The show presents a unique opportunity to select your dream haven at the most suitable price
Hyderabad: 13th August 2021 – CREDAI, the Confederation of Real Estate Developers’ Associations of India, the country’s apex body of private real estate developers, has organized the 10th Edition of the Hyderabad Property Show from 13th August to 15th August 2021. The property show was inaugurated by Shri. Vemula Prashanth Reddy, Minister of State for Roads, Buildings, Legislative Affairs, and Housing Department, Govt of Telangana in the presence of the CREDAI senior leadership team comprising of Shri P. Rama Krishna Rao,President, Shri. V. Rajashekar Reddy,General Secretary,Vice Presidents Shri G Anand Reddy, Shri K Rajeshwar, Shri N Jaideep Reddy, Shri B Jagannath Rao Treasurer Shri Aditya Gowra, and Joint Secretaries Shri Shivraj Thakur and Shri K. Rambabu, along with other EC members, member Developers and representatives of suppliers and financial institutions.
CREDAI Hyderabad Property Show 2021, a three-day event will be held at Hitex, Hyderabad. The show is aimed towards bringing together all the people from diverse facets of the construction industry, including world-class developers, material vendors and manufacturers, experts, and financial establishments from across Hyderabad to present the progressions in the real estate sector. The event will showcase the best possible choice of residences and workspaces, with over 15,000 properties on display that will suit all the necessities of the customers.
To comply with the COVID-19 safety measures, the number of stalls has been reduced from 150 to 100, with wider corridors to maintain sufficient social distancing. Temperature checks at the entrance and sanitization stations will be made available to ensure seamless hygiene.
Commenting on the occasion, Mr. P. Ramakrishna Rao, President, CREDAI Hyderabad, said, “Navigating this pandemic has been challenging for all the individuals and the businesses. In these trying times, Government support has played a vital role in helping industry tide over the situation. The innovative policies of the Telangana Government like TS-iPASS, TS-bPASS, etc. have played a significant role in ensuring ease of doing business in the state. We have worked closely with the Government of Telangana, who has graciously accepted our request to allow extension of all approvals and permissions by 1 year because of the pandemic, without any additional fee. To further help the industry, the Government has permitted the payment of permit fees, betterment, development, and capitalization charges in installments. We have also worked closely with the government for permission to allow podium parking, this will have a significant impact in reducing the cost of construction and reduce the risk of flooding, and speeding up the construction. Besides, we would also like to highlight that a huge corpus of funds for labor charges is with the government, we request that the same should be utilized for setting up healthcare and other facilities for the site labor. We would also request the government to schedule a quarterly review meeting with all stakeholders for TS-RERA, to review the progress and resolve the issues.”
He further added, “The growing IT/ITeS sector, increased investments in warehousing, aviation, healthcare, and other sectors in the state, there will be an increase in jobs, resulting in the subsequent increase in the demand for commercial, residential, and retail real estate. In spite, of the pandemic, Hyderabad has shown great resilience, and the demand for real estate has been growing steadily. As people get vaccinated and companies restart work from office or Hybrid work schedules, the demand for real estate will gain further momentum. Overall real estate growth in the city during the first half of 2021 has been well above the national average considering all asset classes. The city led institutional investments during Q1 2021 (January-March) pan-India accounting for a major share of total investments in the sector. We have very low inventory levels, trigging a large number of new project launches this year, indicating a lot of vibrancy in demand. To facilitate consumers and help them capitalise on the various investment opportunities, we will be organizing the CREDAI Hyderabad Property Show 2021 from 13th to 15th August at Hitex, Madhapur. Through this initiative, we hope to amalgamate the most attractive, genuine properties backed by lucrative financing options, under a single umbrella. We urge the people, to make the most of this property show and select the property of your choice before the prices go up.”
According to Mr. RK Rao, President, CREDAI Hyderabad :
Salient Features – Brand Hyderabad
- Real Gross Domestic Product (GDP)2 has grown from INR 4.16 trillion in FY 2015 to INR 6.43 trillion in FY 2021*, with a Compounded Annual Growth Rate (CAGR) of 7.5% which is significantly higher than the national Real GDP CAGR of 4.2% for the same period
2. The city is the second largest contributor to revenue from IT exports in the country and is home to global bigwigs like Google, Amazon, Microsoft and Facebook.
