Realty turns patient, plays long innings

Developers adjust to longer gestation amid urban expansion

By Samuel Joshua

Hyderabad’s real estate sector is shifting gears, with developers adopting a more patient approach as project timelines stretch to five to six years amid rising infrastructure-led growth and evolving demand.

“The city is growing with increasing population and rising employment alongside significant urbanisation,” said N. Jaideep Reddy, president, CREDAI Hyderabad. He noted that while market ups and downs are natural, concerns around “unsold inventory” are often misunderstood. According to him, until a project receives an occupancy certificate (OC), it should be treated as ‘work in progress’, and only units remaining unsold after OC qualify as true unsold inventory.

Infrastructure expansion is emerging as the biggest catalyst. Metro Phase 2 is expected to significantly influence real estate patterns, with areas along metro corridors witnessing higher rentals, faster migration and stronger commercial activity, while also improving overall quality of life.

The Telangana government’s ‘Future City’ initiative is aimed at addressing traffic congestion, pollution and sustainability challenges by creating a ‘City within a city’, drawing inspiration from global models such as Putrajaya in Malaysia.

However, Jaideep pointed out gaps in planning. “There is no proper zoning in places like Neopolis. There are no schools, hospitals, banks or parks in some layouts,” he said, stressing the need for balanced, mixed-use development.

The proposed bullet train corridor near Shamshabad is expected to transform connectivity in the southern part of the city, potentially reducing travel time to Pune and Bengaluru to around two to two-and-a-half hours. This could drive housing demand as professionals gain the flexibility to live in Hyderabad while working in other cities.

The Musi riverfront development, spanning 54 km, is seen as a major opportunity despite execution challenges. “I feel it will be a game changer,” Jaideep said, adding that Hyderabad’s relatively low density supports premium real estate growth.

Elevated corridors are also being developed to enable signal-free movement and improve east-west connectivity across key stretches such as Jubilee Hills and Banjara Hills, easing congestion and streamlining traffic flow.

Meanwhile, global geopolitical tensions are pushing up construction costs. Key materials such as pipes, copper, waterproofing products, cement, tiles, paints and chemicals have seen sharp increases. Tile prices alone have risen by around ₹20, while plastics and related inputs have become costlier by nearly 30 to 35 per cent.

Jaideep said this makes the current period favourable for buyers. “This is the right time to buy property as construction costs are expected to rise further,” he said.

On transferable development rights (TDR), he said the mechanism is aiding both developers and infrastructure projects by enabling additional floor space while facilitating road expansion. “TDR is not just enabling construction, it is becoming a key driver that balances development with infrastructure needs,” he said.

He also advised first-time homebuyers to exercise caution. “Proper due diligence, including checking approvals and documentation, is essential before committing to a purchase,” he said, recommending buyers verify RERA approvals and avoid pre-launch offers.

LONG INNINGS

• Project timelines stretch to five to six years. 

• Metro Phase 2 to boost rentals, migration. 

• Musi riverfront spans 54-km development stretch. 

• Construction costs rise 30–35% across materials. 

• Elevated corridors ease congestion across city. 

• TDR supports infra and development balance. 

quote

“This is the right time to buy property as construction costs are expected to rise further.”
N. Jaideep Reddy
president, CREDAI Hyderabad