Hyderabad is all set to become one of the world’s largest cities by 2035.
“Hyderabad will become one of the world’s largest cities by 2035 and real estate as we know it will boom and this is the answer to why someone should invest in Hyderabad,” said B Sunil Chandra Reddy, president, National Real Estate Development Council (NAREDCO), Telangana.
According to Oxford Economics, Hyderabad is the fourth fastest growing city.
“In FY-1, 2022 nearly 1 lakh IT jobs have been added in Hyderabad. Due to job creation, the need for both commercial and residential space will rise,” Reddy said.
Reddy also pointed out that nearly 12 million square yards of commercial space have been absorbed in Hyderabad post-Covid. “This amounts to 21% of all commercial land present in the eight metropolitan cities in India. Hyderabad’s real estate will boost and the next decade belongs to this city,” he added.
Effect of GST on Real Estate:
NAREDCO Secretary General Vijay Sai further pointed out that the rise in GST has put both the buyers and developers in a pickle. “Nearly 18-20% of the total cost of a particular property will need to be paid as tax by developers to the government. We are appealing to the government to reduce the tax slab to provide affordable housing,” he said.
Additionally, it was also pointed out that there has been a disruption in the supply chain due to the Russia-Ukraine war. “This has led to a rise in material and input costs. From aluminum to windows to copper, the prices have risen. There is at least 25-30% increase in the input costs for both residential and commercial establishments,” Vijay explained.
“Despite all this, housing in Hyderabad (when compared to other south Indian metropolitan cities like Chennai and Bangalore, continues to be affordable. The average selling price in central Hyderabad is Rs 4,500 per square yard,” Reddy said.
Effect of Government Order 111 on Real Estate
NAREDCO Telangana members said the scrapping of GO 111 has had no effect on the real estate market. “As per High Court rules, a new set of rules need to be given by an expert committee to expand the real estate areas at Osman Sagar and Himayat Sagar. Until the new rules come into force, there will be no developments there,” Vijay said.
NAREDCO Property Show 2022
NAREDCO members were speaking at the announcement of the 12th NAREDCO Telangana Property Show that is scheduled to be held from 23rd to 25th September at HITEX exhibition center, Hyderabad.
“The 12th edition of NAREDCO Telangana Property Show will showcase different properties to meet the requirements of varied customers. As we head towards the festive season, this is the right time for every prospective buyer to consider, plan and invest in a property of their choice, that could not only benefit them in the short-term but in the long-term as well,” Reddy said.