Revival Expected in Hyderabad Realty Post Elections
The Andhra Pradesh government has gone ahead with various policy changes so as to provide the much-needed impetus to the sagging real estate market in the city. This comes at a time when political uncertainty in the region has pushed the realty market here many notches backwards.
Changes made in 2013
The government has brought about few drastic changes in 2013 so as to boost the realty sector. To start with, the planning approval process has been altered by introducing the online processing of applications for plotted development projects. Besides, a green channel option has been introduced for layout development approval with a stipulated time period of seven days. This option would be applicable both in Hyderabad Metropolitan Development Authority (HMDA) as well as Greater Hyderabad Municipal Corporation (GHMC) areas.
Another notable development brought about by the government was reduction in stamp duty from 7.5-8.5% to 6%. However, this move has not had much of an impact on the realty sector due to the fact that the guideline and market value of property have increased subsequently, across all the micro markets of the city. The Hyderabad realty market, which is predominantly end-user driven, has seen a fall in housing stock in recent times. Considering that the city has been through a political turmoil with regards to the formation of Telangana, realty developers in the city are expecting that the impending General elections would enable resolving the deadlock caused as a result. Meanwhile, many private equity (PE) funds have expressed their desire to engage in housing development across the city.
Appreciation seen in areas surrounding Gachibowli
Lately, areas such as Mokila, Kollur, Nadagalla and Tellapur have witnessed an increase in real estate activity. Moreover, areas in the vicinity of Gachibowli and the financial districts, located on the western part of the city, have seen considerable appreciation in property values. These areas collectively have the potential of creating more than one lakh jobs every year. Due to the Outer Ring Road (ORR) passing through these areas there has been considerable improvement in the social infrastructure along these areas. This has resulted in an influx of multi-national companies and corporates to these areas.
Revival expected post General elections
It is expected that the present sluggish environment is likely to continue in the realty market of the city until the General elections. However, the future looks promising and is expected to usher a new era in realty investment across the state in general. Hyderabad is also expected to contribute significantly to this development in real estate.
