The real estate scenario in Hyderabad has surprised many a real estate analysts because, at a time when the top metropolitan cities in the nation have been going through a slump in the realty sector, the sales figures, new launches and demand in commercial and residential spaces have shot to great heights. Considering the current real estate scenario of Hyderabad it can be safely said as one of the fastest-growing real estate markets in the current fiscal year.
The real estate pricing has been quite low in the first half of the financial year and it is set to experience a major boost in the second half of the financial year owing to the improved infrastructure of the city and an increase in demand of the housing sector. A proposed investment of a whopping Rs 20,000 crore for the infrastructural betterment of the city has helped boost growth in the sector.
The infrastructure of the city is noteworthy with the recent metro rail construction; also the Outer Ring Road makes commuting hassle-free from Hyderabad suburbs to the city centre. With such transportation development that eases communication, there have been million-dollar investments by global IT and e-commerce giants in the suburb locales of Hyderabad. This has influenced the housing sales by an increase in 14% and the office segment witnesses a steady 40% growth in the first nine months of this year. Hyderabad also topped the chart in net absorption at 36% after the robust capital flow for commercial and infrastructural development. The unsold inventory has also reduced substantially in the same period. “The robustness in the infrastructure and availability of skilled manpower have attracted and continue to attract many companies in Hyderabad,” says Chalapathi Rao, the President of Telangana Real Estate Developers Association (TREDA).
Hyderabad proposed infrastructural development
The Central Government has planned major investments in the city of Hyderabad in sectors such as logistics, IT, agro-processing, pharma and aerospace; while the State Government is planning to leverage this infrastructural development and spike the existing real estate demand.
The ongoing infrastructural development that will drive the momentum in Hyderabad realty are:
- Extension of the metro rail to connect the major city junctions that will facilitate convenient commuting
- Construction of Musi River Expressway
- Converting 52 major junctions of the city as a signal-free zone that will transform the picture of Hyderabad traffic conditions
- Subways and underpasses to be built in major junctions like Jubilee Bus Stand to Shamirpet-Turkapally, Uppal-Ghatkesar, Paradise Junction-Kompally, and other primary locations
- Key projects like Aerospace Park SEZ, Gaming and Animation Park, Smartron Data Centre Campus, Pharma City and Life Sciences & Medical Devices Park
Investments in some of the major sectors of Hyderabad
- Logistics Sector: Government plans to build 8 logistic parks along the ORR
- Pharmaceutical Sector: A $100 billion life sciences and pharmaceutical industry in the next decade
- Aerospace: Lockheed Martin might collaborate with TATA to build F-21 fighter jets
- IT Space: Telangana has received 1.09 lakh crore in the past five years to invest in the IT sector
TREDA’s president, Mr Rao has further added that Hyderabad might experience a surge in the real estate sector in the second half of the year due to a mismatch in demand-supply.
The ORR acts as a driving force to boost the real estate sector in the city. Major companies are looking into open lands available in the suburbs for development of commercial space. This has led to areas like Tellapur, Nallagandla, Gopanpally, Serilingampally, Miyapur, Chandanagar, Nizampet, Rajendranagar and Manikonda, which are in proximity to the IT corridor of Gachibowli, Financial District, Kondapur and Madhapur, among the favourite destinations for the city dwellers.
Also, the Radial Ring Road (RRR) project undertaken by the Government of Telangana aims at giving better connectivity plans to extend the existing Ring Roads (inner/outer) to 4/6 lanes. The proposed 159 km long outer ring road project is aimed to ease the traffic jams around the cities and encompasses towns like Patancheru – Shamshabad – Hayathnagar – Medchal – Patancheru also linking other National Highways, State Highways, MDRs and other roads. To implement and supervise this project, the Government of Telangana has initiated a new department called Hyderabad Growth Corridor Ltd (HGCL).
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