Hyderabad: The Confederation of Real Estate Developers Association of India (Credai) Hyderabad leadership team including P Rama Krishna Rao, president and V Rajashekar Reddy, general secretary, believes that the effects of Covid-19 are felt around the world and the developers are being impacted due to the challenges of stoppage of construction, shortage of labour, difficulty in sourcing raw materials, and other issues. However, with strong consumer demographics and significant growth in IT, e-commerce and retail sector, Hyderabad real estate has all the potential to bounce back.
The team recently met MA&UD Minister K T Rama Rao and sought his intervention in helping resolve certain challenges to help the sector deal with the Covid-19 crisis. He assured the Credai officials full support for most of the requests and instructed the officials to issue suitable orders. For some issues, not directly under his purview, he assured to take the issues to the Chief Minister to seek his intervention and getting things resolved at the earliest.
P Ramakrishna Rao, president, Credai Hyderabad said, “Covid–19 is an unprecedented occurrence, which has severely impacted business and individuals alike. The lockdown imposed to contain the spread severely impacted the construction activity and caused delays in the plans for the developers impacting both the developers and homebuyers.”
On a positive note, he added, “Hyderabad real estate holds tremendous potential for significant growth with many major infrastructural developments such as the outer ring road constructed, construction of arterial roads connecting ORR has proven to render a multi-dimensional stretch to other places. Construction of strategic flyovers and rapid transit zones on the bottlenecks in the city would add to the convenience of travel and impact growth and recovery in the post-Covid era. Gachibowli, Financial District, and Hi-tech corridor have become the most attractive commercial space with major IT companies and expanding with the emergence of new office spaces & retail outlets would continue to fuel the growth. In the past few years, the unsold residential inventory in Hyderabad has declined at an overwhelming rate. We are confident that the city will recover from the impact of Covid-19 faster than many other cities across the country.”
Adding to this V Rajashekar Reddy, general secretary, Credai Hyderabad said, “Before the pandemic, Hyderabad was leading the country in the absorption of the commercial real estate and co-working spaces. The residential segment was also growing much faster than the rest of the country. As per the data from TS RERA authorities in 2017 around 219 projects with 21,665 units were registered with the authority which increased to 448 projects with 31,559 units with a total construction area of 53,496,875 sq ft (approx. 53.5 Mn sft). With an estimated investment potential of Rs 31,379 crores (as on March 2020) the outlook for the real estate is positive and will witness unprecedented growth in the next 3-5 years. We are sure, the recovery from the Covid-19 will be much faster in Hyderabad as compared to the rest of the country due to its strong business fundamentals, infrastructure, low-rates for rentals, and proactive governance across levels.”
He further added, “K T Rama Rao has initiated immediate action on our requests and suggestions to help us navigate the Covid-19 crisis and drive the real estate sector in the city on an upward spiral. Based on our requests the Government has issued four GOs which has come as a huge relief to the sector.”
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