Farmhouse vs. City Home: Which is the Better Investment in Hyderabad?
It is always a Herculean task to invest in real estate between a farmhouse and a city home when the real estate market is growing at a faster rate and is the fastest-growing city in Hyderabad. Each option also has it own benefits and therefore the decision of which investment to take is based on many factors such as investment objectives, personal and financial lifestyle, and economic factors. In this article, we would discuss as to how different farmhouses are from normal city houses in Hyderabad and whether they can be considered as good investments or not.
Understanding the Real Estate Landscape in Hyderabad
The city has of late been in demands for real estate investment due to its developed IT industry, good infrastructure and reasonable price level as compared to other metros in India. There is an endless choice of real estate investment options starting from exclusive apartments in the city center to the detached Houses & Farming land at the outskirts of the city. More and more people invest in this market that opens new opportunities and it is important to choose between them considering the advantages and disadvantages.
Investment Potential: Farmhouse vs. City Home
Farmhouse Investment in Hyderabad
Farmhouses have therefore been perceived as viable investment opportunities among investors who are in need of residential spaces that are free from noises and hustle and bustle of the business centers. Such houses, which are mostly built in the outskirts of Hyderabad, are spacious, have many trees and leafy surroundings and are very peaceful, which makes them suitable for both weekend houses as well as homes for those who would rather live away from the bustle of the city life.
Key Advantages of Investing in a Farmhouse:
- Spacious Living: The usual size area of the farmhouses is relatively larger than other kinds of houses as lots of space is available for recreation or for tending to gardens or other crops. This is a great benefit for people in search of a recreation that leads to natural and seclusion oriented life.
- Potential for Appreciation: In the future, some of the regions which are still on the outskirts of Hyderabad may experience a large spike in the price of properties. Purchasing a farmhouse now will be very lucrative because with time, development gets to these areas enhancing its value.
- Rental Income Opportunities: It’s also possible to arrange the farmhouses for renting them out for holidays and events, thus generating extra income. They include, staycations and new tradition of having one-bush weddings also call for such establishments.
However, when one is investing on the farmhouse, there are some hurdles that he or she is most likely to experience. The location may not be strategic and this may make it difficult for one to commute to and from the place on a daily basis. Furthermore, the costs associated with maintenance of a large piece of land are very demanding hence not everyone can be able to afford the costs to maintain it.
City Home Investment in Hyderabad
On the other hand Hyderabad city homes especially in well developed regions have certain advantages or pluses with them. Such properties are normally situated in strategic areas which include proximity to basic infrastructure, commercial district, and social infrastructure.
Key Advantages of Investing in a City Home:
- Prime Location: Most of the homes in cities have good access to social amenities such as schools, hospitals, shopping centers, and working places among others. This makes them very popular for both self-usage as well as to sublet for other people.
- Steady Appreciation: The properties they have in urban areas on the other hand continue to appreciate over time due to high demand for housing in the market both for use ashomes as well as commercial spaces. This makes city homes a rather safe form of investment as the rate of return is more or less standardized.
- Rental Demand: The demand is also found to be high in city related locations and thereby the markets have prime locations in Hyderabad mainly targeted at IT professionals, students and expatriates. This creates a stable income when it comes to rental for city homeowners.
Nonetheless, the price that one has to pay to acquire the city home is bigger than that of a farmhouse especially if it is located in the right area. Furthermore, space might be a constraint, the amount of space may be considerably less than that of a farmhouse and the flexibility to change this enormously is also questionable.
Resale Value and Market Trends
In order to decide when buying a farmhouse or a city home, it may be useful to evaluate the trend of the sales in Hyderabad.
Farmhouse Resale Value
This implies that the resale value of farmhouses may differ in terms of location, size of the farm house and the development in that area. If the location of the farmhouses is near to some emerging infrastructures like high way, metro and so on then those farmhouses are appreciated more quickly. But it may, particularly for those situated in remote areas, take some longer period to sell and also it does not show the same rate of appreciation as well.
City Home Resale Value
Urban houses especially the well-located ones may fetch a higher price and have the potential to retain that price for longer duration. With regard to Hyderabad, it is understood that there is untamed demand for centrally positioned real estate owing to the growing population in the city and expanding urbanization thus, homes in the city are likely to hold and earn value in the long run.
Cost of Ownership: Maintenance and Other Expenses
Another factor that should not be overlooked is the cost of the car which encompasses the cost of maintaining it, the taxes among other costs that are incurred.
Farmhouse Maintenance
As a result, the house in the countryside especially a farmhouse might be expensive and demanding in terms of time as compare to city house. This is due to the fact that the stretch of land is slightly bigger and it needs constant tending such as gardening, security, and other maintenance aspects. Other expenses include costs of utilities because the property in question may be large for the number of tenants, the location being an area where the cost of utilities is relatively high.
City Home Maintenance
Homes in the city especially those that are in the apartment are most of the time cheaper when it comes to maintenance. In some of these properties, there are common features such as security services, water, and maintenance services which are provided collectively for all the units and therefore cutting down on individual costs. However they might contain high property taxes especially in urban inclined areas.
Conclusion:
As such, it will always come down to the question of whether I would like to invest in a farmhouse or city home in Hyderabad, which depends with the investment returns that one would like to make and lifestyle and economic ability. These are some advantages of the farmhouses: large area, low noise level, opportunity for the further increase in the property’s value, the possibility of the constant stay in the country without living in the city. In contrast, city homes are convenient, experience stable gains, and are in high demand for rental, which makes city homes safer and realistic investments for people with homes in urban areas.
That is why one should look at all the possibilities, seek an adviser in real estate, and evaluate the goals set for the near and distant future. Hyderabad being a front runner in the real estate panorama, both the farmhouse and the city home investment appears to hold a great promise for investors.
FAQs
1. What is the affordable price which people can opt for a farmhouse in Hyderabad?
Ans. The current price range of farmhouses in Hyderabad can be seen from the table below depending on their location, size and facilities: In general it varies from 10 lakhs to 50 lakhs upto 5 crore rupees in many cases.
2. It is relatively easier to rent out a farmhouse than a home in the city of Hyderabad?
Ans. There are higher demand for home rentals in the urban areas hence it is usually easier to rent out a city home. Still, farmhouses are also capable of producing rental income, and this is more especially when the houses are sold and let as holiday homes.
3. To which of the Hyderabad’s areas is it wiser to purchase a farmhouse?
Ans. Some of the localities included in the CHEG are Moinabad, Chevella, and Shankarpalli, which are quite favorite with investors as they offer beautiful landscapes besides guaranteed capital appreciation from farmhouse investments.
4. Are the Hyderabad farmhouses good for resale investments?
Ans. Any farmhouses on main lines can prove to be good capable of getting good resale value as the areas expand and more people are attracted to it. But the point is that they may not appreciate as fast as the city homes do.
5. What differences is there in the basic manner of maintaining a farmhouse as that of a city home?
Ans. Country houses are relatively complex to maintain because of their expansive acreages as compared to city homes.