Hyderabad realty market looking up: JLL

The investor perceptions of Hyderabad's real estate market are set to turn positive this year, on the back of strong pre-leasing and leasing of space by IT firms and Ascendas Trust’s planned acquisition of five buildings in the city.

According to the latest report from Jones Lang LaSalle, a real estate consultancy, the growth in the IT sector and new infrastructure projects such as the Hyderabad Metro are expected to give a push to housing and retail sector investments in the city.

“Land market in Hyderabad is slowly rebounding with increase in enquiries for land, and land allotment by development authorities to companies,” it said.

 

The report said the market had remained still in the last few years because of the economic recession and relatively uncertain political conditions immediately following it. The period, which saw a correction in valuations to an extent of 30-35 per cent, was a short-term phenomenon and investor sentiments would bounce back this year, it said.

According to the report, though a few greenfield projects have remained stalled, many residential projects which had seen PE investments are witnessing good sales. Hyderabad is still much more affordable, with property prices in prime precincts of the city being relatively less than in other cities.

The government’s plan to move industries from the city to the outskirts opens up opportunities for investors to acquire industrial land at good valuations for use in residential projects, the report said.

While the IT sector spreads to new areas around the city such as Uppal, Pocharam, Bachupally, Jawaharnagar and Shamshabad, other industries are also setting up base in the city. New investments are expected in pharma and biotech, manufacturing special economic zones, and research and education.