I’m a software engineer planning to invest in Hyderabad real estate, aiming to build a portfolio worth around ₹5–6 crore in the next 2–3 years.:

Hi everyone,

Here’s my situation:

Capital: I have ~₹2 crore now, and expect to add another ₹1 crore by end of 2026 (total personal capital ~₹3 crore).

Phase 1 (Now): I’m considering starting with a G+1 or G+2 residential building on a ~1200 sqft plot for rental income (budget ~₹2.2 Cr).

Phase 2 (2026): With the rest of my capital (~₹2 crore), I’m debating between another building, a plot of land for appreciation, or multiple flats.

Ownership: For legal/loan purposes, the properties would be purchased under a family member’s name, with parents as co-applicants.

Instead of asking whether my plan is right, I’d love to hear:

👉 If you were in my position, how would you structure this investment in Hyderabad real estate?

👉 Which localities would you pick for the first rental building (balancing cost and tenant demand)?

👉 For the second investment, would you choose another rental building, land, or multiple flats — and why?

👉 What blind spots or risks would you watch out for?

Thanks in advance for your insights!

anirudh

If I were in your situation, I would invest in Kondapur, Masjid Banda, or Serilingampally basically the western part of the city. This area is already well established, the land cost is still reasonable, and rental demand is strong since it’s close to DLF, Hitec City, and Wipro Circle. The IT crowd prefers renting here.

Before putting the property on rent, I would make it fully furnished, because most tenants from the IT sector don’t bring furniture, and such houses get rented out faster. If it takes around a year to construct two floors, I would build two 2BHK units on the upper floors, each of which could fetch around ₹45,000 per month in rent.

anirudh

And for 2026, with the remaining capital what I would do is avoid plots because it is a very long-term game of at least 10 years, they’re risky and usually lack clarity. Instead, I’d put my money into a pre-launch property in the Financial District. That’s the best location right now from investment point, resale value is high, and for good short-term returns, I’d sell it as soon as the project gets its OC. Renting is also a solid option since rental yield in that area is strong.

Personally, I wouldn’t go for other locations or outskirts. But if you still want some exposure to plots, I’d suggest buy a flat in the Financial District and then use the remaining budget to pick up a 20-30 lakh plot in the outskirts and just hold it for at least 10 years, if the area picks up it would be great if not its not a very big risk.