Real estate in Hyderabad after bifurcation Introduction The struggle for the creation of Telangana that had its genesis in 1969 finally over in 2013, when the Centre went on dividing AP, resulting in the formation of Telangana as India’s 29 th state. Around this period, Andhra Pradesh, now addressed as Seem Andhra, saw a surge in civil unrest that saw Hyderabad giving up its claim to its peer. Political instability prevailed over the then United States resulting in a large number of real estate projects pending. A number of planned projects also got disbanded a few years back.
Did bifurcation affect the Real Estate in Hyderabad? During the period of agitation for a separate Telangana, real estate market was plunged to a grim situation with uncertainty gripping a section of people and investors. However, even after the bifurcation, traditional investors from Rayalaseema and Andhra Pradesh stuck to their businesses in Hyderabad. Bifurcation of the erstwhile United States had an adverse impact on real estate projects in Hyderabad and RangaReddy though the later was enjoying an enviable record in global infrastructure, employment generation capacity, and connectivity. However, Hyderabad bounced back from adverse scenario.
To add woes, Real Estate in Hyderabad was hit badly by demonetization in 2016. At a time when the real estate sector in Hyderabad was limping back to normalcy, demonetization resulted in property sales coming down drastically by 40 percent. Builders, investors, and home buyers preferred to remain in ‘wait-and-watch’ mode in the face of note ban. Surprisingly, new launches in the city posted steady growth. In fact, office space recorded maximum year transactions in 2016. Approximately, six million sq. ft. of office space got transacted during the same period, which was 31 per cent more than the 4.6 million sq. ft. in 2015. Is Hyderabad an ideal location for real estate investments? Undoubtedly, Hyderabad widely hailed as Cyber city, has been the hub for internationally reputed IT and IT-enabled services, pharmaceutical companies and global business schools, biotech companies. Coupled with this, Hyderabad boasts of being the best in infrastructure facilities as the outer ring roads offer excellent connectivity with city’s suburbs. In preference to the prime metro cities like Mumbai and Delhi, Hyderabad is perceived to be the best location for buying property. What are the real factors that weigh in favour of Hyderabad Real State? Even after the bifurcation, real estate growth was not affected much largely due to sluggish real estate sentiment prevailing all over India. The property value in Hyderabad when pitted with other key IT hubs such as Chennai, Bengaluru, and Pune, property value in Hyderabad is comparatively much lesser. While certain costly locations in Bangalore would cost you as high as Rs.40,000 per sq. ft. and Rs.20,000 in Chennai, in Hyderabad, in Hyderabad, the property value is priced at Rs.8000 per sq. ft. Property rates in Jubilee Hills are coming down by 8-9 per cent along with other costly locations. In 2017, there was a 4 percent rise in rental value when compared to that of 2016. Is it a good time to invest in office space? Office space will prove to be a good choice of investment for those investors who desire to expand their real estate portfolio. If you are in terms of office space, Hyderabad stands next to Bangalore and Chennai. In the last decade, city’s office space has doubled to 56 million square feet. Commercial Real Estate Services (CBRE), the US-based global property consultant has showered praise on Hyderabad saying that the strong fundamentals of a proactive government, well-planned
infrastructure, coupled with talent availability all have transformed Hyderabad into one of the fastest growing office markets in the country. This should augur well for new recruitment as well as for housing in these metro cities. Which are the locations in Hyderabad that could be the best bet for investors? Homes in the city’s suburb areas such as Chandanagar and Kompally are further low and are priced at Rs.2, 500 per sq. ft. Middle-income home buyers can cash on the situation and would be prudent to buy property around these locations. With the dust settled over the struggle for the creation of Telangana state, property rates may soon be on the higher side.
Real estate flourishes in Medak Khammam After remaining in wilderness for six to seven years, the Registration and Stamps Department showed acceleration in revenues. Further, Medak and Khammam too have joined the growth list. IT identity to change Rajendranagar is soon going to emerge as the new IT landmark of city with an IT Industry cluster being contemplated by the Telangana Government. The greatly improved social infrastructure and affordability are fast influencing the decisions of buying a home in and around Rajendra Nagar.
Real Estate to get a facelift in near future Amazon India has already committed to expanding its operations in the city, after the global internet giant Google. If these plans take proper shape, commercial as well as residential properties will get the much-needed impetus for growth. With the successful operation of metro rail project, more investments are ready to pour into the real estate sector is set to flourish in the coming months. The real estate picture in the city is going to a get a new look as the focus has now shifted from the IT hub (western location) to other pockets in the city. What are the major initiatives taken by the Telangana government to boost the Real Estate in Hyderabad? The Telangana Government has serious plans to set up an integrated township at Tellapur in RangaReddy district adjoining Hyderabad, at a cost of Rs 100 crore. Since the township is close to the new IT corridor and the financial district, a significant demand for the location is expected. Two-bed housing scheme, the prestigious project of the Telangana Government, is making headway with the construction work related to electricity and water supply began in Greater Hyderabad. Once it comes about, it gives a huge impetus to the real estate sector in Hyderabad. Apart from the above, plans are afoot to extend the Metro Rail Services to Miyapur. Once it happens then it will give a big boost to real estate prices in Miyapur. Further, the presence of eminent multi-specialty hospitals, global business schools and top notch retail stores has accelerated the growth in the real estate sector. Conclusion The real estate industry in 2018 is tipped to be the year of affordable home for everyone. Further, there is going to be a significant improvement in housing quality, with big corporate houses such as Mahindra, Tata’s, Prestige, and Godrej’s announcing their plans to foray into the real estate sector.