Hyderabad: Hyderabad has topped the national charts for being the fastest market in terms of completing residential projects — both small (100-500 units) and large (over 500 units) — in the last one decade.
The average completion time for small projects in the city for the period 2010-19 stood at 4.4 years each while it was 5.4 years for large ones. Hyderabad is closely followed by Bengaluru, with 4.4 years and 5.5 years, respectively. Chennai saw an average completion time of 5.6 years.
Anarock Property Consultants chairman Anuj Puri said Hyderabad has a competitive edge over others because builders here mostly work on a joint development model wherein the landowner gets a pre-decided share in the built units. “This eases his financial burden far more than those in Delhi-NCR where they mostly purchase the land,” he told Telangana Today. Though Hyderabad saw the least new supply of residential units in the last decade among all top cities, Puri said this in a way is good as it does away with the issue of oversupply.
Speedy project approvals or single-window clearance, such as TS-iPASS, has been the long-pending demand of developers. This is where Hyderabad stood out. “Long-pending approvals have proved to be a major deterrent in several project deliveries so far. If there are faster clearances, it will help developers save on cost as well as result in timely delivery of projects,” he said.
Most developers in southern cities such as Hyderabad are fairly professional in their business practices and consciously try to adhere to project timelines, Puri noted.
Anarock research on the top seven cities reveals that the average completion time for large residential projects in the National Capital Region (NCR) during the period was 7.2 years, the longest project completion time. The average time taken to complete smaller projects was 5.2 years, and 6.5 years for large projects, across these cities.
Highlighting a broader phenomenon, Shrinivas Rao, CEO — APAC, Vestian, said, “The Hyderabad real estate market is well on its way to realising its true potential. The trends witnessed in 2019 is a strong indicator of the underlying current, particularly regarding the office sector, and we foresee the city overtake Bengaluru in 18-24 months.”
Hyderabad witnessed the highest quantum of office space absorption in the country during the second half of 2019, surpassing Bengaluru — at approximately 7.1 million sft. The total absorption for 2019 was recorded at 11.5 million sft. The city witnessed the infusion of 11.2 million sft of new office space supply last year, according to Vestian, a property consultancy and transaction advisory services company based in Chicago.
The city’s residential sector saw the launch of 15,785 units in 2019, up 4% over 2018. On the retail front, by the end of 2021, the number of malls is expected to increase to 12 from eight.
“A number of proactive government measures such as the ‘Look East Policy’ and the proposed Growth In Dispersion Policy as well as infrastructure initiatives such as metro rail connectivity and the Strategic Road Development Plan would further strengthen the city,” said Rao.