Reforms Need To Be Introduced To Boost Hyderabad Realty Sector By Expert Author Vinay Kumar
Properties in Hyderabad have stared to show appreciation in the last few months. Real estate Hyderabad was expected to do well after the bifurcation the state but the things in the realty sector did not move upto the expectations. Hyderabad real estate also saw lack of interest from builders as they were not wiling to invest in a new projects till the previous inventories were sold. Real estate in Hyderabad has immense potential but still it has not been able to match up its potential due to lax in policies. Although many reforms such as single window clearance were introduced. Not much translated on the ground.
The Hyderabad real estate sector had expected to receive sops to develop affordable housing properties in Hyderabad. The joint capital is witnessing rapidly growing urban population, the state government needs to allocate funds for development of satellite towns such as Greater Hyderabad. To improve things in real estate Hyderabad policy reforms that improve approval time lines are also needed. Reforms such as elimination of discretionary powers in the hands of the officials (leading to corruption), single window clearance, will help improve delivery and lower holding costs for the real estate in Hyderabad.
Late approvals, rising cost of raw material and labour has also damped the spirit of both buyers as well as builders as there is a delay in property delivery. Also there is a lack of investment segment in the region. Most of buyers of properties in Hyderabad are end users and not investors. Government needs to take concrete steps to make the Hyderabad real estate sector investor friendly. This can be done if the government introduces reforms that boost the real estate in Hyderabad. Initially when KCR led Telengana government came to power, the Chief minister had made a lot of announcements in a bid to improve the overall sentiment of real estate Hyderabad. But, now the sentiment has died down as the reforms have not translated into faster property delivery and the ground situation remains more or less the same. Both buyers and builders are currently sitting low waiting for some sops to be announced. After the formation of the Telengana state only some localities such as Whitefield, Madhapur, Madinaguda, Jubilee Hills, Gachibowli, Banjara hills, Hi-Tech City, etc. have shown considerable appreciation. Rest of the city has just given a single digit appreciation. If reforms are introduced things can be paced up; and the city’s realty sector might also see rapid escalation of prices.