Pharma Sector Boost To Make North-West Hyderabad A Real Estate Hotspot
Following a slowdown across sectors amid the Telangana agitation, the Hyderabad real estate market is now set for a revival, especially after the resolution of the political turmoil and formation of a stable government. PropTiger's latest report on the city's real estate market suggests a likely spurt in demand on the back of the burgeoning pharmaceutical and IT/ITeS sectors. The growing workforce of these industries is seen making Hyderabad a hotspot for real estate.
Also, residential real estate prices in the city, lower than those in other IT/ITeS hubs like Bengaluru and Chennai, make Hyderabad an attractive market.
What the numbers say
PropTiger DataLabs' latest report, 'North-West Hyderabad, Emerging Manufacturing Hub', shows that the northwestern region accounted for 44 per cent of the total absorption – across apartments and villas – in Hyderabad from April 2013 to December 2015. Among the top-grossing localities in terms of absorption were Kukatpally, Miyapur, Kompally and Bachupally. These localities accounted for over 50 per cent of total sales in 12 months to December 2015.
With the coming up of the Hyderabad-Nagpur Industrial Corridor, localities like Medchal, Kompally, Kukatpally and Alwal are also expected to see a surge in property prices.
Pharma sector: A shot in the arm
According to the DataLabs report, North-West Hyderabad is likely to see a rise in demand for residential properties. Among the main localities to benefit could be Kukatpally, Miyapur and Medchal, especially because of their connectivity with National Highway-7 and proximity to the IT/ITeS hubs and pharma manufacturing corridors.
While the IT/ITeS centres have been established for long, the pharma sector is now coming up as a major source of employment. Prominent companies like Aurobindo Pharma, Dr Reddy's Labs, Hetero Drugs and Suven Life Sciences, among others, have set up their units/offices in the northwestern part of the city.
In a recent development, global pharma major Ferring Pharmaceuticals has announced its plans to invest $100-250 million in a plant in Telangana. Additionally, the Telangana government plans to establish a pharma university in the state, besides the proposed Pharma City on the outskirts of Hyderabad.
Anurag Jhanwar, head of consulting and data insights at PropTiger.com, says: “One of the reasons why the pharma sector is doing well is that it caters to the fundamental needs of health and is, thus, insulated from global turmoil. Also, the policies of the state government promise to be conducive to growth of this sector. This, in turn, is attracting major domestic and international pharma players.”
With the pharma sector expected to grow in the region in the years to come, many more jobs will be on offer. And, with a growing working class, the demand for real estate in the area will also increase, Jhanwar adds.
The positives in economy have given an impetus to consumer trends. This is evident from the growing demand for residential spaces in North-West Hyderabad. With a fundamentally strong infrastructure, manpower and ecosystem, the region is set to come up as a real estate hotspot.
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