[ecis2016.org] With the IT sector going through turbulent times, we examine the impact that it will have on real estate markets like Hyderabad, which rely significantly on demand from the tech workforce
Recently, there have been numerous reports that IT companies are laying off employees. Nevertheless, the real estate market in Hyderabad is expected to witness good buyer demand, despite sluggishness in the IT sector, which is the major job creator.
You are reading: Despite IT layoffs, Hyderabad’s property market to see strong demand
Although the current economic scenario may impact Hyderabad’s realty market, it will be a temporary phenomenon, insists Ashish R Puravankara, managing director, Puravankara Limited. “Moreover, the state’s economy does not solely depend on one segment. The advent of the start-up culture and the growing retail industry, have opened up new job avenues. Consequently, these factors will sustain the growth of the real estate sector, even if there is a slack in the IT sector,” he explains.
Industries that drive demand in Hyderabad’s property market
Experts point out that occupiers belonging to the banking, financial services and insurance (BFSI), engineering, manufacturing, aerospace and pharma sectors, have closed several large-sized deals in Hyderabad. The job opportunities created by these corporates and the influx of population, will boost the residential demand in Hyderabad. Other industries that support the demand for real estate, include retail, e-commerce, hospitality, etc.
“Industries like education, tourism and healthcare, also play a role in the process of choosing a home. For example, the presence of good schools and colleges, can encourage parents to shift to the locality, for the sake of their children. Similarly, a healthy tourism industry, can give rise to hotels and smaller guest houses across the city,” suggests Snehal Mantri, director HR, marketing, Mantri Developers Pvt Ltd.
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Promising locations in Hyderabad
Housing is relatively affordable in Hyderabad, compared to other metros, points out Nibhrant Shah, founder and CEO, Isprava. In the past, land price trends in Hyderabad remained stable due to the political uncertainty. “However, with political stability and the creation of the new state of Telangana, Hyderabad can now expect large investments in its property market in the near future. Places like Srisailam Highway, located in the southern part of Hyderabad, IT-oriented areas like HITEC City, Gachibowli, Manikonda and Kukatpally, are bustling with real estate activity,” adds Shah. West Hyderabad holds immense real estate potential, due its connectivity to the rest of the city, along with the proximity to various social and civic amenities.
Growth prospects of Hyderabad’s residential realty market
Mantri cites several developments that she says augur well, for the growth of the residential and commercial real estate market in Hyderabad:
- “The government has taken several pro-active steps, to attract major international companies to Hyderabad, like improving the ease of doing business, creating better connectivity across the city through the SRDP, metro, MMTS, etc., and setting up various infrastructure facilities. The introduction of TS-IPASS, ICT policy and life sciences policy, have also boosted growth.
- Creation of the pharma city, aerospace SEZ, financial district and bio-parks, apart from providing opportunities to start-up companies and incubators, will act as strong drivers for growth.
- The availability of ample human resources, including migrants, will cater to the industries’ demands and create demand for housing.
- Hyderabad also has huge tracts of lands alongside the ORR and IT corridors that can boost horizontal development and cater to industries, as well as housing.”
Check out properties for sale in Hyderabad
Ultimately, while the recent slowdown in the IT sector could have an impact, other supporting factors will continue to ensure stability for the real estate sector in Hyderabad.
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