Infrastructure development to drive Hyderabad realty growth in 2014
As has been the case with most major cities in India, the real estate sector of Hyderabad has also gone through a major slump since the past two years. Realty prices in the city have being considerably lower than most other metros. Besides, several infrastructure projects in the city are in various stages of development. These factors are expected to influence the growth of real estate in the city in 2014 as well as in subsequent years.
Infra projects driving realty growth:
The various infrastructural projects in Hyderabad are set to have a major impact on the growth of realty in the city. Some of these proposed projects include the 158-km long eight-lane Outer Ring Road (ORR) as well as the Metro rail. The ORR encircles the city and comprises inner radial roads as well. It facilitiates easy accessibility to any area of the city in a very short time. The proposed metro project is also set to improve connectivity within the city. Hence, the affordable prices coupled with the advances in infrastructure is set to boost the growth of the realty sector of the city in 2014.
Developers launch projects along infra project routes:
With the work on the remaining part of the ORR as well as the PV Narasimha Road Elevated Expressway nearing completion, the city is awaiting the completion of the Metro project by 2017. Inspite of various impediments to the Metro project like delay in obtaining clearances as well as issues related to land acquisition, land prices along the Metro route have already started increasing since 2013 by about 20-22%. Areas on the eastern part of the city like Uppal and LB Nagar have already seen a price appreciation between 8-12% in the last year. Moreover, the launch of the airport at Shamshabad has seen considerable development in areas like Shamshabad, Shamirpet and Kompally which has resulted in appreciation in property prices. As a result, developers have shown an affinity for these areas for launching their projects.
SEZ in Gachibowli to propel growth in realty:
Government initiatives such as the SEZ being developed in Gachibowli are expected to give a further fillip to the already growing residential realty market on the western part of the city. The central government is investing about 1 lakh crore on this project which is expected to create more than 1 million job opportunities. However, it is still premature to say whether all these initiatives will be able to tide over the adverse circumstances prevailing in the city and propel realty growth in 2014.
