The commercial realty segment has much to cheer about in Hyderabad. There is a visible growth in the demand for such spaces. Is this an indicator of the fact that the city is on the road to recovery? That it could be on the verge of recovering its realty footing? From what the experts say it seems so. The city is finally making some head way after going through some tough times recently.
The city is presently undergoing a commercial realty space crunch. There is very little supply of quality office space here. This is being attributed to the fact that the market has had witnessed a slump over the last few years. The slump is a result of the political unrest which surrounded the creation of the state of Telangana. When these agitations were happening, many companies which were present in the city chose not to expand their presence here. Because of this the commercial realty segment slumped and hardly any new projects came up in this vertical. The same happened to the housing vertical as well.
The political situation in Hyderabad got sorted in mid-2014 with the bifurcation of the state of Andhra Pradesh. Things started untangling from then onwards. Since there was clarity about the political future of the city, some confidence came back into the real estate sector as well. Those who were involved in the commercial real estate segment started commissioning projects in this vertical.
Since the new projects were started only like a year or so ago, they will take a bit of time to get going and wrap up. Till then there will be a vacuum and hardly any new projects coming into this segment. So there is only existing inventory which is quite less to begin with in the first place. So one can see why there is a shortage and demand for commercial properties. The rentals will also shoot up for these segment considering that there is a shortage of space.
Since there is a considerably more activity happening in the commercial realty segment, residential real estate is also on the path towards recovery. Prices for properties such as apartments in Hyderabad and individual houses for sale in Hyderabad tanked during the pro-Telangana agitations. This city became one of the worst performers as far as real estate in the country was concerned. No one wanted to enter this market such was its state.
After hitting rock bottom, the only way to move was up. And that’s exactly what the housing market is doing here. Though the prices for apartments in Hyderabad and individual houses for sale in Hyderabad have not gone to back to the heydays of the past, they are recovering. Things are shaping up well for this city. It is also attracting new employment opportunities. This aid in the recovery process and help speed things up. There are only good times ahead of this city as it has all the right ingredients coming together.
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