The Indian real estate market over the last two years is on a sluggish path with the real estate prices remaining stable and capital appreciation on standstill in the short term. However, the trends on real estate in Telangana State especially of Hyderabad have drastically changed from slump due to bifurcation of Andhra Pradesh to optimism on the formation of new state of Telangana. Buyers and sellers of real estate in Hyderabad are exiting from wait and watch approach by actively participating in the real estate market of Hyderabad.
The real estate trends in Hyderabad are again showing positive signs by offering the likes of Bangalore a stiff competition in terms of attracting office space investments. Hyderabad with its superior infrastructure, affordability and cosmopolitan culture is scoring over many other cities that lack these attributes. The prolonged uncertainty over the last few years on the formation of separate state of Telangana has now ended with the new government taking bold steps to make Hyderabad a smart city for Telangana in term of new initiatives and development.
The year-2015 saw real estate sales having picked up in Hyderabad with developers taking initiatives like offering attractive schemes, lowering of interest rates as per the norms of RBI with Reserve Bank of India having cut interest rates by 50 basis points in two rounds during 2015.
The major attraction of real estate trends in Hyderabad seems to commercial segment that looks more attractive than residential. The commercial and leasing absorption in Hyderabad especially under the Grade A category picked up from 6.8% in 2011 to 8.6% in 2014. However, the city of Hyderabad remained the only city in India that has displayed robust trends in terms of new residential launches over the past few years with price appreciations being remained moderate thereby attracting buyers as their mid to long term property investment destination.
The top localities that are generating a lot of interest among buyers and sellers in Hyderabad include areas such as Hi-Tech City – Gachibowli (price hovering around Rs.4000-6500 psf), Jubilee Hills – Banjara (Rs.8000-15000 psf), Miyapur – Chandanagar (Rs. 2800-3,800 psf) and emerging areas like Uppal – Pocharam (Rs.2500 psf on wards). The Information Technology Investment Regions (ITIR) project is boosting the demand of real estate in Hyderabad with IT majors like TCS, Convergys and CTS coming up with expansion plans in Adibatla with their projects already on rolls. The Telangana government is also working overnight on new industrial development to enhance the real estate growth through its ITIR project covering most of the national highways and peripheral areas of Hyderabad with an investment of Rs.2.5 lakh crore. Infrastructure projects such as establishment of mobile manufacturing units (Micromax) especially as an Electronic Manufacturing Cluster or EMC will lead to growth of real estate market in Tukkuguda.
In addition, the Telangana government is acquiring 11000 acres of land at Mucherla near Srisailam Highway as part of its ambitious Pharma City project leading to a huge demand for commercial and residential projects in adjacent areas such as Nacharam, Bala Nagar, and Cherlapally etc. Overall, the year-2016 is expected to be a robust year for generating huge demand for real estate in Hyderabad.