HYDERABAD’S UPWARD CURVE
Hyderabad continues to be a preferred IT, life sciences destination and has remained resilient despite the pandemic. The real estate experts consider Hyderabad as the development role model for other cities in India. Veera Babu, Managing Director, Hyderabad & East India, Cushman & Wakefield further noted, “Meaningful measures undertaken by the Telangana government have helped the city to bounce back strongly. City real estate’s full-fledged recovery could be attributed to strong market fundamentals, continued State policy support and infrastructure-led growth.” C Shekar Reddy, CMD, CSR Estates Limited & Chairman-CII-IGBC, Hyderabad said, “Despite the hike in land rates and property prices, there is an ever-growing demand for housing units in Hyderabad as the affordability and property appreciation is still better than many other Southern cities and infrastructural facilities &, growing influx of IT companies and other manufacturing industries has made it an attractive location for investors and end users alike. The city offers large land banks and pro-business government policies which is a huge draw for global investors.” M Nanda Kishore, Managing Director, Ramky Estates & Farms Limited shared his views on the challenges facing the developers, “Rising land prices and raw material costs are making the construction costlier by more than 30 percent. In addition, the unavailability of GST credit input is adding to the burden. These issue, if left unresolved may hit the realty sector adversely in coming years.“ Rajashekar Reddy Venuganti, General Secretary, CREDAI Hyderabad added, “Despite the challenges, Hyderabad’s potential of development is huge for at least next 20 years. Hyderabad has grown into the most preferred real estate investment destination for NRIs. Also, infrastructure connectivity, availability of land and stability in the government are some of the important factors that are contributing to successful development of Hyderabad.” Padmapriya, Director Business Development, Phoenix Group shared her thoughts on the commercial real estate of the state. “As per industry reports the city’s office inventory has grown 11 per cent in the first three quarters (January to September) of 2021 despite the pandemic, the highest compared to all other cities in India. Nearly 6 million sq ft of office space has been leased which is expected to reach about 7.5–8 million sq ft. Thus, Hyderabad commercial real estate, by next quarter of 2022 should be touching pre Covid absorption levels.” Sumanth Reddy, Managing Director, India Institute of Real Estate said, “Pre Covid we almost matched Bengaluru in terms of commercial absorption. Moreover, the city’s potential not only lies in its infrastructure development but also the availability of abundant natural resources. For instance, cities like Bengaluru are starving for water while, Hyderabad has been connected to two rivers ensuring adequate water to the city. The state government’s progressive policies in the last five years have been the major enabler and positively, there will be a lot of demand for commercial sector in second quarter of 2022.” BOOMING MICRO MARKETS The western corridor area (Kukatpally, Madhapur, Kondapur, Gachibowli, Raidurgam, Kokapet) remains the growth engine for Hyderabad’s real estate growth. Kompally and Bachupally in the Northern suburbs have emerged as new destinations for homebuyers due to improvement in infrastructure and connectivity to the established IT hubs in the city. Kondapur, Kukatpally, Nizampet, Miyapur and Kompally saw maximum demand for buying homes in the first quarter of CY 2021. Shamshabad situated in Western Hyderabad and Chandrayangutta in Southeast Hyderabad, being in proximity to the mainstream areas, have acquired a lot of traction for the infrastructural development Residential plots in Medchal-Malkajgiri district too are much in demand and are seeing steep price appreciation. Likewise, Hyderabad's eastern corridor is an emerging micro-market that includes; Uppal, Gatkesar belt, Thallapur, and Narsinghi area. Also, belts from Airport to Mehdipatnam, LB Nagar, and beyond are projected to have good tractions & good growth. The micro-markets that saw the most interest were Manikonda Kukatpally, Ameerpet, Hafeezpet and Banjara Hills. Manikonda being the business district and Kukatpally, Hafeezpet & Ameerpet being suburbs offer bigger homes at better prices. Kukatpally and Boduppal are localities that might see more growth because of their connectivity and business opportunities available. Affordability, quality of living and robust political scenario have evoked interest of Indian and NRI homebuyers and investor’s interest in city’s middle income and affordable residential segments. With more companies setting shop in Hyderabad, there is large-scale employment generation and strong drive for commercial real estate is attracting more private equity funds in Hyderabad.
Tags : Veera Babu Managing Director Hyderabad & East India Cushman & Wakefield C Shekar Reddy CMD CSR Estates Limited & Chairman-CII-IGBC Hyderabad M Nanda Rajashekar Reddy Venuganti General Secretary CREDAI Hyderabad Kishore Managing Director Ramky Estates & Farms Limited Padmapriya Director Business Development Phoenix Group Sumanth Reddy Managing Director India Institute of Real Estate