Source: Briefing wire 15/5/2014
Since the Telangana bill there have been many reviews on how it will impact the economy and real estate sector. Despite being one of the most developed cities in India, Hyderabad went through a general period of uncertainty in the political front. Impact was clearly seen in many industries in the state of Andhra Pradesh. 2014 saw the rise of Telangana and Seemandhra, the twin states after years of political struggle. The bifurcation coupled with the general election further created an ambiguity and in the realty sector. In spite of the different conditions, Hyderabad has emerged as a strong hold of the realty sector today.
Since the Telangana bill there have been many reviews on how it will impact the economy and real estate sector. Despite being one of the most developed cities in India, Hyderabad went through a general period of uncertainty in the political front. Impact was clearly seen in many industries in the state of Andhra Pradesh. 2014 saw the rise of Telangana and Seemandhra, the twin states after years of political struggle. The bifurcation coupled with the general election further created an ambiguity and in the realty sector. In spite of the different conditions, Hyderabad has emerged as a strong hold of the realty sector today.
2014 will see the real estate industry flourish in the city with many deals and offers for prospective home buyers. The buyers will capitalize on the low prices, pushing sales in the city. The unsold inventory in the city is seen to be sold at competitive prices making way to new projects in Hyderabad. The residential real estate market for now seems to be a buyer centric market. Affordable housing options are many to choose from, improving buyer sentiments. Compared to other metros like Mumbai, Delhi and Chennai where prices are sky-high, Hyderabad with affordable pricing in the market is a refreshing change. One can avail apartments in Hyderabad with a reasonable price band in areas of Miyapur, Gachibowli, Lingampally, Kukatpally etc. These localities boasts of close proximity to the IT hub of the city.
Rentals is also said to improve in Hyderabad with the development of good office spaces. Demand for organized commercial real estate has been stagnant for now, but this will change in the next six to eight months. If buyers are looking to rent or buy a flats in Hyderabad, this is the right time as everything is readily available in good prices, favourable the buyer and the tenant. Currently one can rent a 3BHK apartment or individual house in HITEC city or neighbouring areas like Kompally for as low as INR 16,000 per month. This is very low when compared to other metros in India namely Mumbai, Delhi, Bangalore and Chennai. Kolkata can be considered to be in par with Hyderabad when it comes to low property prices.
HITEC city is the biggest driver of employment and real estate in Hyderabad. IT/ITes sector is said to further grow in the region and the builders are sure to benefit greatly from this. The commercial real estate market is also said to revive with investors gaining confidence after the finalization of the bifurcation.
The Hyderabad realty sector is in its nascent stage if experts are to be believed. Its development is not only because of low prices or political uncertainty. But also because the city offers good infrastructure facilities for its residents. Buses run by APSRTC have mapped the city very well. The upcoming Hyderabad metro rail project will also give the city a five star status. In the next 5 years, we are ready to see a shift in the Hyderabad real estate market. This upward trend is going to greatly benefit the state’s economy and real estate.
Sulabha is an expert in India real estate. She has also authored many studies for builders in Hyderabad and real estate experts.
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