Look East policy good initiative for realty
Efforts should be made to spread Hyd in all directions for traffic decongestion: HRA's Shailender Singh
Land prices have skyrocketed in Hyderabad in the past two years or so. How long this trend will continue?
Now, land prices are stabilising. The jump that has taken place in the last one year is not happening now. The land which was costing Rs 1.5 lakh per yard became Rs 2 lakh and then Rs 2.25 lakh per yard. But it is very unlikely that it will become Rs 4 lakh.
That will not happen. Also, there is a direct relation between per sft cost of apartments and the land cost. The per sft cost of apartments have not gone up much.
However, there has been a gradual rise. Furthermore, due to Outer Ring Road (ORR), land availability has increased. People look at travel time, not the distance.
Travel time to many areas has come down due to ORR. However, there is no social infrastructure in places like Shankerpally where prices have gone up.
It will take some time for them to get social infrastructure like public transport, schools, restaurants and shopping destinations.
Housing construction will pick up once such infrastructure comes up.
The Telangana government has come up with 'Look East' policy to encourage expansion of Hyderabad towards East which includes areas like Uppal. Will this initiative be successful?
It is an excellent move. The maximum workforce comes from that side. That's reason why we see more traffic jams in Begumpet, Secunderabad. Areas like Uppal already have talent pool.
Unless the government promotes city development towards East, North and South, it is very difficult to decongest the city and its traffic. Otherwise, there will be more pressure on the West which comprises Hi-tech City.
The western part of the city will become so congested that it will become unlivable. However, city will expand in all directions only when the government promotes all areas and offers requisite sops.
I strongly believe the government's intervention is required to promote growth of Hyderabad in all directions.
But it is said that companies are not keen on setting up their offices in East. Many companies seem to be preferring Hi-tech City and Nanakramguda…
It will not happen overnight. But eventually the government's efforts will yield good results. It will take time though. The fact of the matter is that no one wanted to come to Madhapur initially.
That was the case with Financial District, Kokapet, Adibatla, etc. Today, the government announced 'Look East' policy. That doesn't mean that eastern part of Hyderabad will become business hub in a year.
Companies which are sensitive to price and seek cheaper lands will go there. Some Indian companies may also go there. NSL is already there.
So is Infosys. Housing is extremely affordable in Uppal area which has a good social infrastructure as well. The only thing is we will have to market it well.
What was the price appreciation in Hyderabad in the last one year or so?
For instance, commercial rentals which were priced at Rs 50 sft have gone up to Rs 65. Some A grade office space is getting over Rs 70 per sft as rent.
Retail space is now costing anywhere between Rs 80 to Rs 200 per sft.
When it comes to residential units, if something was launched two years back at Rs 4,000 per sft, it is available at Rs 5,500 per sft. There has been gradual increase in prices, which is sustainable.
How long the real estate growth will continue?
The real estate growth in Hyderabad will continue for next five years. Hyderabad and Amaravati, the new capital of Andhra Pradesh, will compliment each other.
How the luxury real estate is doing in Hyderabad?
It is doing extremely well, especially villas' segment. However, the project should be in right location. If someone builds villas amid commercial buildings, that kills the luxury quotient.
Luxury projects in nice residential areas are doing well. There are few pockets in Kokapet, Narsingi and APPA Junction which are ideal locations for luxury projects.
Prices range from Rs 6,000 to Rs 13,000 per sft.