HYDERABAD: Better times are ahead for the city’s real estate sector. At least, so it seems from the renewed interest among Non-Resident Indians (NRIs) in parking their moolah in upcoming ventures in ‘hi-tech’ Hyderabad. If some among them are genuine home-buyers, others are investors who have been sitting pretty on their money until now, say market analysts.
According to rough estimates, beginning January this year, sales within this community has increased significantly – between 25% and 35% – and is likely to witness a further northward move over the next few months.
“June-July is vacation time in places like Dubai. It is during this time that people visit the city and scout for properties. We are already seeing a rise in enquiries from there and are hoping that many of them will convert into real deals when the buyers come to Hyderabad,” said a local property consultant, sharing how several developers have of late rolled out multiple roadshows in the US to attract NRIs to their projects.
Reason for this sudden rush of activity? The failure of the Vijayawada-Amravati belt, suggest experts. They explain that the ‘unhealthy speculation’ about land development in Andhra Pradesh and unrealistic prices prevailing in the capital region have tilted NRIs investors – a chunk are from the Andhra region – in favour of Hyderabad again.
“This, coupled with the spiralling growth of the IT sector along the western corridor, has convinced these buyers about Hyderabad being the best choice. So, while the investment from NRIs was a low 3% to 4% up to June 2015, it’s nearly 35% now,” suggested DS Prasad, director, Aparna Constructions.
The fact that properties in Hyderabad continue to be available at an affordable rate has also played a role in the revival of ‘onsite’ buyers. “Unlike in Amaravati and Vijayawada, the prices here continue to be very attractive. Even today a 2BHK can be bought for Rs 40 lakh while a 3 BHK is priced at a modest Rs 60 lakh at prime locations like Hi-Tec City and beyond. Also, in stark contrast to the AP belts, these places are developed and have necessary infrastructure,” said Ashwin Rao, director, Manbhum Constructions.