HYDERABAD: With Hyderabad’s real estate market evolving over the last 18 months, realtors feel that there is a shift in the mindset of the people, who are seeking to invest on the outskirts of the city and not just in prime central areas.
Areas like Shamshahbad, Adibatla, Uppal, LB Nagar and other areas near Srisailam Highway are fast picking up as realtors observe an increasing trend of upcoming projects in commercial, retail and residential sectors.
“People have to go to the outskirts, because the landlords in the city have become greedy and it is becoming infeasible to do any commercial projects in the city limits. B-Grade, c-grade projects in the core areas of the city are becoming non-feasible as the rentals are less and land prices and demands of landlords are very high,” asserts R Challapati Rao, national vice-president, NAREDCO.
Emphasising that the landlords were responsible for pushing the demand to the outskirts of the city, Rao, who is also the executive vice-president of the Telangana Real Estate Developers Association (TREDA), says, “The developers are sandwiched between the land owner and taxes. Property tax in particular, is very high in commercial areas. Parking is another major problem as landowners demand 50 per cent of parking space to themselves and there is no space left on the road.”
Experts point out that retail is the only sector which is doing well in the city’s central areas but that is suffering from a high mortality rate.
As far as residential market is concerned, majority of the developers have opened up projects on the outskirts, leading to a significant rise in demand. “There is definitely an increase in residential demand on the outskirts as you get good facilities for a cheaper rate. If the price is `4,000 to `6,000 per sq.ft in central areas, it would be only around `2,000 on the outskirts,” observes Ram Reddy, chairman and managing director, Ram Ark Builders.
Reddy, who has residential projects near Bollaram railway station, feels that the upcoming Hyderabad Metro Rail will further enhance demand for residential spaces on the city’s outskirts. “Projects like MMTS and Hyderbad Metro Rail are a massive boost to the residential market on the outskirts as they considerably reduce the commuting time,” he adds.
People willing to invest on the outskirts of the city
Retail market, although faring well in central locations, faces challenges of high mortality rate
The upcoming metro rail will further improve the market