In the wake of recent challenges, including a slowdown in the IT sector and the unsettling impact of demolitions by the Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), real estate developers in Hyderabad are beginning to see signs of recovery. As confidence is gradually restored among investors, industry stakeholders believe the worst may be behind them, paving the way for renewed growth in the sector.
The president of NAREDCO (National Real Estate Development Council – Telangana Chapter) noted that the sluggishness in IT job growth, combined with inadequate salary hikes and rising interest rates, had significantly affected buyer sentiment. Many potential homebuyers have opted to postpone their purchasing decisions, apprehensive due to the uncertainty surrounding job security and insufficient salary increases. The rising costs of construction materials have further exacerbated the situation, pushing property prices up and making it increasingly challenging for buyers to enter the market.
However, recent assurances from Chief Minister that buildings with proper approvals will not face demolition have begun to instil confidence among investors. Concerns over potential property loss have plagued buyers, even those who made investments a decade ago. Industry experts affirm that adherence to regulations and obtaining necessary permissions is standard practice among developers, as they seek to protect the interests of all stakeholders involved. While some developers may have opted for panchayat-level permissions, most are committed to ensuring compliance with all legal frameworks to foster a stable environment for investment.
To further bolster investor confidence, NAREDCO is organising a three-day property show starting October 25, showcasing over 100 projects, including residential, office, and retail commercial properties. Spanning an impressive one lakh square feet, the event aims to serve as a comprehensive platform for buyers and sellers to explore a diverse range of options. Additionally, significant infrastructure projects like the upcoming Regional Ring Road and the Musi River Front development are expected to enhance the attractiveness of Hyderabad’s real estate market, making it a more appealing option for future investments. The overall sentiment reflects a shift towards optimism as developers anticipate a robust recovery and growth in the sector.
