Posted On October 7, 2016 By In Telangana And 613 Views

Hyderabad realty back on growth path

HYDERABAD:  The Hyderabad realty has come out of a subdued business cycle with prices of residential properties poised to go up backed by growing demand for commercial space and properties in the IT hub. Experts indicate projected shortage of commercial spaces. As the newly carved out Telangana State works on development of new districts, Hyderabad is likely to see the addition of several new nodes, offering potential for growth. Interaction with various real estate sector players shows that the prices are still in the affordable range when compared to not just major metros but other cities. But, this is not likely to last long as builders have kept the prices under control for far too long, realtors said. “In the recent times, several builders have jacked up prices and if the current trends are any indication, we may see a hike of up to 5-10 per cent,” P Dasarath Reddy, President of the Telangana Real Estate Developers Association (Treda), said.  “We are seeing some clear trends when it comes to Hyderabad realty. The subdued business cycle is behind us, the sales volumes have begun to steadily grow and so also enquiries. There is potential shortage of commercial space, and the prices of housing projects are likely to go up,” Dasarath Reddy said. R Chalapathi Rao, Executive Vice-President of Treda, said Hyderabad has developed commercial space of 50 million sq ft and is set to add about 16 million sq ft over the next three years. But, significantly, there is shortage of quality commercial pace in Hyderabad as there has been lag in development of new projects. “If the current trends are any pointers, Hyderabad commercial space is likely to go up to 100 million sq ft by 2022. While the A Grade commercial space is fully occupied (98 per cent) and there is demand for space in IT hubs, commercial space in the B grade is available,” he said. Sunil Chandra Reddy, Executive Director of Treda, said Hyderabad continues to be the most attractive investment destination when it comes to low real estate prices — both commercial and residential. The capital and rental values are much lower when compared to other cities. The cost of living too has been considered lower when compared to most major cities. Therefore, it is right time to invest.” There is no proper data on the extent of housing inventory. Due to the slow pace of launch of new projects in the past few quarters, there is not much inventory contrary to general perception. Lately, a number of new projects have been launched. With the Telangana government seeking to attract more IT companies and manufacturing sector with new policies and ease of doing business, and the development of new nodes for development with the creation of new districts, the real estate sector is poised for better times, Dasarath Reddy said.

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