In FY 2009, Hyderabad has seen significant investments into the Residential Real Estate Market from local players, national and international realty players across various segments of the market including luxury, affordable and low cost housing. Leading developers in the city have gone slow on their projects and have prioritized on a few projects due to tight liquidity and working capital issues.
Hyderabad Real Estate industry has started showing the signs of recovery. Effect of recovery will be shown in coming quarter. Launching of new projects at low interest rates is the main reason behind the increase of sales inquiries. Specially, the term ‘affordable housing’ is attracting middle class families to fulfill their dreams. After the huge gap of about one and half year, Real Estate Market has stepped towards recovery. Even foreign direct investments have reduced. Real Estate market is getting its position back in market. Various banks are providing loans for housing sector. With the reduction in interest rates, banks are adding on to the list of names to their happy customer list.
Most local Builders in Hyderabad use the JV route to build projects, while large local builders and national players buy land and build projects. In Hyderabad, builders presently do not have any significant unsold inventory of completed projects. However, many of the projects which lie unsold are projects under execution and are likely to be delivered in the next two years or projects which have been inaugurated and are still under the foundation stage.
An analysis of Hyderabad Real Estate data reveals that property prices have declined significantly in West Zone in the period. Similarly the South Zone and Central Zone have declined marginally, while North Zone has shown marginal appreciation, the Other zone (Shamshabad Zone) has recorded significant appreciation on account of the opening of new airport.
Hyderabad Real Estate market is potential with various property investment opportunities. Builders and developers in India have marked Hyderabad as a major real estate ground with some of their most ambitious residential and commercial projects planned for the city of Pearls. The Hyderabad Real Estate Market is still showing an upsurge on the upcoming housing, retail or commercial projects of the various housing companies and also the Builders in Hyderabad.
As per the reports of Jones Lang LaSalle, 65% of companies still have a growth focus in the Asia Pacific region. As per the Associated Chambers of Commerce and Industry (Assocham), Hyderabad Real Estate, Bangalore realty sector as well as Chennai received 70 per cent of the total private infrastructure investment.
Diversified equity mutual funds are betting big on realty including Hyderabad Real Estate, The construction segment has shown the highest growth in exposure in value terms in May spurting 95.53% to Rs 7565.76 crore.
Construction has now emerged as one of the most favored sectors for mutual funds and now ranks behind refinery and banking stocks in overall exposure. Realty companies have been able to raise money through QIPs and stake sale. Their financial position has changed and leverage has now come down.
