After the bifurcation, political tension in the state has eased and realtors predict steady growth in the real estate sector in Hyderabad. To provide a clearer picture, M Vijay Sai, secretary general, Telangana Real Estate Developers Association (TREDA), speaks to Express about the growth potential, the challenges and why Hyderabad is at an advantage.
Q. How is the city shaping up as far as real estate is concerned?
A. The real estate sector is slowly gaining momentum and in the coming months, we are expecting it to grow further. The existing projects are already looking to expand and many people are looking to launch new projects.
Q. What are the biggest challenges that the industry currently faces?
A. Cost of construction is the biggest concern right now and we will ask the government for some concessions, such as payment of building permission fee in instalments. Right now, they are giving instalments only for the impact fee. We are asking the government to allow payment in instalments for the total amount, so that it will be beneficial for all builders.
Also, earlier we used to give permit for three years for multi-storeyed buildings. However, after GO no 168, this was extended to to five years. So we are requesting is to extend the same facility to private buildings without collecting any additional amount.
Q. What do you think about making NOC’s available online?
A. That is a good move. I believe this can be achieved in the future. We never believed that we can get receipts online and we never believed that we will see e-seva available online, so there is definitely a chance for NOC’s to be made online to make the process much quicker.
Q. What are the prospects of the ITIR corridor, given that the new defence & aerospace sector is coming up there?
A. If it is implemented correctly, it will change the dynamics of Hyderabad development.
Q. Though the existing companies are looking to expand, do you think new companies will also set up shop in the city?
A. Yes I certainly think so. This is because regional operations are very economical and reasonable in Hyderabad and that will encourage and attract more companies to establish themselves in the city.
Q. What makes brand Hyderabad sell?
A. Hyderabad has a very superior infrastructure and low selling prices. A lot of companies will be attracted to start their offices in Hyderabad because of their academic operations. Lease rentals are very low here compared to any other state in South India. We also have the best infrastructure facility.