Hyderabad Real Estate in 2013

Hyderabad Real Estate market has shown stability in the second half of 2012 and this will not only ensure but spur growth of city’s realty market in 2013. After a half year spent in Telangana issue, many developers are now back to their uncompleted projects with a good demand of buyers. Currently the city has the lowest property rates as opposed to any other metro in India. Due to ongoing construction of Multi-modal Transport System (MMTS) of Hyderabad, the IT corridor @Hitech city is witnessing a growth in property prices. It includes areas like Kukatpally, Madhapur, Kondapur, Gachibowli, Shaikpet, Nanakramguda, Madinaguda, Nizampet and surrounding areas. The Outer ring road (ORR) is now a new destination of buyers. Due to the affordable properties and better connectivity, many new areas have emerged here.

Land Acquisition and Real Estate Regulation Bills are expected to be passed during the year, while there is a likelihood of Reserve Bank bringing down the interest rates. This will boost the sentiment of all stakeholders and herald a new order in the country’s Real Estate. The recent approval of FDI in multi-brand retail by Parliament will attract foreign investment , which will not only benefit the retail industry but also boost the demand for commercial real estate. Additionally, the RBI can be expected to lower interest rates in the coming months which will benefit developers as well as consumers. While Mumbai, NCR-Delhi, Bangalore and Chennai will together contribute 70 per cent of the total retail space absorption, cities like Pune, Hyderabad and Kolkata will account for the remaining 30 per cent. Further, the ongoing policy reforms are expected to provide some cushion to corporates who are likely to execute their expansion plans in near future. Demand for office space is expected to be broad-based and not restricted to IT-ITeS and banking sectors. However, even as leasing activity performs relatively well, rentals are expected to remain stable owing to large upcoming supply and high vacancy levels across most cities including Mumbai, Bangalore, Delhi NCR, Chennai, Hyderabad and Pune.

Hyderabad city recorded a varied pattern of growth across various localities for example Nizampet , from Jan-March it recorded a 20 percent increase in property prices while this dropped to 5 percent in July-Sept quarter. While property prices in Miyapur, Sainikpur witnessed a positive growth by 10 percent, 8 percent respectively from July-Sept quarter. 2013 will bring a larger-than-usual number of NRI investors into the commercial space arena. It is expected that property prices shall increase by at least 30 percent in next two years. Due to the demand of affordable housing and increase in rates in some of the major locations it is assumed that the real estate market of Hyderabad will reach new heights. After a long lull, the year 2013 is expected to bring back hopes of growth to the real estate sector, mainly due to the government’s positive approach towards reforms and moderation of interest rates, experts say.