Hyderabad: In spite of the real estate prospects looking brighter post-bifurcation, there is still an air of skepticism among several people in the industry, who feel that the time has arrived for the government to step up and translate words into action. In a free-wheeling chat with Express, Veera Babu, office head, Hyderabad, Cushman & Wakefied, provides a closer insight into the larger issues at hand.
What are the real estate prospects in Hyderabad in the coming future?
It is too early to assess from the overall market perspective. Currently, numbers show that we haven’t seen immediate growth. Companies are looking to optimise and consolidate rather than expansion. Certain markets in India have picked up but we are yet to see that happen in Hyderabad. It has been four years and we haven’t seen any new clients come to Hyderabad. To get to the next level of growth, we need a new set of clients coming to Hyderabad at the earliest.
Which part of the city is most stable?
The city’s western corridor that houses the IT industry - stretching along Hi-Tech-Madhapur-Gachibowli, etc is picking up. This is predominantly because of the proximity to the job market and secondly, because of the infrastructure which is readily available. We don’t have to worry about what happens if a new government comes in and they don’t do any infrastructure related projects. You will still be able to sustain for the next four to five years. From that perspective, western quadrant is always superior compared to the other markets in Hyderabad.
What about the North of Hyderabad? Do you think this part of the city is lagging behind in terms of growth?
Yes and this is purely because of connectivity issue. New companies want to be closer to the talent pool availability and most of the talent pool wants to live in the Western corridor. Land is another issue. There’s no land available in areas like Uppal, except for industrial area which is converted into being useable for other purposes. However, with Metro coming up, areas in North of Hyderabad may pick up.
What is the most major challenge which the city faces?
Power is the major issue. Most of the companies are spending heavily on power back-up, which has increased the cost per sq ft on the IT employees. The cost of the seed has gone up highly in Hyd because of non-availability of grid power. So it will be a huge challenge for the government to control this.
What needs to be done to enhance Brand Hyderabad?
Initially there were a lot of apprehensions in the industry about the new government coming up and what they will do to enhance the sector. The current government has been making all the right noises but the time has arrived to translate that into action. If you want to attract investors, the decisions you take need to be more constructive.