Hyderabad: Real estate sentiment in Hyderabad is positive as growth returns across verticals. With government taking several reforms and measures to attract investments, improve ease of doing business and power supply, investors are looking at the city for their foray or expansion.
In an e-auction that took place on Thursday in the city for land parcels in Raidurg, the government could fetch Rs 185 crore for less than five acres land with one of the plots earning Rs 88,000 per square yard. This industry experts say, is sign of growth.
Several multinational corporations across industries are opting for Hyderabad when they are planning to set up their base in the country. Despite the impact of demonetisation on all the metros, Hyderabad could maintain not only stability but also has registered healthy growth.
Realty researchers point out that the residential growth has been around 21 per cent. Sales volumes had been healthy.
Echoing positive sentiments, C Shekar Reddy, former national president of Credai told Telangana Today, “Sales are picking up and rates are improving. There are growth signs everywhere. Several national and international agencies and bodies have placed Hyderabad among the best cities globally both in terms of living standards and ease of doing business.”
“As the city is experiencing shortage of quality office space as the occupancy levels have significantly gone up in the recent years, there is fresh demand for quality land parcels where new infrastructure can be created. E-auctions conducted by the government for land sale is getting quality response as the locations are attractive as well as the title. With transparency ensured, developers can obtain loans easily. So there are good takers of such opportunities,” he said.
Rea estate experts say that the fundamentals of the city are strong which will help realty to grow here. But at the same recommend that to maintain price leadership, development should also happen using the public-private-partnership route. There should be efforts by the stakeholders not to spread inflation to the surrounding locations to ensure affordability, they point out.
With west part of the city (comprising Madhapur, Gachibowli, Narsingi, Tellapur and Financial District) dominating the real estate activity as most of the employment is taking place in this region, land and property here dictate higher value than any other part of the city. Almost 60-70 per cent of the real estate projects are coming up in this side of the city. If grid roads are developed across the potential locations, there could be more takers for such lands, experts say.
Telangana Builders Federation president C Prabhakar Rao said, Hyderabad realty has picked up. Unlike other cities, Hyderabad is a stable market and yields safe returns for investors. Developers going for high rise buildings can always bet on investing in the city, more so in the western part.
“NRIs who were earlier thinking of investing in Andhra Pradesh, have now realised that Hyderabad is a better investment option. There is a surge in demand from them in the last six months and this trend will continue,” he informed.