The growth of Hyderabad’s realty market

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Hyderabad is now home to some of the largest organisations in India which includes defense, pharmaceutical, educational and IT organisations. In fact, Hyderabad has established itself as one of the biggest IT hubs in the country. With a world-class infrastructure which consists of International airport & metro connectivity, the city has been successful in attracting the multi-national workforce. This has led to the rise in the demand for office spaces and residential units subsequently.

Despite the slump in the real estate sector, Hyderabad’s realty market is continuing its good run. The capital of Telangana is witnessing a real estate roar—when the property is slow-moving in the parts of the country. Hyderabad has emerged as the top investment destination in the real estate sector.  Even while there is an increase of over 25 percent in the cost of construction in the last two years, a lot of investors have found stability here, thus liquidating all the unsold stock. About 33 million sq ft in the commercial sector has been added in the last 4-5 years.

•    Gachibowli has witnessed astounding transformation & development in terms of real estate activity. It is a market comprising of a 15 Km stretch from Nallagandla-Tellapur to Manikonda. It is located just 6 km away from the Hi-Tech city. It has emerged as a popular IT, banking & financial services hub as companies like IBM, Microsoft, Infosys, UBS, Franklin are present here. Moreover, with the presence of top institutes like ISB, IIIT and NITH, it also has been emerging as an educational & cultural hub.

•    Due to the increased demand, many builders are now developing the residential spaces using new technologies, providing all the modern amenities which are not available even in the most developed cities of the country yet.

•    With the ample availability of space, developers are building spacious flats with home automation & IOT features.

•    IGBCs (Green Buildings) are being constructed which consumes less energy, water, and natural resources create less waste & are healthier for a living.

•    Constructions are being done with the maximum glass usage which gives 360-degree view & abundant sunlight.

•    Builders are providing flat enhancement solutions with the best interiors.

•    With the clubhouse features, there are private corridors, pools, sauna & spas and elevators.

•    A lot of space has been allocated to the parks, pocket gardens, and sky gardens.

•    Roads are broad and there is a lot of space for the parking inside and outside the projects to avoid any sort of vehicle congestion.

•    There are lakes and a lot of greenery in the area which makes it ideal for the living.

For the last few years, the residential real estate market has seen a downfall in the demand, due to which the number of unsold inventory has increased over time. The imbalance between supply and demand in term of the price has led to a rise in unsold inventory levels. This has eventually led to the correction of prices in the market.

With the introduction of the Real Estate (Regulation & Development Act), 2016, the regulatory authority set under the law, addresses issues related to the real estate market. This has led to the fairness and transparency to the process and encouraging the ultimate buyers to invest their money is more assured.

Adaptation to the Benami Transactions Act: The Benami Transactions (Prohibition) Amendment Act, 2016 lays down strict rules and penalties linked with dealings related to ‘benami’ transactions. It establishes a regulatory method to deal with disputes arising from such dealings and levying penalties to boost and institution-investor contribution and regulating the division to make India an attractive asset destination.

The combination of policy and regulatory reforms in the real estate sector has increased the risk propensity of global institutional investors as they are switching from income production to the development of assets. The trend clearly indicates their assumption of more risk in Indian real estate given the improvement in transparency and their confidence in the Indian real estate sector. Investments in development assets have increased over seven times to $960 million in the current year to date from $135 million in entire 2017, showed data from JLL India.

The economy is doing well and the GDP is also growing steadily. The current scenario is improving for the real estate. Since the job creation and commercials are growing, the demand for the residential estate is increasing. With the rise in income of buyer and lower price in the realty market, the real estate sector is making a comeback.

2018: The best time to invest in the real estate market

The implementation of RERA & GST has taken the real estate Sector in the right direction. Housing developers are now aiming their attention on finishing their current projects. According to the government’s industry research reports in 2017, housing developments, all over India, have descended by at least 75 percent. There will be more housing supply and homebuyers are in a great position to negotiate. The overabundance of available liquid assets in the banking system have driven the Reserve Bank of India (RBI) the necessary lending rates. As a result, the home loan interest rates that were listed were at least 9.5 percent in 2016 and have now been soaring between 8.3–8.4 percent.

It is a buyer’s market right now but not for long. 2018 is the best time to invest in the real estate. At present, developers are focused on completing their ongoing projects instead of launching new projects. This means the demand and supply will meet somewhere at the equilibrium soon and prices will go up.  Prices being at the lowest, this is the right time to invest in the real estate market.

Disclaimer: The views expressed in the article are solely of the author and may not represent 99acres.com's opinions on the subject. 99acres.com does not take responsibility for any actions taken based on the information shared by the author.

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