Hyderabad: With the real estate industry progressing at a snail’s pace in Hyderabad, Veera Babu, office head, Hyderabad, Cushman & Wakefield, speaks about the ups and downs of Hyderabad’s real estate industry. Excerpts:
How would you assess the real estate commercial market under the TRS-led government?
Well, the government is making all the right noises as far as bringing more investments is concerned. IT minister KT Rama Rao had visited US and Hong Kong recently and there is a visibility of Telangana on the global map. But that does not translate into immediate results. The current market is only bringing in IT business. Other commercial markets have not benefited as much as IT industry. However, overall there is significant traction coming up in the state and hopefully that will translate into more investments.
The Residential sector has been badly hit by political instability and even one year after the formation of Telangana, it hasn’t performed as expected. Why?
Residential sector, across India, is the only market which is completely driven by the end-users. Until and unless you do not attract the investor community, the market will not rise. Even today, investors have ‘wait and watch’ perspective in Hyderabad. What works for Hyderabad is that it is the cheapest location compared to other metropolitans in the South. Only concern is that predominantly most of the focus of the investments are in the Western quadrant of the city, close to the Hitech City area.
What needs to be done to shift focus from the Western quadrant to other pockets of the city?
The upcoming Hyderabad Metro Rail can play a key role in making this happen. Once the Metro comes, a couple of locations will emerge as destination of new real estate attractions. Most people are looking to work in the western quadrant but the affordability is higher and prices are increasing. It is becoming an upmarket area, where rentals are higher and capital values are higher. So for the middle and lower class people this may not be feasible any longer, so the metro will be an added advantage.
What are the most pressing challenges that developers are facing?
Biggest concern in Hyderabad is the prices of legally available land for investors. The availability of land must be substantially cheaper.