The Telangana government seems to be trying many things simultaneously in order to give a balanced development to the state. Same was seen in the recently unveiled Budget 2015-16 by the finance minister Etela Rajender. In the total of Rs 1, 15689 crore budget, the minister tried to touch every aspect of the state work, including the reviving real estate market. Though the sector did not receive any particular budget allocation or benefits, the assignment of large funds to metro, infrastructure, security, flyovers, drinking water and roads and buildings is expected to have a positive impact on it.

From the finance minister’s budget speech, it was clear that the government realizes the importance of the real estate market. The minister said that the information technology and real estate sectors are poised to achieve a quantum growth during the next fiscal (2015-16) before adding that the uncertainty that prevailed for the last nine months has now given way for optimism with the help of measures initiated by the state government.

Aju Thomas, president, Trinity Partners, a real estate services company, seems to agree. He says, “This government’s focus seems to be on the overall socio-economic development across the state. The current budget focuses on power, infrastructure, agriculture, irrigation and industrial development, which will ultimately help the real market investments. It should improve the business friendly reputation of the state, especially Hyderabad, which in turns helps the real estate industry.”

The state capital was given special attention. Greater Hyderabad Municipal Corporation (GHMC), Hyderabad Metro Rail (HMR) and Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) received Rs 526 crore, Rs 416 crore and Rs 1,000 crore respectively. In order to ensure public safety and security in Hyderabad, the government sanctioned Rs 271 crore for the purchase of 4,433 vehicles for Hyderabad and Cyberabad Police. These vehicles are expected to respond within 10 minutes of receiving a complaint or call.

“All these points will make Hyderabad a more desirable city and will have a positive impact on the city’s realty market. The metro has already positively affected areas from where the proposed lines are being developed or planned,” says Thomas.

In addition to it, the government has also earmarked Rs 1,000 crore for 2015-16 for the 2BHK housing scheme to the poor, Rs 1,600 crore have been allocated for the development of flyovers while Rs 4,980 crore has been sanctioned for the construction of roads and buildings in the state.

Hyderabad is driven by the IT sector which seems to be improving too. Thomas says, “The IT sector has been absorbing a lot of office space in the past 12 months. Resultantly rentals in Hitec City for especially Grade A properties have seen a significant increase. The IT sector seems to be leading the charge in reviving Hyderabad’s economic fortunes, which has touched on its real estate market as well.”

With improving business sentiment and activity supported by government’s positive intent, it’s just a matter of time when Hyderabad realty gains momentum.

Source: TOI