Hyderabad: Everything is going well with Hyderabad’s real estate, making it the only city that is showing balanced and all-round growth. From the State government’s push to strong fundamentals in commercial real estate, the city has all the ingredients to continue its growth trajectory, says a real estate expert.
At 10.5 million sq ft, Hyderabad is number two in office space absorption in India in 2019, closely inching towards Bengaluru, which registered 11 mn sq ft of office absorption. And because of the job creation happening in the commercial side, there is also demand for apartments. Data points show positive outlook for the residential growth in the city in the coming quarters.
In most Indian cities other than Hyderabad, unsold inventory is up to 3-4 years of sales. In Hyderabad, it is only 18 months. The number of apartments sold in Hyderabad last year was 16,000 units. The unsold and under-construction apartments are only 24,000 units, which is a very healthy market to be in. Retail is also seeing good development. A lot of good quality malls are going to come in the next few years. Hyderabad is showing an all-round growth.
Ramesh Nair, CEO & Country Head-India, JLL, told Telangana Today, “One of the biggest advantages that Hyderabad has today is the city’s tech-driven economic growth and how all the large technology companies are setting up their base here. The city has attracted companies such as Amazon, Microsoft, Google and Facebook. Also, the city has evolved over the last few years by unlocking locations of potential growth. As the State noticed that almost 85 per cent of the development is happening in the west, it has drawn out the Look East Policy (LEAP) for balanced growth. Metro rail connectivity and airport’s passenger-handling capacity in Hyderabad are phenomenal. Governance and leadership is another major factor that is driving growth.”
For Hyderabad, everything is falling in right place at the right time. The State Government leadership, governance, ease of doing business in the city, a proactive industry minister such as KT Rama Rao pushing for investments into the city, who has enabled easy access to industry, give the city a competitive edge, points out Nair.
Telangana with its industry-friendly policies and administration is making a lot of difference. The State besides being a trendsetter itself, has also exhibited its ability to learn the best practices from others, which most of the States lack or do not do, he pointed out.
Demographic is also becoming a major plus for the city. A significant proportion of the population (estimated at 40 per cent is the highest in the world) in the age group of 20-40 years in the city is also adding to the city’s advantage.
On the mobility front, he said, growing cities in India are going to face congestion, overcrowding and pollution. It is time that cities should look at scalable, sustainable and smart development, using technology. The solution for urban transport for all cities including Hyderabad is going to public-private-partnerships.
“Strength of the city can become weakness of the city in three years. Development without adequate infrastructure development can put cities under pressure. All Indian cities have to gear up for this challenge,” Nair noted.
Globally, electric vehicles are being increasingly deployed for urban transport. Indian cities should draw out plans towards electric mobility and sustainable solutions. India should have strong and stringent regulations to curb pollution in cities and push for green mobility.