Hyderabad: Despite the pandemic impact on real estate pan-India, Hyderabad real estate is ready to take off due to its inherent and fundamental strengths. Hyderabad will remain among the top three real estate markets pan-India, says an expert.
The recently introduced TS-bPASS initiative of the Telangana government will act as a further boost and such a comprehensive plan has not been rolled out by any city in the country. Hyderabad has set such examples in the past several years, which will keep the city ahead of other cities.
Sharing the current scenario and strengths of the city, Sesha Sai, MD, Hyderabad, Savills India, told Telangana Today, “Hyderabad remains a very good market for residential buyers. Developers will see faster recovery in the city that will aid them to re-strategise their expansion plans on where to invest and when.”
On the co-working space front, where Hyderabad has seen a lot of activity from both regional players and national companies, he said, though other cities such as Bengaluru were ahead of the curve when co-working began in Hyderabad, several national companies have forayed into Hyderabad and expanded their presence. The segment remains an attractive proposition in the medium-term for the city’s realty and its share within the office space is set to grow.
“While large corporates need growth, they also look for flexibility in their operations. They are putting together their Capex plans accordingly. These companies are looking at distributed hubs for workspace throughout the city. There is an increased demand for co-working and the enquiries are up for managed workspaces,” he added.
Hyderabad which has attracted large e-commerce companies such as Amazon to establish fulfilment centres in the last few years will see continued growth as the city is strengthening itself as the health and wellness hub in the country.
Telangana’s Look East Policy which aims to encourage real estate development in the eastern side of the city will ensure equitable growth as the government is keen to incentivise the investors. Connectivity, social infrastructure and talent availability can drive the entire ecosystem of the city. Sai noted that it may take a few years to show tangible progress the way other cities such as Navi Mumbai, Bengaluru and Chennai have shown.
National outlook
Sai added, “Nationally, due to the pandemic outbreak, there was an impact on construction activity in the initial two months and later on construction resumed at most of the sites. There is a gradual recovery in the construction works now.”
In terms of retail development, Sai observes, there will be some short-term impact on the retail sector, but high-street retail will continue to happen, followed by new mall development. Retail has become an integral part of today’s lifestyle and once the social distancing concerns subside, there will be an uptick. By the end of 2021, global funds will actively invest in the retail sector, as the asset recovery begins.
On the office space front, corporates looking to take new offices have been following a wait-and-watch approach, considering the health and safety of employees. Startups are looking at either downsizing or exploring other economical alternatives. Almost 70-80 per cent of the office occupants are sticking to places where they are and not immediately looking for new space. Market concerns will substantially reduce once the vaccines are available, he noted.
