Andhra Realtors expect Spurt in demand around Hyderabad
The realty sector in Andhra Pradesh which has been badly hit by agitations related to the Telangana fiasco is looking for an upsurge in activity with the festival season drawing closer. However, most developers feel that revival in growth will be concentrated mostly around Hyderabad, with the Outer Ring Road (ORR) and the 32 radial roads arising out of it being the hotspots that are driving realty sales in the city. The recent decision of the government to announce the sanctioning of the Information Technology Investment Region (ITIR) will act as a catalyst for many reputed companies to set base there, resulting in a spurt in real estate activity and pushing the demand for residential property as well.
Demand for property in Guntur region picks up:
Besides, the Guntur-Krishna region has witnessed considerable enquiries for real estate projects ever since the demand for the formation of Telangana gained momentum. The region had witnessed a boom in real estate activity around 2004, following which the interest level had waned considerably. However, following the widespread demand for the formation of Telangana since 2009, the interest level was rekindled. As a result, the region has seen considerable appreciation in property values. Following the UPA’s return to power at the Center in 2009, enquiries for realty projects in the region peaked, due to the fact that bifurcation of Andhra Pradesh was given top priority in the agenda of UPA2. A return of this trend is being seen in the region with the announcement by the UPA of the formation of Telangana, and the process of which is already in progress.
Market dynamics of Guntur different from Hyderabad:
Compared to Hyderabad, the market dynamics of Guntur and other surrounding areas is considerably different. Unlike in Hyderabad, Guntur is not renowned for the presence of manufacturing or service sectors like IT, that can bring in the crowds in large numbers. Agriculture, basically paddy cultivation, being the main means of livelihood in the region, demand for residential property is basically from those looking to invest in a second house, or from those looking at buying property as an investment option. Hence, it is imperative that there is a sound policy structure in place that will enable to give a boost to the realty sector in the region.
Appreciation in land values in Guntur:
During the difficult phase, many investors who had invested in the region, lost as much as 50% of their investments. However, as parity has been maintained by the realty sector in the region compared to the situation that was prevalent during 2004, a spurt of fresh investments are likely to happen in the immediate future. Prices in the region have also seen a rise by 10% in recent times. Builders in prime locations like Seethamadhara and Pandurangapuram are quoting as much as Rs. 4,500 per sq ft, while many in peripheral areas like Madhurawada are quoting between Rs. 2,000 to Rs. 2,300 per sq ft.
APREDA predicts upsurge in realty of Hyderabad:
As opined by the President of APREDA in Hyderabad, the ORR project and the ongoing metro project would provide a major boost to the realty sector of the city. He also added that the announcement of the sanctioning of the ITIR is likely to have a positive impact on the sector, with prices already increasing by Rs.500 per sq ft in recent times. It is expected that, at a property show organised in the city during the end of October, more than 1,500 transactions worth between Rs. 400-500 crore is likely to happen, thereby providing a much needed impetus to the realty sector of the city.
