Industry experts expect the positive growth to continue in 2020 as well,Hyderabad: While many cities across the country registered subdued activity in the real estate sector, undeterred by the trend, Hyderabad continues to hog the limelight in the sector.
In fact, real estate experts and developers opine that 2019 was a healthy year that is ending on a positive note for Hyderabad. Industry experts expect the positive growth to continue in 2020 as well.Many cities had tough times in 2019 and a few even registered stagnant growth due to economic slowdown, unstable governments and poor investment. On the contrary, Hyderabad has fared well in all these parameters, informs Confederation of Real Estate Developers Association of India Hyderabad chapter General Secretary V Rajashekhar Reddy.
Irrespective of the trend in other cities, the real estate sector in the city has been stable and is registering steady growth. More so, since last couple of years, the real estate activity has peaked, he adds.
Stable government, affordability, reasonable cost of living and increasing investments have resulted in lot of employment generation in the city. Many people, especially employees, are flocking into the city. More importantly, they are also investing in the city by owning a flat or villa and they constitute about 30 per cent of the total consumer share, he explains.
It is not just the domestic sector. Hyderabad has witnessed steady rise in the retail, office, logistics sectors. This year, Hyderabad has beaten Bengaluru in terms of office space consumption, he adds. Further, the State government is now focusing on decentralising the growth across all the zones. High rise structures and luxurious villas, duplex are no more confined to West zone, many such structures fast coming up in East Zone. So much so, CREDAI Hyderabad chapter had conducted an exclusive property expo showcasing different projects.
“This new year, focus will be on North zone as well. District administration is also developing North-South corridor,” said Reddy. On the escalation of prices, he defends saying it was mainly due to rising raw materials prices, cost of labour and more importantly tax component etc. Despite marginal rise in prices, Hyderabad is still much affordable and ideal investment destination for those looking to invest in domestic or commercial sectors, he reasons.
Things are appearing to look even brighter in the New Year as industry experts expect the surge to continue. Unlike in other cities, which struggled to clear the inventory, majority of those units were cleared in the city. In terms of quality too, Hyderabad is now on par with other Metros. A few projects are offering amenities matching those with international trends. Not many new projects were announced in 2019 in the city as there was delay in clearances, especially environmental and fire safety. Now that the Environmental Committee is in place, many more projects will be announced this New year, says Telangana Real Estate Developers Association president R Chalapathi Rao.
Similarly, many files pertaining to different layout approvals are also expected to be cleared by Hyderabad Metropolitan Development Authority this year. This will further boost the trend in the market, he explains. On the whole, 2019 was a good and healthy year for Hyderabad. With GST benefits likely to be extended further to the consumers, the appetite to invest is expected to increase further in 2020, he adds.