How to Plan an Apartment Building for Rental Income in Hyderabad: A Step-by-Step Guide for First-Time Landlords

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Investing in apartment construction for income is a really good idea in Hyderabad. This city has a real estate market that is growing fast. Because there are IT corridors and better infrastructure people want to live in Hyderabad. So when you build apartments for rent you can get money from them every month. Over time these apartments will also become more valuable. Investing in apartment construction for income is one of the best ways to make money in the long run, in Hyderabads real estate market.

To be successful you need to plan everything. It is not just about building something. For people who're landlords, for the first time it is really important to understand how to evaluate the land get the necessary approvals make a budget create a timeline and design a place that people will want to rent. Landlords need to think about land evaluation and approvals and budgeting and timelines and rental-focused design.

At KoreBuild Homes & Structures we help people who own land and investors turn their plots into properties that make a lot of money. This guide will show you how to plan an apartment building in Hyderabad one step at a time so you can have a rental apartment building, in Hyderabad that people want to live in.

Step 1: Evaluate the Residential Plot Carefully

When you are thinking about renting out a place the plot of land is really important. It is what will decide if you are successful, with renting or not. The plot itself determines your success. You have to think about the plot before you think about what the house will look like or how it will be built.

Key factors to evaluate:

Location and connectivity are really important When a place is close to IT hubs like HITEC City, Gachibowli and Kondapur it is a plus. The same thing applies to being near metro stations, schools and hospitals. This is because it makes life easier for people who live there. As a result more people want to rent a place in these areas, which increases the demand for rentals. The location and connectivity of a place really boost the demand, for rentals.

When it comes to road access there are rules about how the road needs to be for buildings that have many apartments. The road has to be a width, for these multi-dwelling apartments.

The shape and size of a plot is very important. Regular shaped plots are good because they let us make the most of the space. We can fit units in a regular plot and that means we can rent out more rooms. This is why regular shaped plots are really useful, for building.

The area around this place is getting developed. There are apartments and offices and shops going up nearby. This means that the place has a lot of potential for people to rent it out. The surrounding development is a thing, for people who want to make some money from renting out the place.

At KoreBuild Homes & Structures we do a check to see if a project is possible from a technical and financial point of view before we even start designing. This way we can make sure that the land you have is good for getting the rent, not just good, for building something on it.

Step 2: Understand FSI, Zoning & Development Rules in Hyderabad

A lot of people who are renting out a place, for the time do not realize how the rules and regulations can impact the money they get from rental income. These regulations can really change how rental income they actually get.

Important terms to know:

The Floor Space Index (FSI) tells you how space you can actually build on your land. If the Floor Space Index is high that means you can build more. When you can build more you can make units. When you have more units you can get more money from renting them out. So a higher Floor Space Index is good because it means you can get a rental potential, from the Floor Space Index.

Zoning regulations determine what kind of apartment you are allowed to build—residential, mixed-use or commercial.

Setbacks & height restrictions influence parking, ventilation, and unit sizes.

Approval authorities in Hyderabad:

  • GHMC/HMDA – For plots within Greater Hyderabad limits
  • DTCP – For suburban and semi-urban layouts
  • RERA – Mandatory for apartment projects being sold or marketed

Following the rules is very important. It helps you avoid waiting for a time and paying fines. KoreBuild Homes & Structures takes care of everything that needs to be approved. This means KoreBuild Homes & Structures makes sure your project with KoreBuild Homes & Structures is safe, from a point of view and you can afford it financially.

Step 3: Plan the Apartment Design for Rental Demand

Rental apartments need to be efficient and last a time. They also have to be appealing to the people who live in them the tenants.

Design strategies that increase rent:

  • Optimal 1BHK & 2BHK mix (high demand in Hyderabad)
  • Good ventilation and natural light
  • Functional layouts with minimal wasted space
  • Separate electricity & water meters
  • Adequate parking and common areas

Luxury finishes must be balanced with durability. Materials should last long and still look modern. KoreBuild’s architects specialize in rental apartment designs that maximize units while ensuring comfort and compliance.

Step 4: Budgeting Your Apartment Construction (Realistic Ranges)

Approximate construction cost ranges in Hyderabad:

  • Basic rental finish: ₹1,900 – ₹2,200 per sq.ft
  • Mid-range quality: ₹2,300 – ₹2,700 per sq.ft
  • Premium rental apartments: ₹2,800 – ₹3,300+ per sq.ft

Budget components include:

  • Construction & labor
  • Government approvals & statutory fees
  • Lift, power backup, fire safety
  • Water systems & drainage
  • Contingency (4-5%)

KoreBuild Homes & Structures ensures transparent cost estimation with no hidden charges.

Step 5: Figure Out How Long The Construction Will Really Take

Typical timeline for a mid-rise rental apartment:

  • Planning & approvals: 1–3 months
  • Construction phase: 10–14 months
  • Finishing & occupancy readiness: 1–2 months
  • Total duration: 14–20 months

KoreBuild manages schedules, monitors milestones, and addresses issues early to prevent delays.

Step 6: Be Careful Not To Make Mistakes That Reduce Rental Returns

Common mistakes include:

  • Over-spending on luxury features tenants won’t pay for
  • Poor parking and access planning
  • Ignoring soundproofing and ventilation
  • Non-compliance with fire and safety norms
  • Choosing inexperienced contractors
  • Poor material selection leading to high maintenance

KoreBuild Homes & Structures focuses on long-term durability, not short-term savings.

Step 7: Think Beyond Construction – Rental Strategy Matters

Consider:

  • Target tenant profile (IT professionals, families, students)
  • Expected rental range per unit
  • Maintenance and management ease
  • Future resale or redevelopment potential

Our team supports investors with construction decisions aligned with long-term rental ROI.

Why Choose KoreBuild Homes & Structures?

Led by a Chartered Accountant from ISB, KoreBuild has completed 50+ projects with 12+ years of experience. We deliver on time, within budget, and with quality.

We are not just builders—we are your Partners in Build—Today, Tomorrow, Forever.

Final Thoughts

Building an apartment in Hyderabad can generate steady income if done correctly. From plot selection to budgeting and rental strategy, every step matters. KoreBuild Homes & Structures supports you from feasibility to final handover.

Build smart. Build for income. Build with KoreBuild.

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