Telangana CREDAI Secretary-General K Indrasena Reddy has expressed happiness over all round development of Telangana in all sectors of activity like – IT, pharma, education, medical and health and civil aviation and so on. The state, which is growing since its separation from Andhra Pradesh, is forging ahead to reach number one position in the country. “My joy knows no bounds to note the state is progressing in leaps and bounds in front of my own eyes,” an emotional Indrasena Reddy said.
The state government has achieved success in garnering the attention of the firms of national and international repute. He exchanged his views on the future of real estate in a freewheeling interview with Real Estate Guru in connection with the CREDAI Statecon.
What changes did you notice in the reality sector compared with the realty sector 10 years ago?
Ten years ago, on one side we found prosperous AP endowed rivers and on the other side we found the drought-prone Telangana co-existing. Farmers of Telangana used to wait for the monsoons to arrive. The rulers of the united AP were worried about how to quench the thirst of residents of Hyderabad with Osman Sagar and Himayat Sagar and inadequate water levels in River Krishna.
It was not sure to strike water in borewells digging even up to the depths of 2000 feet. In Bandlaguda, even after sinking of 10 to 12 bore wells in an acre of land, the owner is not sure of striking water. The builders were worried about the water to cure buildings under construction. Many real estate projects had to be abandoned for want of water in bore wells. Those were the days when the real estate developers had spent Rs 25 lakh in a year for curing of structures in 125-flat projects.
Currently, the tanks in Telangana are full, there are ever-flowing rivers and an increased ground water table. There is all round greenery in Telangana. If monsoons are timely and active, the rural economy would improve. As we all know, the progress of the country is dependent on the rural economy. But, today there is an assured irrigation system to assist the farmers in case of delayed monsoons.
Do you feel development of the economy is possible in Telangana?
Telangana is better placed when compared to other states financially, technologically, politically, socially and environmentally. Telangana is unique because it is well diversified into areas like pharma, healthcare, food processing, medical devices, aerospace, IT, electronics, textiles, agro-chemicals and so on. In the real estate sector too, thousands have been provided employment. The real estate sector absorbs both skilled, unskilled persons. Material suppliers, engineers, planning engineers, quality control engineers, site supervisors, paint contractors, carpenters, plumbers, tile layers, shuttering contractors, RMCC unit workers and so on can find jobs in the realty sector. After the agriculture sector, the real estate sector provides employment to lakhs of people.
Will there be any job cuts in the IT Sector due to corona?
In undivided AP, out of 10 employees one person used to belong to Telangana. Now, the conditions have improved and out of 10 employees, we find three or four from Telangana.
IT exports from the state increased to Rs 1.50-lakh crore compared to Rs 50,000 crore in 2013. To migrate to a place, people will judge a city whether it is safer for them. Out of the total CCTV cameras in the country, 50 per cent are in Telangana. It signifies how excellent the law and order is. Out of the total NRIs across the globe, NRIs from the USA remitted to India US $ 80.4 billion. The lion’s share of the remittances went to Hyderabad. Out of it, a major portion was invested in the realty sector.
Will the real boom in Hyderabad nosedive?
The population of Hyderabad – one crore – is soon going to increase to 1.4 crore by 2030. During the next eight years, the population of the city is going to increase by 40 per cent. Globally speaking, 100 million people did not own a roof of their own on their head. Every week, 10 lakh babies are taking birth worldwide. At least 10 lakh people are migrating to urban areas from rural areas.
There was rapid urbanization. In 2017, the number of housing units required in Hyderabad was 5.20 lakh. Only one-quarter of the total houses are available. The Indian economy is going to become a 10-trillion dollar economy in the next eight years. During this period, many new millionaires are going to emerge. I feel very glad to live in the state during such a golden period. There is no doubt that the next 10 years would be a golden period for the real estate sector in the state.
Why is the CREDAI not able to get tough with the promoters of pre-launch sales and UDS projects that became the bane of the realty sector?
The city has high prospects for realty sector growth. The realty market is indestructible unless we destroy it with UDS sales of flats and illegal layouts and so on. But, we have to check such undesirable tendencies. Many question why CREDAI is not able to swing into action on such tendencies. It is akin to foreign body falling in the eye. It should be removed carefully; otherwise the whole eye will get damaged.
Currently the realty sector elders and the state government are keen to stamp out such tendencies. Soon we will face these problems. At the time of demonetisation, everyone thought that it was all over. The global economic slowdown from 2008 to 2016, creation of Telangana state and such other developments, the industrial sector in Hyderabad witnessed several ups and downs.
