With an increase in the housing demand across budget segments, 2018 has been a positive year for Hyderabad. 99acres.com, in an exclusive interaction with Rakesh Reddy, Director, Aparna Constructions, discusses the city’s performance in 2018 and the anticipated trend in 2019.
In 2018, Hyderabad’s residential market witnessed increased demand across budget segments, when compared to other cities in India. Leading real estate markets including Delhi and Kolkata were adversely impacted by the policy interventions and are still struggling to recuperate, however, Hyderabad displayed QoQ growth. Research shows that among the seven major cities in India, Hyderabad is the only city where sales have reported an uptrend in 2018.
Although there has been a temporary slowdown, it is important to note that property prices in Hyderabad recorded a steady rise over the past decade. The factors that have significantly contributed to Hyderabad’s real estate growth include government policies, infrastructure, urban migration and the availability of amenities. We believe that these factors will continue to create a positive outlook for Hyderabad in 2019.
What is the prevailing home buying sentiment in your city?
Hyderabad has always been a prime real estate destination, owing to its expanding commercial infrastructure. As more companies are establishing their offices in the city, it has created an enormous job market and an equally big demand for residential properties.
In the year 2018, it has witnessed numerous projects being undertaken in the residential space, especially in the mid-income and high-income segments. Overall, the successful implementation of RERA has been a critical growth driver that kept the buying sentiment afloat.
How have sales, property price movement and new launches been in 2018? Is the trend expected to continue in 2019 as well?
As an aftermath of RERA and GST, Hyderabad developers have to realign their business models and shift their focus to the timely delivery of ongoing projects. Thus, only a few project launches were reported, particularly in the mid-income and high-income segment in 2018.
While many areas in Hyderabad have witnessed considerable growth, there is still an immense scope of development and expansion. As more industry hubs and transport centres find their home in Hyderabad, the demand for residential real estate will continue to increase in 2019.
How has the city developers prepared for 2019?
The real estate sector has witnessed a massive revolution in the past year. The resulting transparency has forced city authorities to maintain a high level of compliance in real estate project. Therefore, moving forward in 2019, project approvals will be quicker, resulting in reduced construction costs, and thereby substantial reduction in property costs. An efficient, fair and transparent system would result in a revived demand for new projects in the market.
Do you see any increase in property prices in 2019?
With the government policy interventions and renewed buyer confidence, the Hyderabad market is set to grow in 2019. Infrastructure projects and commercial growth will also play a key role in improving the realty demand in the city. The Telangana government has also proposed an investment of over Rs 20,000 crore for infrastructure development in Hyderabad. This has attracted many corporate giants to set up their offices at the IT, Financial and Industrial hubs across the city. An ecosystem that creates jobs and attracts high-quality talent is a significant driver of real estate growth which might affect property values.
When do you anticipate a complete revival in the real estate market?
Hyderabad’s commercial growth and the implementation of RERA have enhanced the overall real estate climate in the city. The availability of affordable housing has also bolstered the market and widened the pool of potential buyers. Altogether, the market sentiment is positive and likely to be the same in 2019.
How do you sum up 2018 for the city’s real estate sector? What trends can we look forward to in 2019?
The year 2018 was a milestone for Hyderabad’s real estate sector. We would describe it as a year of consolidation and revival. The implementation of RERA in full swing has been a positive step towards increasing transparency and boosting buyers’ confidence in the real estate market. As far as market dynamics are concerned, we foresee potential buyers in the market in the upcoming year.
A major trend that will drive market growth in 2019 is the increased supply of affordable housing units. Since the affordable housing sector is the most incentivised segment for both developers and buyers, many reputed developers are now launching projects in the affordable segment and buyers are also seen leveraging the situation.
Overall, 2019 is expected to be a positive year for the Hyderabad market.