3. At INR 1.46 trillion in FY 2021, IT/ITeS exports from the state have grown at an annualised rate of 14% in the FY 2014-2021 period.
4. Hyderabad’s contribution to the national pharmaceutical production is more than 33% and its share in India’s total pharmaceutical export
5. In FY 2020, the EV manufacturing segment attracted INR 4.5 bn under the Invest Telangana scheme for mega projects, second highest after the IT-Data Centre segment4.
6. Whilecityishometo4,000+ start-ups, T-HUB has incubated more than 120 startups in last 5 years.
7. As per Mercer’s quality of living survey 2019, Hyderabad retained the no.1 spot for 5 consecutive years in a row among the Indian cities
8. JLL’s CITY MOMENTUM INDEX:
Hyderabad has been assessed as the world’s most dynamic city from amongst 130 cities across the globe in 2020. The city has been assessed basing on the Socio-economic parameters like connectivity, GDP growth, FDIs, etc and Commercial real estate parameters like net absorption, office rents, investments in office real estate, transparency, etc.
9. Phase I of the MMTS has been operational since 2003 and operates 140 services per day, covering a distance of 43 km and connecting 27 stations. Phase II of the railway corridor is under construction. Once completed, the entire MMTS will cover a distance of 152 kms and connect 45 stations.
10. Apart form the Development of Larger Projects like ORR, One important initiative is the Strategic Road Development Programme (SRDP) which comprises multiple smaller projects like skyways, cable bridges, elevated corridors, roads, underpasses, grade separators and flyovers. These projects under the SRDP will ensure an overall improvement in the city connectivity and ease traffic congestions. The Capex for the programme has has increased from INR 409 mn in FY 2017 to INR 6,541 million in FY 2021.
11. The project – Keshavapuram Reservoir – spread over 1,490 acres will help in ensuring the drinking water requirement of Hyderabad till 2050. With such concerted efforts on economic growth along with enhancement of infrastructure carrying capacity, Hyderabad is likely to ensure sustained economic and employment growth over a longer term.
12. Data centre requirement may triple in Hyderabad by 2023. Microsoft is reportedly planning to open a data center in the city of Hyderabad, India, with total investment of USD 2 billion. Amazon Web Services is setting up data centers in the city with an estimated investment of USD 2.6 bn.
Adding to this Shri V. Rajashekar Reddy, General Secretary, CREDAI Hyderabad, said, “Due to the work from home trend influenced by the pandemic, the Hyderabad residential market for larger homes has witnessed abundant growth. According to a report by Knight Frank India, new home sales in Hyderabad witnessed a significant 150% growth year-on-year (YoY), despite the pandemic. Hyderabad remains to be a desired location for businesses and will continue to thrive in the real estate industry because of its ever-growing and rapid entrepreneurial ecosystem, proactive governance, the pioneering process for approvals like TS-iPASS and TS-bPASS, ensuring ease of doing business and ensuring inflow of investments across the sectors. Besides the focus on IT, ITeS, in FY21, the Telangana State Industrial Infrastructure Corporation (TSIIC) developed 10 new industrial parks and allotted 810 acres of land to 453 industries with an expected investment of Rs. 6,023 Crore. The 10-year Electric Vehicle (EV) policy rolled out by the state is aimed to attract US$ 4 billion investments to make the state a hub for electric vehicles and energy storage systems, and to create employment for 120,000 people. In FY21, there were 311 investment proposals in the life sciences sector worth Rs. 6,734.56 crore (US$ 919.43 million). These investments and the subsequent job creation will act as catalysts for the demand for commercial and residential real estate in the city. Presently the price for residential and rental real estate is lowest, amongst cities with comparable infrastructure, however, this will not stay for very long. It is advised that people wanting to purchase a home should decide immediately and make the most of the wide range of projects from reputed builders at the 10th CREDAI Hyderabad property show – the most credible property expo. Based on the fundamentals of the city and the plans for future development, the property prices could increase by as much as 30-40% in the next few years.”
