HYDERABAD: As we stand on the threshold of a new year, the real estate scenario in Hyderabad looks rosy. The government of the new state is going on the right track but the sector in the city has several challenges to surmount. Narotham Reddy, general manager (marketing & business development) of Cybercity Builders and Developers Pvt Ltd, tells Express about the sector’s scenario in the city in general and the fascinating prospects in Secunderabad. Here are excerpts:
How do you assess the real estate sector after bifurcation?
Now that the bifurcation dust has nearly settled down, the two chief ministers are trying to promote various sectors and attract investments. So there is a healthy competition between the two states. As regards Hyderabad, the government has taken some good steps such as abolition of VAT. The government is developing separate clusters for films, pharma, etc. It will also increase the retail, commercial and residential spaces.
What challenges lie ahead? In which areas is there a scope for improvement?
Within city limits there is always scope for development. For instance, in growing corridors like Gachibowli, Hafizpet and Miyapur, there is always potential for growth. The market in Uppal is also picking up, courtesy Raheja IT Park and other developments. The south and east of Hyderabad are the two areas where we are seeing substantial growth.
What about Secunderabad? Is location of Cantonment hampering its growth?
Yes. The areas abutting Karimnagar highway have not undergone much development though several pharma and other industries dot the corridor. Moreover, the area is home to an ICICI Bank establishment, educational institutions and several resorts. Yet, it has not led to much growth in real estate sector, the main reason being the Army base.
With Hitec City, Gachibowli and Kondapur almost occupied, should companies look elsewhere for office spaces?
It’s not yet a super-saturation stage with regard to office space in Hyderabad. The supply has not yet exceeded the demand. The absorption in this calendar year is quite high and is better than in other cities. But, yes, there is always need for new clusters of development. If the office space in Gachibowli is full, areas like Adibatla and Kokapet are ready to absorb. ITIR may also lead to emergence of new areas of development.
What needs to be done in the next few years to take the real estate industry forward?
We need to lure more investments not only in IT but also in other sectors including aerospace and automobile. The major strength of Hyderabad is its strong infrastructure. Once investments grow, it will trigger real estate boom.