With nearly an year gone since the formation of Telangana state, real estate developers in Hyderabad are confident that people have come out of the ‘wait and watch’ mode and are ready to invest in different parts of the city. In a free-wheeling chat with Express, M Narsaiah, chairman and managing director, Shanta Sriram Constructions, gives an overview on the real estate market in Hyderabad.
Excerpts:
What do you feel about the prospects of Hyd’s real estate sector in the upcoming quarters?
I feel the situation is very, very bright. Initially there was a shortage of projects, but now it has started picking up. I feel that the ‘wait and watch’ mood of the people is long gone and things have started improving tremendously. In fact, we don’t have products to sell this quarter, such is the demand. In the next one year, prices are certainly going to go up because as it is, the builders are operating without any margins, almost like cost-to-cost.
As a developer, what are the challenges that you face in the real estate industry today?
The burden of tax is lot more these days. Realtors are having to spend nearly 30 to 35 pc on direct and indirect taxes. Approvals is another concern as they take a long time. The government has taken positive initiatives, but it needs to be more proactive.
What do you think will be the impact of the Hyderabad Metro Rail on the city’s real estate market?
Massive. If you notice, areas like Kompally, Uppal and Secunderabad are already picking up very fast. Once the Hyderabad Metro Rail is ready, it will boost the market because prospective buyers today look to purchase houses which are very near to their workplace. But once the the metro rail comes, people would be willing to go another 10 to 15 km to purchase houses.
What is your take on Internet real estate marketing?
It’s a very good concept and one of the advantages is that it provides an insight to people who are looking to invest in Hyderabad from all over the world. Through online portals, people living outside the city can educate themselves about what to expect from Hyderabad. Almost 75 pc of our business is being done through Internet.