The property market in Hyderabad would gain from a strong leadership in the state that can rebuild the brand image of the city, says a city-based developer.
“There are plenty of lands available in the city, and landlords are also coming forward to sell or to go for joint development. But we cannot lock significant money in the land when there is uncertainty about when we would sell the flats,” said Anand Reddy, executive director, PBEL Property Development.
The company’s 1,800-apartment project has been calibrated to the prevailing market conditions, with the first phase of about 400 apartments being built in two years. It has delivered 306 apartments, and plans to build the second phase in another two years. For the full project, however, giving a timeline would be difficult, he said.
According to Reddy, the market can absorb 300 flats per month, but it is not yet ready for luxury products and developing the right product is the challenge.
The company has targeted its apartments specifically at the IT professionals.
A majority of the buyers were from outside the state, and the demand for property in Hyderabad is strongly linked to the perceptions of its’'brand’.
“There are enquiries from IT companies for a long-term lease of the apartments rather than outright purchase. These are meant for their professionals who stay in the city for only about three to four months before moving out,” Reddy said.
He added that though the IT companies are serious about the proposal, PBEL would prefer to sell them. “For a lease, we would get about Rs 15,000 per month as rent, whereas a sale would bring in Rs 35- 40 lakh,” he said.
The rest of its first phase apartments would be sold in the next two-three months, he said. The company’s total land holding for the residential project is 25 acres, which it bought for Rs 135 crore.
The Confederation of Real Estate Developers’ Associations of India is working on a code of conduct for developers with an emphasis on ensuring the project deadlines are met. The proposal is at an early stage, according to Reddy.