Hyderabad Realty on a Sticky Wicket due to Metro Rail, ORR Delay

Hyderabad Realty on a Sticky Wicket due to Metro Rail, ORR Delay

Hyderabad: Inordinate delay of over nine months in the construction of Hyderabad Metro Rail (HMR) and Outer Ring Road (ORR) is adding to the woes of the city realty sector which is already reeling under various problems.

The negative impact of the delay was highlighted by popular property portal 99acres.com, in its quarterly report (July-August 2015) on real estate trends and analysis of seven metro cities in India. According to the report, which was released on Wednesday, property prices have remained static in the past three months and the rental value has dropped by 3 percent. The delay in completing infrastructure projects like Hyderabad Metro Rail and ORR has further affected Hyderabad realty. East Hyderabad was the worst-hit due to these delays, said Narasimha Jaya Kumar, Chief Business Officer of 99acres.com.

With the alleged problems being encountered in land acquisition in the old city delaying the metro rail project further, the observation made by Jaya Kumar gives further pain to the builders and realtors of Hyderabad.

“The future of Hyderabad realty is greatly dependent on the metro rail and ORR. For instance, if ORR gets completed then many areas falling on both sides of the expressway will see a rise in property prices and spur new launches. Many builders, who had acquired lands on the outskirts of Hyderabad, are looking for completion of the ORR to start new projects. The ORR delay is definitely worrying,” said K Gopala Krishna, treasurer of Telangana Real Estate Developers Association (TREDA).

While areas like Kothapet and Nagole benefited from the under-construction metro, areas like Bandlaguda and Hydershakote gained from being strategically situated between PV Narasimha Rao Elevated Expressway and Outer Ring Road. Barring a few areas like these, most other areas of Hyderabad are either negatively impacted or are experiencing zero growth due to delays in public infrastructure projects.

“Many buyers, who used to prefer central Hyderabad locations like Panjagutta, Somajiguda, Secunderabad and Koti among others, are moving to places like Madhapur, Gachibowli and Hitec City in western Hyderabad. New areas on the outskirts which have good connectivity and social infrastructure are also preferred. Metro rail connectivity and access to ORR will be the key points which will influence the decision of these segments,” said G Narotham Reddy, general manager of Cybercity Builders and Developers.

State of Things

 Property prices have remained static and rental values have declined by 3 pc

 Metro rail connectivity and access to ORR to spur construction and home-buying

 Metro rail land acquisition blues in old city adding to the woes of builders