HYDERABAD: The spiraling rate of the dollar coupled with modest pricing is likely to attract NRI investment to the city's real estate sector in the near future, said representatives from the industry on Thursday.
In an attempt to allay fears of consumers, members of the Confederation of Real Estate Developers Association of India (CREDAI-AP Chapter), insisted that the market condition had improved post 2012 and is currently on the path to a steady recovery.
"It is true that whenever there has been an unrest owing to the Telangana issue, the industry has slipped into a state of turmoil for a about two to three weeks. But that dip in business has always been temporary. Now that we have a clear picture about the fate of the state in general and the city in particular, things are only likely to look up," said C Sekhar Reddy, national president of the organization.
Reddy claimed that in the last six months, the sector had already started its transition from being a buyer's market to a seller's market. "There are projects that have been launched at a higher price (of over Rs 3,000 per sft) than the earlier prevalent rate of Rs 2,500 (average) in the last few weeks," he added.
However, despite this marginal jump, developers said that property values in the city are still at "rock bottom" (in comparison to other metros in India) and therefore more affordable for consumers. Given Hyderabad's "world-class" infrastructure and other amenities, they said that the local market was the best investment destination at present. "The average price is between Rs 1,700 per sft (only in the outskirts) and Rs 2,500-Rs 3,000 per sft. Clearly, buying property here now would be a wise decision," said S Ram Reddy, the newly appointed president of CREDAI-AP.
Chalking out a two-year roadmap for the confederation that comprises 1,300 members from across the state, its office bearers said that the body would work towards initiating the process of procuring online building permissions, reducing cost of construction through bulk material purchases, enhancing the pool of skilled labourers and compiling data on the availability of built-up space in the city.
Reiterating that the slump in the market, post 2008, was not solely rooted in the local political crisis but the global recession as well, members said that the aforementioned issues have, by and large, faded out and that the real estate prices in Hyderabad are now set for a northward ride.