With the real estate market in Hyderabad witnessing a steady growth in 2015, realtors feel that the boom is just around the corner. As we approach the second quarter, Naveen Nandwani, executive director, Cushman and Wakefield, speaks to Express about the real estate scenario in Hyderabad.
Excerpts:
What are the real estate prospects in Hyderabad in 2015?
Hyderabad real estate market was into a stagnant phase for a significant period due to uncertainity over state bifurcation. Though the market witnessed some recovery post-bifurcation, it was not as anticipated. The developers and investors are still adopting a cautious approach. Having said that, all factors for growth prospects of Hyderabad are well in place like low cost of living as compared to other Indian metros, good quality of life, rapid pace of infrastructure development and a proactive government. We believe that Hyderabad would gain the requisite momentum by the second half of 2015.
The residential sector in the city has been struggling for the last five years, what do you think needs to be done to revive it?
There was lack of clarity in the separate statehood of Telangana before bifurcation. Hence end-users and investors preferred to be the fence sitters. There were doubts amongst stakeholders from AP whether to invest in Hyderabad or their home town. However, this loss was being compensated by the increased demand from buyers from other states. Hyderabad has also witnessed soft-launches of a number of residential projects by some national developers as well. On a separate note, Hyderabad’s commercial sector has registered a remarkable growth in 2014. The commercial office space witnessed gross absorption of nearly 6 mn sq ft, which is highest in the previous 4-5 years. The proportional conversion into residential sales is impending and likely to start happening in later part of this year.
How can we attract more investors to set up new launches in Hyderabad?
The government should play a more proactive role and promote single window clearance system for real estate and construction projects in a more aggressive manner which will curtail the project implementation time. Development of common infrastructure like ORR, metro rail, an east-west four-lane corridor (skyway) between Vanasthalipuram and Ramachandrapuram and a similar north and south corridor shall enhance connectivity and augment the real estate prospects of the city.
What are the challenges that lie ahead to enhance the real estate sector in the city?
With Hyderabad missing the bandwagon of real estate boom post the sub-prime crisis, it has to match up with other comparable cities. The major challenge would be to restore the brand image of Hyderabad city and government will play a vital role in achieving the same.