He further added, “Despite the third wave of the pandemic lurking around, we have taken measures to ensure maximum safety of everyone involved in the event. The CREDAI Hyderabad Property Show will abide by all the social distancing and hygienic measures as per COVID protocols. We have stalls with larger and more open spaces, adequate distancing, sanitization at all places, and guidelines at every step, we assure all the developers and visitors that their safety is the utmost priority. Masks will be compulsory for all the attendees during the event. With all these precautions in place, we believe this property show will be a raging success and will direct people towards the property of their dreams.”
According to Mr. V Rajashekar Reddy, General Secretary, CREDAI Hyderabad.
Salient Features – Warehousing
1. Regulatory impetus: Policy interventions such as TS- iPASS and dedicated sectoral policies are expected to boost investments in the state’s I&W sector
2. Infrastructure initiatives: Proposals for industrial corridors and development of a regional ring road are anticipated to improve logistics efficiencies, thus boosting industrial growth in Hyderabad
3. Sector-specific infrastructure: The development of specialized sector-specific infrastructure in a cluster-based format would enhance the attractiveness of the state’s industrial parks. It would also enable tenants to lower operation costs through shared infrastructure
4. Warehouse space take-up Hyderabad was about 11 million sq. ft. during 2018-H1 2021.
The leasing was predominantly concentrated in semi-investment- grade properties in the city. However, Western and Southern Corridors witnessed a rise of warehouses launched by national developers post 2019.
Occupier preferences thus slowly started to shift towards investment-grade warehouses in recent year
Salient Features – Commercial Real Estate, Office space
1. With the city and national developers responding to the demand from such global occupiers, the city’s Grade A office stock has risen the fastest among all major Indian cities. It grew by 1.7 times between 2016 to H1 2021, rising to 77 million sq ft by H1 2021, making it the fourth biggest commercial real estate market in India by size. The city has also improved its share in total Grade A office stock in India from 9% in 2016 to around 12% currently.
2. Goldman Sachs has selected Hyderabad as its second location in India for its Global Capability Centre (GCC). This facility is expected to employ upto 2500 people by 2023
3. Qualcomm leased 1.6 million sq ft of new space in the city to expand their operations. This facility is likely to get operational by end of 2022.
4. FCA group has announced setting up a Global Technology Centre—Information and Communication Technology Center or FCA ICT—in Hyderabad at an investment of USD150 million and create 1000 new jobs by end of 2021.
5. Wells Fargo leased 1.2 million sq ft of new office space for expanding their operations. This facility would facilitate additional headcount of 10,000.
6. Hyderabad office market saw the highest ever net absorption in 2019 as it crossed the 10 million sq ft milestone and was at 10.5 million sq ft.
Salient Features – Residential
1. The Hyderabad residential market recorded a growth in terms of demand as well as supply in H1 2021 as compared to H1 2020. Residential sales grew by a significant 150% YoY in H1 2021. Further, 63% of these sales were concentrated in the West Hyderabad region.
2. In terms of ticket-size, demand grew across all categories, especially in the INR 2.5-5 mn category with a 240%YoY increase and the INR 10-20 mn category with a 158% YoY increase in H1 2021.
3. New launches grew by a substantial 278% YoY in H1 2021 as developers responded to the growing residential demand in the market. West Hyderabad continued to account for the largest share in new launches, growing by 312% YoY in H1 2021.
4. On account of the pandemic- induced work from home trend, demand for larger homes has picked-up substantially in the Hyderabad residential market over the past few months. As a result, the share of the INR 10-20 mn ticket-size category in the total units launched grew from 18% or 1,544 units in H2 2020 to 27% or 4,444 units in H1 2021.
5. Avg housing prices have been steadily increasing from 2018 – Rs 4000 per sft to Rs 4750 in 2020
Please visit the CREDAI Hyderabad Property Show 2021 @ Hitex from 13th to 15th August 2021.
