With the ‘T’ issue resolved and a new govt. in place, construction is expected to shrug off the inertia of the past 4 years and look to better days ahead
It is a new optimism that the real estate sector breathes. Construction activity that had taken a hit in the city and its surroundings is set to pick up and witness steady, healthy growth in the next one year. The gloom of the past four years, industry insiders say, may well have run its course.
From a boom to a nosedive, and to the subsequent piling up of unsold stocks, the construction sector underwent a roller-coaster ride in the last six years. One of the primary reasons for the fall in property interests here was attributed to the protracted separate Telangana agitation.
“We look forward to a new dawn, for stable growth and a healthy, upwardly curve,” says P. Dasharath Reddy, president of the A.P. Real Estate Developers’ Association (APREDA). After the ‘terrible’ times of the last five years, a lot now depends on the new government: its governance would propel construction activity, he feels.
Estimates put housing needs in the city and suburbs at 25,000 new units a year. Most builders say there is very little unsold stock.
“The boom had the inventory going up high and consumption failing to match it. Hence, stocks piled up for a while but it got cleared,” he claims.
Since, there were not many major project launches last year, there could be a shortage of housing units next year, say some.
“Fresh supply (of housing units) in good numbers can be expected in 2016 as we can look forward to a rush for new launches,” says Anand Reddy, executive director of PBEL Property Development. He forecasts a revival by the year-end and also a robust 2015.
“Give six months for the new government to settle down and then the positive momentum will start building up,” Mr. Reddy says.
Telangana Builders Federation president C. Prabhakara Rao rules out the possibility of capital flight from Hyderabad to the new capital to be set up for A.P.
“Speculation has already driven land prices high in cities and towns being suggested as the new capital and those from here will not be keen on investing such amounts,” he argues.
Developers see a possibility of prices rising by the year-end.
“Property prices in Hyderabad are still in the reasonable range when compared to Chennai and Bangalore. Even if there is some appreciation, it will continue to remain affordable,” reasons C. Sekhar Reddy, president of Confederation of Real Estate Developers Association of India.
Via : The Hindu