In a positive development for Hyderabad real estate, which has been facing sluggishness for the past several years, the residential launches in the city have increased by 30% year-on-year since the past three years mainly driven by improving infrastructure in the city.
Analysts say that it is a positive development for Hyderabad real estate. “Policy support along with infrastructural developments like the Hyderabad Metro Rail, strategic road development and elevated corridors etc., increased the residential launches by 30% y-o-y since 2014,” said Sandip Patnaik, Managing Director, JLL, Hyderabad,
JLL’s report on Telangana Real Estate -“The new face of India’s growth Story” says that despite demonetisation, the Goods and Services tax (GST) and Real Estate Regulation Act (RERA) acted as a brake on the sale of residential units across the country, Hyderabad saw an increase in launches.
Real estate and construction sector together contributes 13% of Telangana’s GSDP. Over the last three years, the real estate sector especially percentage of growth in residential, commercial, retail and office space had been significant.
Office space absorption set new records and was at 6.5 million sq ft in 2016. In the major IT hub the vacancy rate was significantly reduced to 5-7% and office rents increased by 23%.
P Ravinder Rao, President, TREDA said, “The Telangana government has undertaken few exemplary steps in order to rekindle the growth phase in the state. In the coming years, 227.84 billion will be spent on infrastructure development to foster economic growth in the state and this will bring positivity to the real estate mar.