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SEZs, new airport, retail boom to trigger realty growth in Hyderabad
Posted by Srini Uppala | January 3, 2008 | 510 views
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Loading ...After a lull, it is going to be a real big opportunity for the real estate sector in the State Capital again.
Consider this. Of the 54 SEZs (special economic zones) notified in Andhra Pradesh, 39 are coming up in and around Hyderabad. The fact that 90 per cent of them would be in IT, ITeS biotech and pharma sectors shows the kind of spin-off demands on residential and commercial space.
Not to speak of other growth triggers such as the upcoming international airport, retail boom and the 162-km six-lane Outer Ring Road and several radial roads that would connect it.
“As against the supply of 3.5 million square feet of supply in 2006 commercial real estate, we forecast that the demand would be in the range of five million sq. ft a year for the next two years,” Mr V. Naga Maruthish, Director of V R Net Consulting Private Ltd, told Business Line.
V R Net has just completed an overview of the real-estate scenario in Hyderabad. Touted to be the first such effort by a local player, the report Reality-Insight has been done for Navayuga Infotech.
The boom in the retail sector too would play a significant role. Stating that all major retail brands set their eyes on the city, the report estimated the city would have 12-15 large-sized malls in the next three years. “Malls such as InOrbit Mall, DLF, IVRCL, Prestige Forum and IJM are expected to come up in 2009,” the report cited.
Residential space
One key change in the investments of residential properties would be – absence of speculators. “People who pump in their monies into this area as an investment option are shying away. Only real buyers are in the fray,” the report felt. Citing the announcements of high-end luxury residential projects, the report observed that the demand in this niche property, particularly nearer to the epicentre of economic activity, would continue to grow in the financial of 2008.
It is estimated that a whopping 88 million sq. ft of new residential space would be coming up by 2012.
It forecasts that there would be sale of about 12,000 units a year in the Grade-A property (deluxe apartments of two and three bedrooms, villas and row houses) and Grade-B property.
SOURCES:
Business Line
Topics: Real Estate |
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