With some clarity emerging on the completion of the much-delayed metro rail project, the real estate sector in the City is all set to get a boost as well. Although the project will take five years to be completed, the metro rail will cover 71.16 km consisting of 66 stations, making it the biggest infrastructure project under the public-private partnership in the country.
“There will definitely be a positive impact on the real estate sector. Especially, in the residential segment. Houses within a 5km radius from a metro station will fetch higher property and rental values than houses that are located far from the stations. There will be an appreciation of 25-30 per cent in capital and rental values once the metro services commence,” said PV Ravindra Kumar, CEO, Vasathi Housing.
The growing infrastructure in the City will be adding value to the real estate sector. Setting aside the political turmoil, the City’s real estate has many things to its credit. Hyderabad is every investor’s favourite hub, not only for quality infrastructure but also for added attractions like SEZs, industrial parks, IT campuses, and a new international airport. The growth of the IT industry has increased the demand for both office and residential spaces resulting in an increase in demand when compared to supply. This development in the industrial sector is driving the growth of the real estate market, he added.
However, issues like depleting ground water levels and burgeoning traffic have to be sorted out for the City to grow further. Many developers are now looking for alternatives by opting for water recycling. However, the government has to hasten the process of bringing in water from Krishna and Godavari.
Though there is a slowdown in the global economy, the demand for the housing sector will remain strong in the country. But the sector as a whole in the country will not witness the kind of price appreciation it has seen in the last couple of years. The government’s recent move to increase service tax rate from 10 per cent to 12 percent is likely to the developers’ cost of production, who are already reeling under high input costs. This increased burden will be passed on to end users, said Kumar.
Property costs have been increasing due to increase in the input costs in recent times. The other places in the State have seen a definite growth but in the City, the prices have been stable for the last six months. In the near future however, there will be a definite growth, he said.
Talking about RBI rate cuts, he said, the decrease in housing interest rates will definitely ease the debt servicing burden of customers and have a positive impact on sales. There will be a definite growth in absorption rate, especially in the affordable housing segment this year.
Buyers’ check list
- Certified copies of the title deeds
- Encumbrance certificate
- Possession certificate
- Deal agreement
- Proper approvals
- Plans and layouts
- Built-up area and carpet area
- Penalty for delays
- Early exit charges
- Tax liabilities
- Preferential location charges
- Check how the undivided share of land (UDS) has been apportioned among buyers and conditions regarding the same