices for guessing that there will be a spike in the demand for housing, as a result of reverse migration to tier-2 and tier-3 cities. 

 According to industry statistics, about 30% of annual housing demand came from tier-2 and tier-3 cities, prior to the Covid-19 impact.  However, with reverse migration catching up, we can expect a change in the dynamics.  In the coming times, we may start seeing equal or even more demand in these cities, as compared to areas in Hyderabad. Apart from impacting property prices in Hyderabad, the pandemic will also impact property prices in tier-2 and tier-3 cities.

Invest Now For the Early Mover Advantage 

For those interested in buying an apartment or a villa in tier-2 and tier-3 cities, now is the time.  You can have the early mover advantage of sorts, and get smart deals at relatively lower prices compared to property prices in Hyderabad.  As time passes by, more and more people would catch up with the trend of reverse migration. Consequently,  tier-2 and tier-3 cities will see an uptick in property prices as compared to prices for areas in Hyderabad.

Apart from housing, there will also be demand for commercial and office spaces in tier-2 and tier-3 cities. With many of these cities already marked for development into smart cities, real estate professionals can expect a lot of action in tier-2 and tier-3 cities in the years to come.

Reverse Migration to Tier-2 & Tier-3 Cities in Telangana 

In Telangana, cities like Warangal, Nizamabad, Khammam, Mahboobnagar and Nalgonda may see reverse migration trends. IT professionals and other professionals who moved out from these cities for jobs in Hyderabad may well return to their native places while the pandemic is on. Needless to say that they are bound to get thoughts about acquiring property in their native tier-2 and tier-3 cities.

Setting the stage for development, the Telangana government is seeking approval for 6 no-frill airports in tier-2 and tier-3 cities, namely Basantnagar (Ramagundem), Mamnoor (Warangal), Adilabad (Adilabad), Jakranpally (Nizamabad), Devarkadra (Mahboobnagar), and Kothagudem (Kothagudem). Although initially, these will be no-frill airports catering to small aircraft, the expansion will be taken up on demand, in a phased manner.

Warangal: The New Hotspot for Development 

Warangal is the second biggest city in Telangana, and it is the frontrunner in the state when it comes to the development of smart cities.  The Telangana government is showing a deep level of commitment to the development of Greater Warangal with a robust plan in place that will unfold during 2020-2041.

• The Manmoor airport is already being expedited, with the Airport Authority of India asking for 1,140 acres of land that is being acquired from farmers. 
• A 15-km-long monorail is in the offing.
• A 68-km-long Outer Ring Road will be laid
• Heritage conservation works will be taken up.
• 1,000 public toilets will be constructed.
• Four dumping yards will be developed for disposal of waste, as currently there is only one dumping yard at Madikonda.
• Development of Kaloji Kala Kshetram and  EkaShila Park. 
• Road widening is underway
• Junction improvement is also part of the plan.

Apart from areas in Hyderabad, Warangal is seen as the hot spot for real estate development and sales. Officials informed that while the government had sanctioned 3,900 houses, 900 houses were completed and ready for inauguration, and 2,200 are under construction.

Private constructions are also on the rise. Warangal has already contributed Rs 24.06 crore revenue from property tax to the state this financial year 2019-2020, making it the highest property tax collection in the state. Those who were not able to own a Hyderabad house can look at buying a home in Warangal before real estate prices go skyrocketing as a result of reverse migration. However, if you are still looking to buy an apartment for sale in Hyderabad, areas like Bachupally, Manikonda and Kondapur are some of the possible options. 

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