IT/ITES Hub Influences Real Estate In Hyderabad
Hyderabad: New projects launched by eminent builders along the IT and ITES corridor of Hi-Tec City are, have received a positive response throughout the last two-quarters. This indicates that cautious optimism is prevalent in the markets. The market is anticipated to stay stable, with existing stock witnessing an improved off-take across micro markets vis-à-vis the previous years.
The markets should be consolidated with nominal appreciation ranging from 5 percent to 7 percent year on year over a five year horizon. The growth of the end-user segment in the city would further be propelled by its fundamental strengths comprising of good infrastructure, affordability and presence of the IT/ITES sector.
While other megapolitan cities of South India such as Chennai and Bangalore bear witness to a surge in real estate prices; Hyderabad’s in a consolidation phase with properties available at attractive valuations. However, the property valuations are yet to regain their prime values.
Hyderabad’s peripheral regions contain humongous chunks of developable land, offered at affordable prices. The development of the Outer Ring Road (ORR), The Metro Rail and the prevailing MMTS network combine to improve connectivity and reduce travel time from and to various parts of the city.
Inclusive growth is yet to be witnessed by the regions surrounded by the 158 kilometer long Nehru Outer Ring Road. A healthy mix of commercial and residential development along this region would aid in the development of this belt as a passageway for future growth. Similarly the presence of land banks surrounding the International Airport at Shamshabad and along the eastern corridor indicate the prospects for the growth of the city over the next decade.
With ready-to-move inventory finding takers an improvement in the off-take of residential stock was indicated by the markets during the closing year of 2012.
The North-Western and Western IT/ITES corridor has been showing signs of recovery. With new projects launched by eminent builders in this belt have been receiving the desired response. This belt is expected to firm up over the period of the next twelve months.
Regions or localities with easy accessibility or within close proximity of the IT/ITES corridor of Hi-Tec City area are gaining appreciation. Gachibowli is witnessing development of products within the price-band of Rs. 3,000 to Rs. 4,000 per square feet, relying upon the builder, location and specifications.
The higher mid-segment is developing in the surrounding region of Nanakramguda. Projects are in the price range of Rs. 3,500 to Rs. 4,500 per square feet once again depending upon the builder, location and specifications. A gradual off-take of inventory in projects nearing completion is expected over the coming months.
Along the western corridor, APPA Junction, Narsingi and Kismatpur are emerging as alternate residential destinations. The localities proximity to ORR and the IT/ITES hub of Gachibowli has translated into a spurt of residential development. Infusion of fresh supply over a twelve-month horizon is expected. Mid-segment properties at Narsingi and APPA Junction are in the price range of Rs. 2,600 to Rs. 3,300 per square feet.
Due to the presence of sufficient supply of housing in the surrounding micro markets, closer to the IT/ITES hub of Gachibowli, the sale of these projects in the mid-segment are growing at a sluggish rate. Villa projects are expected to witness a relatively better off-take due to limited supply in the surrounding micro markets.
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this shows demand of real estate in hyderabad