Upsurge expected in Realty market of Hyderabad : Credai
The real estate market in Hyderabad is looking up again after a prolonged slump that was experienced in the sector since 2009. The political turmoil surrounding the formation of Telangana and the crash in the realty market together with the global recession had caused prices to touch rock bottom. In a move to put to rest the fears that investors and buyers had with regards to going ahead with investments in the sector, the Confederation of Real Estate Developers Associations of India (CREDAI) assured that the market has started to look up since 2012. With the announcement of Telengana, there would further be an improvement, with prices slated to go up by 20-25% in the next six months.
NRI investments to boost sector:
The national president of CREDAI felt that with the dollar gaining prominently against the Indian rupee, it would boost NRI investments in the real estate sector of Hyderabad, with the cost of their investments becoming 20% cheaper. There has been an influx of NRI investments due to this fact and it will gain prominence with the rupee stabilising to a more constant value against the US dollar. This has already resulted in prices of realty picking up with many new projects being launched in the city, especially in the fringes. Huge investments in the corporate realty sector are expected, with many companies looking at setting base in the city and many others going ahead with expansion plans. Contrary to the price pattern that was existing in the last few years, prices have escalated by 20% in many areas since the last year, with the surplus supply already being exhausted.
Investors upbeat with current trend:
There was a temporary phase of instability following the announcement of the formation of Telangana during which prices of realty were fluctuating for about two to three weeks. However, with that phase being tided over, and the state all set to become a reality, the prices are set to move up further again. Since Hyderabad will be the joint capital of both Telangana and Seemandhra for 10 years, it will only stand to gain in the long run. Even if it is made a Union territory, it will help in safeguarding the interests of the investors who have already invested in property here. Thereby, they will get good value for their project investments when prices go higher.
Change in market scenario:
The transformation has already been noticed, from the real estate market undergoing a transition from a buyers market to a seller’s market. Compared to the period when there was a surplus of supply for residential property with reduced demand, it has transformed into a market where the demand and supply are on par, with most of the pent up supply getting exhausted since 2012. Many projects that have been recently launched are selling at a higher price of over Rs. 3,000 per sq ft compared to the price of Rs. 2,500 per sq ft that was existing a few weeks back.
Positive investment climate:
The president of CREDAI-AP suggested that investing in property in the city in the present scenario would be a wise decision by developers as prices of undeveloped property are still at rock bottom compared to many other metro cities of India. Since the city has already got excellent infrastructure facilities and other amenities, it would be a good investment if property is bought now. There are many areas on the outskirts of the city where property is currently selling for prices as low as Rs. 1,500 per sq ft. The body would undertake various measures to ease the process of development like,
initiation of the process of procuring online building permissions, reducing construction costs through bulk material purchases, enhancing the skilled labour pool and compilation of data on the availability of built-up space in the city.
