Hyderabad - A New Face Of India's Growth Story
The past year has been the most eventful year for the state of Telangana and especially to Hyderabad. It has been in national and international news in every arena, be it sports, business, entertainment, literature, hospitality, ease of businesses, governance or real estate sector. The major credit for all these undoubtedly goes to the Telangana Government, whose long-term measures for economic sustainability and infrastructure growth has helped the state in redefining its identity as a vibrant and prosperous state.
The major contributors to the fast-paced development of the Telangana state and along with its cities - Hyderabad, Warangal, Karimnagar, Nizampet, etc. are discussed below.
Favourite Destination for Businesses
The 2016 World Bank's "ease of doing business" ranking. In 2016-2017, Telangana recorded a 10.1% growth in the Gross State Domestic Product (GSDP), which is almost double the GDP growth of India, also the per capita income (PCI) grew by 12.6%. These achievements can be attributed to the Telangana government that has focused on strategic development initiatives to accelerate economic growth.
Real Estate back on Investment Radar
About 13% of Telangana's GSDP is contributed by the real estate and construction sector as a whole. Hyderabad has seen strong real estate growth in the last three years and Credai has praised the policies of the Telangana government for their efforts in this sector. Due to clear political support, large companies have entered the city and investors have already begun to exploit investment opportunities. The land costs in Hyderabad's prime locations have revived. Commercial office rentals increased by 23% in last three years and absorption of office space was almost 6.5 million square feet in 2016. The vacancy rate went down to 5-7% in the main IT companies. The capital values of residential properties increased by 8-10% in the last three years and residential launches increased 30% since 2014. Also during the demonetization, the implementation of the GST and the introduction of RERA, Hyderabad saw an increase of 6-10. % in residential sales in contrast to other parts of the country.
Hyderabad is a Progressive city
Hyderabad has emerged as one of the progressive and high-value city globally as it is being ranked fifth among the 150 cities in JLL's City Momentum Index report. The index records and tracks the short-term socio-economic and real estate momentum of a city, in combination with the measures of whether that city has more strong long-term foundations and plans for success. Increased investment in infrastructure, the creation of highly skilled jobs and high levels of FDI are characteristics that define Hyderabad, according to the report. The development approach provided a boost to the development of Hyderabad that already had an established business environment. Google, Apple, Uber, Amazon and Ikea are some of the big companies that have invested in the city in recent years.
Positive Investors Approach
Investors are keeping a positive approach towards Hyderabad with many big brands such as Blackstone, Brookfield and Acendas have already invested in the city and many others plan to invest. This is because of the reason as Hyderabad ranks best in construction, absorption, price, office, retail, hotel, investment transactions and transparency. Prices appreciated due to the positive dynamics of the market. Other factors which work in favour of Hyderabad are better education level, international patent applications, innovation capability, IT & technology companies and acceptable environmental quality.
Fashion & Hospitality Businesses
Restaurants and cinemas are the main factors for attracting people in malls and shopping centres. As such, the restaurant space in shopping centres can double approximately to 25% of the total available space. Nearly six million square meters of space in the mall is expected in the next three years. The penetration of the international brand in food and Fashion is also on the rise. International fashion brands like Forever 21 and H&M are well accepted by local buyers, resulting in a healthy increase in sales.
The government of Telangana has implemented many key policies such as TS iPass, impact fees, shelter fee, e-STAMPS, Telangana 2BHK program, affordable housing to bridge the gap. Telangana's Data Center Policies will open a new door for real estate development and will create opportunities for the development of housing for middle-income people.
Telangana has implemented key policies such as TS iPass, impact fee, shelter fee, e-STAMPS, Telangana 2BHK program, affordable housing to bridge the gap. Telangana's Data Center Policies will open a new door for real estate development and will create opportunities for the development of housing for middle-income people.
The city can witness a large amount of foreign capital that goes into the development of the office in the medium and long term. Residents and retail demand may improve because of increased employment.