After a grey period (2009-10) of scams, political turmoil and recession, Hyderabad’s real estate finally holds some promise.
By Leena Ghosh
With the launch of Facebook office in Hyderabad (Facebook’s first office in Asia) the realtors are looking forward to a better time in 2011. And this is not the only good news for Hyderabad realty sector. Private equity major 3i Group plc is reportedly investing around USD 111.51 million in Hyderabad based KMC Infratech Ltd; a subsidiary of KMC Constructions involved in BOT projects (built, operate and transfer) in the roads and highways sector. US-based Deloitte LLP, an audit, consulting, risk management and tax services company, is also planning to set up a university to train people with an estimated investment of about Rs 300 crore to Rs 400 crore in Hyderabad. The proposed university, which would come up in about 50 acres, will have a built-up space of about two-lakh sq ft and can accommodate over 10,000.
EXEC does a realty check and talks to them to get the true story.
Girish Mallpani, MD and CEO, MPM Hotels Ltd, said, “Hyderabad recently faced a lot of hurdles in the name of the Satyam scam and Telangana issues. But we are back into action. There is a positive movement regarding sale of property and multinationals have shown interest in the city. For example, the Facebook Group is expanding in Hyderabad. Buyers are now looking at investment options and the hotel occupancy has gone up as well. So we can safely say, Hyderabad is looking at positive growth and its people are putting their troubles behind them.”
Sunil Singh, DGM Manjeera, agreed. “There is moderate expansion in retail real estate market. The city is showing potential for growth. Facebook has opened in Hyderabad, which is proof to our brand expansion. The political scenario affected the business, but not to a great extent.”
A. Balajee Kumar, Regional owner and CEO of REMAX Andhra Pradesh “The market is picking up very fast and there have been a good growth in the transactions. Acceptance of ongoing political challenge and geographical condition has become a blessing in disguise in the city and city has turned to a buyer’s market. Buyers are picking up well, their properties from among a good inventory database of properties. There have been increased demand from NRI segment and people from nearby states like Madhya Pradesh, Maharashtra and Orissa are showing interest to buy in the city, in the big branded properties in the start up and secondary markets. I am quite bullish on the market and expect to do multiple times business than last year. ”
But experts warn against unwarranted optimism. While Mallpani indicated a positive movement in the realty market, he said the city needed to “absorb the oversupply in the market.” “Some projects that were put on hold because of the crisis have restarted. The oversupply has to meet the demand first. It’ll be a while before the realtors get to see an increase in real estate rates in the city,” he said.
Srinivas Rao, GM of AVC Housing said multinational investments in big budget projects would take some time. “Medium budget transactions (below 25 lakh) still take place. But investments that run in crores have been put on hold.”
While it might take the city to feel euphoric about it’s estate value, the real dream is not impossible to achieve, feel the experts. This, in itself, is Hyderabad’s miracle.