Following an episode of slow growth in the IT sector, poor hikes and the scare created by demolitions by government agency HYDRAA, real-estate developers in Hyderabad now see green shoots. They say that the worst is over and that the sector is poised for growth.
“The slow growth in the information technology sector, poor hiring by the IT companies and increase in interest rates have impacted growth. Those employed are also not taking purchase decisions because the hikes they get are not high enough and there is no job guarantee. Prospective buyers have deferred their purchase decisions,” said Vijaya Sai Meka, president of NAREDCO (National Real Estate Development Council – Telangana Chapter). The association also felt that the cost of materials has surged, resulting in a sharp increase in prices.
HYDRAA demolitions
The association admits that demolitions by HYDRAA (Hyderabad Disaster Response and Asset Protection Agency) did impact investor sentiment. “But Chief Minister A Revanth Reddy’s assurance that the government would not demolish any structure with proper permissions has come in handy,” he said.
“Even those who bought properties ten years ago were beginning to worry in the backdrop of demolitions,” he said. Vijaya Sai said the members of the association followed all rules and regulations. “No member takes the risk (of doing a project without permission). We take all permissions before launching a project because it involves a lot of stakeholders in the ecosystem,” he added.
He, however, admitted that some developers might have gone ahead with panchayat (village-level) permissions. He said the upcoming Regional Ring Road (RRR), which was three times bigger than the Outer Ring Road, would boost the real estate sector. The Musi River Front project would be an added attraction.
property show
With a view to building confidence, the association is holding a three-day property show beginning October 25. The 14th edition of the show will showcase over 100 projects, including residential, office commercial and retail commercial projects.
“It will be a one-stop destination for buyers and sellers to interact and explore options of a wide range of properties. It will be held in one lakh sq ft of space,” he said.