With the simultaneous introduction of GST and RERA, everyone thought that they would spell gloom for the industry. But, the industry overcame it all. Similarly, we will soon recover from the undesirable tendencies. Currently, the demand for real estate would be very high in Western Hyderabad alone. Apart from it, the promoters should put their foot forward understanding the demand of the housing of which cluster and which industry. Then only, the State will emerge as an undisputed leader. Currently, the real estate sector is growing to become the status of an industry. It is employing many on a par with the agriculture sector.
Overwhelming response
We have drawn plans for the success of the CREDAI’s Statecon. The number of delegates taking part in the event is going to surpass all our expectations. Registration of delegates to the Statecon is going on at a feverish pitch. Hitherto such programmes were limited to metropolitan cities. But, for the first time, the Statecon will share knowledge to all builders across Telangana. It will promote interaction among developers. New chapters of CREDAI would be introduced during the event. Municipal Administration chief secretary Aravind Kumar will release a book on standard operating practices. IT Secretary Jayesh Ranjan will explain to the delegates the growth of the IT sector and its future development prospects.
We have invited developers to submit memoranda to the authorities highlighting their problems in towns. We will arrange them in a systematic manner and present the problems to the government for resolution. Mutual introduction will take place and also a motivation session has been arranged. Specials sessions on funding to construction firms and sharing of modern technology would be held. Ministers T Harish Rao, Niranjan Reddy, Vemula Prashant Reddy, Myhome Jupally Rameshwar Rao and others will grace the occasion
– Panduranga Reddy, Vice-president, CREDAI, Telangana
Statecon… On a grand scale
There are 14 CREDAI chapters in Telangana enjoying a total membership of more than 900 builders. The event will help sensitize the builders on emerging technologies. For the first time, a book will be released at the event for the benefit of the builders entering the construction field explaining everything from the start to finish of a project. A function to present Create Awards, held every two years, has been planned elaborately.
The Mancherial chapter was started in 2018 with an initial membership of 40. Their strength has now risen to 95, ranking third in the state after Hyderabad and Warangal chapters. There are another 100 builders in and around Mancherial. For the first time, a gated villa project has been launched in Mancherial.
Madhusudhan Reddy, Vice-president, CREDAI Telangana.
Fresh lease of energy
The Statecon of CREDAI will be a highly useful event to builders, promoters and developers. Also, It will provide a wonderful opportunity for the construction professionals to clear their doubts. The participants can get new insights about Dharani website, RERA rules and the TS-bPASS, single window mechanism to issue all clearances. They can easily learn the procedure to be followed to get approvals quickly. Officials of relevant government departments will take part in the event. Therefore, builders will be able to air their problems to them. Participants can know more about real estate trends and the direction the realty market is taking. The development of various areas from a real estate perspective can be easily understood. Learning new aspects will give the builders and developers a fresh lease of energy.
In fact, the Karimnagar market is developing on the lines of Hyderabad market. Gated villas have been started here. Many more builders have been emulating their examples. The house rent market is also very good. At least 30-40 builders from Karimnagar are expected to take part in the event. The recent trend noticed in Karimnagar is construction of apartments in three or four acres.
Many of those who have retired from service are keen to settle down in Karimnagar. In Hyderabad, finding a house at a low price is difficult. Once can buy a huge house in Karimnagar by spending only Rs 50 lakh. Instead of living on Hyderabad city outskirts, people feel Karimnagar is the best choice to spend retired life. One can get fresh vegetables and there is no dearth of ventilation here unlike in big cities.
Ajay Kumar, Vice-president, CREDAI Telangana.
Healthy competition
Builders get apartments designed adhering to local conditions. Someone should analyze good technical aspects and other things like buyers’ response, quality of the construction and so on. The builder should be encouraged by praising good qualities about the projects. That is why CREDAI is conducting the Create Awards presentation programme once every two years. The awards infuse healthy competition among developers.
The builders will execute projects rather qualitatively for the purpose of winning awards. The builders will get their knowledge updated with the participation of Statecon, which helps entrants to the field derive inspiration from the major players. Those who cannot afford huge investments in Hyderabad and those who want to lead life rather leisurely are investing in Warangal. As a result, the property market is on the rise here.
Even the retired have been setting their eyes on Warangal to settle down there. There is good demand for homes built for such buyers. IT companies like Genpack have been starting their activities there. In fact, two or three IT companies have come into operation in Warangal. A textile park is on the anvil here, improving the employment prospects in the region. One should shell down Rs 70-80 lakh to buy a flat in Hyderabad, whereas one can buy a flat at a comparatively low price of Rs 40 lakh.
Jaganmohan, Vice-President, CREDAI Telangana.
