After spending over a decade in the real estate business, Amulya Constructions has emerged as a leading public and private contractor for construction and development. With almost ten residential projects completed, the group has another five in the pipeline. Arun Rajnala, MD of the group talks to Magicbricks.com’s Shradha Goyal about his positive expectations from Hyderabad’s real estate market after a sluggish year. He thinks that the general elections to be game changer for the city’s market.
What is your expectation from the Hyderabad real estate market in the year 2014?
After a stagnant market in 2013, it is expected to become more dynamic after the elections. While enquiries and sales are expected to gain momentum, prices may go up by 20 per cent. Right now Hyderabad has the lowest prices and thus it is the best time to purchase property. Telangana’s announcement will bring a temporary impact on the real estate market as buyers from Andhra Pradesh may pull out of investing in Hyderabad.
Which areas are expected to see maximum real estate development in the coming year 2014? Why?
Most of the future development is expected to be concentrated in Western areas, such as Gachibowli, Kondapur, Hitec City, Kokapet, Chanda Nagar and Miyapur. The presence of IT industry has resulted in majority of demand being concentrated here.
Did you launch any new projects in 2013? If yes, where? Why did you choose these locations?
We have several ongoing projects including one which was launched in late 2012. It is now nearing completion and is located in Chanda Nagar. The locality was selected for its profitable business viability as the land values here are much lower than Gachibowli or Hitec City. Also, being closer to the IT hubs, it receives a healthy demand from mid-income segments. While 50 per cent of the project has already been sold, we expect to liquidate the remaining within next 2-3 months.
What was the volume of sales and stock in the year 2013 vis-à-vis the last year? Is there any un-sold inventory in the city that might impact real estate prices in the coming year?
2012 was definitely better than 2013. While there is an unsold inventory in the market, especially in the western areas, it is not going to have any adverse effects. This is because as and when the buyer sentiments improve, all the stock will get consumed. Currently, the political uncertainty is keeping the buyers away from the market.
Which infrastructural developments have had a positive impact on the market in 2013? Which were the areas that benefitted out of it?
2013 saw most of the areas being impacted by the Metro Rail. All the areas which came in direct reach of the metro witnessed price appreciation of almost 20-22 per cent last year. In future, the SEZ being developed in Gachibowli, may leave a major impact on housing sector. The Central government is investing almost Rs 1 lakh crore on this project and it is expected to create more than a million job opportunities.
Which were the most preferred property type, configuration and budget ranges in the year 2013? Was supply aligned with demand?
The budget range of Rs 30-50 lakh was the most preferred in Hyderabad. While 2BHK apartments were most asked for within Rs 30-35 lakh, 3BHK apartments were sought within Rs 40-50 lakh. The supply too remained aligned, except in the core areas where there were limited developments due to crunch of land.
Source : TOI