The real estate industry in Hyderabad and its surrounding areas, is rapidly growing, as the political atmosphere has finally become stable after bifurcation of the erstwhile united AP.
Stable law and order situation, and industry-friendly policies of the Telangana government brought the much-needed relief for the real estate sector after a long tough time. “The sale of properties recorded around 20 percent growth in past six months” said N Jaiveer Reddy, President, Hyderabad unit of Confederation of Real Estate Developers’ Association of India (CREDAI).
Reddy conceded that the sales were at their lowest during the Telangana movement. But now the industry is slowly moving towards profits with new projects and exciting offers. The major reason for this sudden growth appears to be the changes set in after the bifurcation of AP. They waited for the right moment which has come now, he said.
Current prices for flats are ranging from `60 lakh to `3.5 crore. Hitech City and Gachibowli are the costliest areas in the city with around `7,000 per square feet. The cost of every property in the city has spiked by at least 15 per cent in the past one year, Reddy said. But the industry players claimed consistent growth in sales, despite the price hike.
“There was around 15 per cent growth in sales in the past six months,” said Rajesh, Manager of MyHome groups. Some properties which were unsold so far are also being sold, he added.
To escalate the sales of properties in Hyderabad and bring the old days back for the industry, CREDAI has recently organised its first ever property show in the newly-formed state of Telangana. Around 130 companies participated. Most of them claimed a positive response from the buyers for properties in various parts of the city. The recent trends in the real estate industry show that the city outskirts are becoming favourite resident locations. According to Jaiveer Reddy, areas like Narsingi, Manikonda, Kompally, Uppal and Ibrahimpatnam are growing as the most desirable resident locations. Affordable prices, peaceful atmosphere seems to be the major attraction of these areas. He said that all the major real estate companies are planning to build new projects in these areas. There are also opposing views which consider that outskirts may not be the ideal residential locations for many professionals who have to commute into the city for work daily, because of the current transportation facilities. But, the buyers are looking at the properties as best investments.
“I might not be able to live in my own house if I buy a house at Kompally. But Komapally is also developing fast. It will be the best investment for the future,” said Preeti Sharma, an IT professional.
Upcoming major projects like the Information Technology Investment Region (ITIR) and Pharmaceutical Industrial Zone brought a sudden surge in land rates in these areas. Recently, CM, K Chandrasekhar Rao announced four-lane roads, for connecting the city along with the special growth clusters and another Outer Ring Road (ORR) in the city. These steps by the governments might provide the right lever for the much awaited real estate boom.
Property Numbers
l Growth in prices of properties in past six months – 15 per cent
l Growth in sales of properties in past six months – 20 per cent
l Prices of flats ranging from `60 lakh to 3.5 crore
l Hitech City is the costliest – `5,000 to `7,5000 for square feet
l Fast growing areas – Narsingi, Manikonda, Komplly, Uppal and Ibrahimpatnam
Courtesy : www.newindianexpress.com