The Hindu : Andhra Pradesh / Hyderabad News : Real estate pins hope on IT recovery

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Wednesday, Feb 24, 2010
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Real estate pins hope on IT recovery

Real estate pins hope on IT recovery

HYDERABAD: Reports suggesting revival of the Information Technology (IT) have started to translate into increased enquiries from property seekers and thus offering some respite to a beleaguered real estate sector in and around the city.

And having spent almost a year with construction activity coming to a near grinding halt and very little sales to boast of, the construction industry is now pinning its hope on the IT sector to stage a return as one of its prime mover.

From global recession to the Telangana factor, real estate has taken enough knocks in recent months to slip down from its boom phase and ended with unsold stocks getting piled up and projects put on hold at different stages. “If you look back at 2009, very few big developers and hardly any mid and smaller ones have come out with new projects. That shows the status,” says a builder.

However, developments in the IT sector are being keenly watched amid anticipation that situation improving there will bring in some positive results for them. “The IT industry has announced new hiring and there are considerable enquiries from the sector and also from others from other cities,” says Anand Reddy, PBEL Executive Director.

Similar expectations are echoed by others in the industry too.

“The situation in IT sector is improving and there are reports of heavy recruitments on cards. This will help builders in the form of a rise in sales and also in clearing unsold stocks that have accumulated in last few months”, says C. Prabhakar Rao, president of the Greater Hyderabad Builders Federation.

The talk in circulation in the real estate industry happens to be that the IT has started to show signs of recovery and that the phase from 2010 to 2014 could provide some relief to the distressed construction sector. Once the sales pick up, it is hoped that investors will step in and acquire properties to sell later with a margin.

Another trend predicted by the industry is that buyers now will be more interested in completed projects than putting their money into the ones that are just announced or are in very early stages. “This is going to sideline those who announce a project and hope to take up construction with booking amounts,” points out Mr. Rao.

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