With political uncertainty in the state ending with the Centre’s move to bifurcate the state, realtors in the city are a happy lot. They believe, Hyderabad will once again emerge as an investment destination which will lead to an uptick in real estate prices.
The realtors at the ongoing Property Show-2014 organised by the Confederation of Real Estate Developers’ Association of India (CREDAI) expected the city to compete with other metros and are hopeful of revisiting the boom period within no time.
Realtors believe unlike other metros, Hyderabad has not reached its saturation point in terms of real estate market with the availability of many open lands in and around city.
Said Saif Ali of Aparna Constructions, “It is a misconception that the city has reached its saturation point. In fact, one can easily find that Gachibowli, Kokapet, Maheshwaram and Adibatla stretch has a great potential for both residential and commercial establishments. With a few IT companies having already planned to establish their centres nearby, there will be a huge demand for the land here. Likewise, there are many other places.”
Besides, the availability of well-developed infrastructure and transport connectivity, the city is likely to give a tough competition to other metros as an ideal investment centre in the coming years. “Nowhere in the country is a city where one can reach any place within 30 minutes to 45 minutes from any nook and corner of the city, except Hyderabad. The connectivity will be further enhanced with the metro rail,” says Ch Ramachandra Reddy of RV Nirman Private Limited.
Realtors say when that the Hyderabad realty market was doing well in 2007 on a par with the other metros the economic slowdown and subsequent political crisis in the state had a debilitating effect on the city investment scenario.
“In 2007, the real estate market in the country was at its peak. The land prices in Hyderabad were on a par with those in Chennai, Bangalore and Pune. When you compare the prices in 2013, the prices of other three cities have doubled but those in Hyderabad stagnated. If there is any increase in the cost of buildings, it is only due to the increase in labour charges and material prices,” said another realtor.
For their part, buyers feel that investing in Hyderabad is the safest bet despite the talk that many cities in coastal Andhra are competing for the capital of the truncated state. “I agree there is is a lot of speculation that cities in coastal Andhra are likely to become development centres in the near future. Though I belong to Vijayawada, it is better to invest in Hyderabad as the city has already got good hospitals and well-developed infrastructure,” says K Subrahmanyam, a retired employee of Singareni Collieries.