In the recent past, there were clouds of ambiguity shadowing the growth of real estate in Hyderabad. Hyderabad's growth is largely linked to the service industry, Pharma, IT, Education and Health. For the last few years, political uncertainty resulted in investments going to the neighbouring States.
The much awaited clarity has now emerged which will boost the economy here. The city being a common capital for 10 years will allay fears of investing. Hyderabad's brand image will emerge from behind the dark clouds of uncertainty and undoubtedly bounce back to the earlier growth trajectory.
Hyderabad boasts of over a thousand global IT players, which alone accounts for more than six lakh jobs. The strength of Hyderabad lies in its superior infrastructure, an international airport, the 160 kms outer ring road, which will soon be connected through the radial roads.
The Metro will make the city truly world class. With the new Master Plan being implemented, the city is going to expand to 7000 sq. km. Moreover, the talent pool available in Hyderabad, due to over 250 engineering colleges and an array of fine Academic institutions will give a fillip to the growth.
Multinationals like Google, Microsoft, Facebook, Infosys, Wipro, Yahoo. HSBC, Dell, Amazon, Wells Fargo testify to the city's potential! The city undoubtedly is ? towering Metropolis blessed with good cultural traditions, pleasant weather conditions and good connectivity.
A major factor contributing to this optimism is that the real estate prices are very affordable in the city compared to other metros and some smaller ciites too. The city will again emerge as a favorite destination for business as the fear of bandhs and law and order problems will not be there anymore and businesses can work for all 365days. The real estate sector is very bullish and the silver lining has emerged.
The decision of separate Telangana and separate Andhra Pradesh has created lot of confusion among the real estate and developers sector. This could lead to a slump in the market for at least a period of six months.
Here are the reasons for the confusion and possible slump. The financiers/investors now will not come forward to provide finance or invest with the builders / developers as their entire concentration will be to procure properties in the new state to be formed and secondly, buyers will under an impression that due to separation, the rates will come down and they might prefer to wait for some time. Once these issues get settled, which could take at least takes six months, a boom in the market will follow.
Till now people from other parts of india or other parts of world have been hesitant on coming to Hyderabad to invest as the decision on Telangana had been pending. Now that the decision has come, clarity has been given, and people will start investing here.
Further Hyderabad is the place which suits everybody for settling down.
The decision of separation will not affect the business for long time. Lot of investments will come to the city and there will be a boom in real estate, market. It is pertinent to mention that even when the agitation was at its peak, there have been no instances of builders or developers being targeted.
The decision of Telangana has indeed created confusion, but it is only temporary phenomenon and there will be boom in real estate market.
The long waited decision on division of the State is announced. Peace prevails know. This will encourage companies to expand and attract new companies to start operation here. The driving factors to Hyderabad are climate, infrastructure, availability of land all around ORR, and economic feasibility of operations compared to other southern States.
Real estate industry in Hyderabad is going to enter into growth phase with the latest developments and we can see the increase in transactions in the coming months. The sector which struggled because of slow growth and increase in cost of construction will now come out of the difficult times. Hyderabad being made the capital for both the regions for 10 years is a welcome sign. With these positive indicators, the real estate rates will see an upward trend in the coming months. We are going to witness the demand driven growth in the coming months as most of the needy buyers who postponed their decisions earlier will start looking for properties of their choice. There is going to be real growth and not speculative growth. Real estate selling prices prevailing in Hyderabad are lower by more than 25 per cent to 40 per cent compared to the prices in Chennai and Bangalore. The rates here are reasonable and investors will not miss this opportunity.
VIJAYA SAI MEKA,
AP Real Estate Developers Association (APREDA).
Source: The Hindu.
Date: Aug 03, 2013