Northern And Southeastern Parts Of Hyderabad Emerging As New Growth Hubs

Hyderabad’s real estate market is poised for growth, driven by infrastructure development and investments. CREDAI Hyderabad President, V. Rajashekhar Reddy, shares insights on the current market scenario, growth potential, and challenges faced by the industry.

Tell us what is CREDAI all about?

CREDAI Hyderabad is a city chapter under CREDAI Telangana, which is part of the national confederation with 230 chapters and over 15,000 members. We work closely with the government to bring policy changes and address concerns of builders. Our role is to resolve issues, ensure transparency, and promote a Code of Conduct among builders. We also encourage RERA registration, maintaining transparency and accountability. Our ultimate goal is to deliver the best for consumers.

So how is the real estate market in Hyderabad right now?
The real estate market in Hyderabad has potential for the next 10-15 years, but currently, there’s some ambiguity in customer thought process. Despite this, the city is growing in all directions, with the Western part doing exceptionally well. The government needs to focus on developing the city in a 360-degree manner. The new government can prioritize implementation and connect with the people, which will help in the long run.

⁠The government is focusing on expanding connectivity to peripheral areas through RRR and proposed ORR metro. Will the real estate market shift to other areas, or will it continue to be driven by western Hyderabad?

We welcome new initiatives like the future city announcement, which may give potential to southeastern areas. However, developing such areas takes time, like Cyberabad which took over 20 years. The government should focus on present needs, leveraging existing infrastructure like ORR, and generating employment opportunities. There’s potential in North, East, and Southern parts, and we as an industry will support initiatives that create more opportunities.

⁠Why is that developers not focusing on building affordable apartments?

Land prices have gone up significantly, making it challenging for developers to build affordable apartments. However, with the government’s initiatives like RRR, more land availability is expected, and investments announced in Davos will open up new avenues and employment opportunities. This may lead to better affordability and spread the city beyond ORR, making land prices more manageable.

There are several cases of developers defaulting on their commitments, forcing RERA’s intervention. At CREDAI level, are you making any efforts to prevent such issues from happening to build customer trust?

Hyderabad builders are known for delivering quality products and adhering to timelines. While some delays may occur due to manpower shortages or unforeseen issues, it’s not intentional. CREDAI has a code of conduct that promotes transparency, and RERA registration is mandatory for our builders. We have seen that even during the pandemic, builders tried to deliver projects despite challenges. The issue lies in the complexity of high-rise projects, which require skilled manpower and multiple factors to come together. Builders do commit to timelines, but sometimes external factors like legal issues or material shortages can cause delays.

What precautions should buyers take before investing in a real estate project, and how common are project delays in Hyderabad?

Buyers must realise that if it’s a bigger project, some delays are inevitable. Builders plan multiple activities, and delays can happen, but rare incidents get highlighted in the media. In Hyderabad, such cases are minimal, and builders strive to deliver projects on time.

So do you see a real estate boom happening in Hyderabad? Which are the areas that are driving the growth?

Western Hyderabad has always driven growth, but the future lies in the northern and southeastern parts. The southeastern part has potential due to companies like Infosys, Tata as well as the upcoming Foxconn project. The area’s proximity to the airport and employment generation are added advantages. Focus on developing social infrastructure and basic amenities will support this growth.