Now Pune beating Hyderabad in the Realty Race
Pune’s impressive IT growth, affordable property prices and stable political atmosphere pulling investors to its shores. In fact market analysts from the city say that all corporate firms on expansion mode are now vying for space in Pune as against Hyderabad. Also spelling doom for the once booming sector are cash-rich investors and developers from outside the state who are fast dropping Hyderabad from their radar due to frequent disruptions.
One among them is a Dubai-based group that was expected to invest a whopping Rs 100 crore in the local market this year. The firm has now backtracked on its decision, sources said. While it remains to be seen if this big investor too heads for Pune, realtors here say that they are indeed losing a lot of business to the tier-II city, which was once way behind it in the real estate market. With Telangana ‘T’ agitations erupting in the city yet again, investors keen on putting their money on property here are now turning to the Maratha land in the hope of better returns. And it’s not the commercial market alone that has taken a beating. Even the residential segment is down in the dumps, say industry analysts.
From being among the top six metro cities in India not too long ago, Hyderabad has almost dropped to the level of tier -III towns now. “If the prices here were once compared to cities like Chennai and Bangalore, there are now compared to cities like Baroda. There has been no rise in price for over four years,” said real estate consultant B V P Raju of Ghar4U adding how the recent troubles have negatively impacted the sentiment of builders here.
Home-grown firms apart, even `outstation’ developers seem to be feeling the `T’ jitters. Terming the current state of realty in Hyderabad as “most unfortunate”, these builders say that they would have to give their future projects in the city a second thought if the political crisis is not addressed. “We will definitely fulfil our commitments made to clients in Hyderabad. But whether we would continue here post the completion of our current ventures, is now debatable,” said a senior executive of a leading Bangalore-based construction firm with a significant presence in the city.
Though some like Mantri Developers, also from Bangalore, are still optimistic because of the recent spurt in recruitments in the local IT industry, they do agree that a decision on the Telangana issue should be taken at the earliest. “It will only help in stabilizing the market as nobody enjoys uncertainty. But, that does not mean we are withdrawing from Hyderabad anytime soon. Our ventures here will go on as planned,” said Sushil Mantri, chairman and managing director of the firm.
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