Even one year after formation of Telangana, there are no positive signs from the Hyderabad’s residential market. To put things in perspective, Ganesh Vasudevan, CEO, Indiaproperty.com, expresses his opinions on the real estate industry in Telangana.
Few of the answers he gave to the below questions asked:
How would you assess the real estate industry at the current position?
As said, there are no positive signs in the real estate market, after the formation of the state. I feel it is more reflective of the overall economic situation, and it is not specific to Telangana or Andhra Pradesh. In comparison to all other markets in the South in the residential sector, Hyderabad is the most attractive market from a price perspective.
Compared to Chennai and Bangalore, the prices are far cheaper for similar sized and similarly located residential properties. In spite of this, in terms of transactions, the last one year was quite disappointing.
Do you think that, there must be some action taken by the Telangana government to boost the industry?
A comfortable amount in the budget is already being allocated by the government, towards enhancing real estate investments, particularly for flyovers, Hyderabad Metro Rail and other aspects which would boost the residential value. So I feel the government is making its best efforts to boost the industry.
Google announcing a campus in Hyderabad might be a right fillip to the industry. The government efforts of attracting large MNCs to set up offices in Telangana, are appreciable.
Considering people prefer to physically visit sites before making such a huge investment like buying an apartment or a home, what are the benefits of Internet property portals?
During the one year, the online industry has evolved significantly. The newly launched features enables a customer to get almost a virtual site visit done, including virtual property tours, 3D walk throughs, etc. Instead of going physically in eliminating choices, this is an easier way as, they can do a lot of groundwork upfront on the internet, and then choose from a set of properties which matches their requirements.
What are the challenges that remain at large in the industry and what needs to be done?
Single-window clearance system is the biggest challenge for process approvals. Getting approvals faster is a crucial element and adds to the cost for the builder and the buyer.