Srikrishna panel traces the arrival of real estate developers from other metros to Hyderabad
The real estate sector in Hyderabad is intricately linked to IT and ITES and its character within the city has been shaped by investments in them, according to Srikrishna Committee report.
In a chapter on ‘Issues relating to Hyderabad Metropolis', the report mentioned that investments by IT majors also saw the arrival of real estate developers from cities like Bangalore, Mumbai and Delhi as suppliers to these firms. These high-end infrastructure projects improved standards in the city and led to a more diverse industry structure.
It said that unlike other cities where the real estate market has been dominated by local firms, the Hyderabad market has participation from firms across the country. In part, this is also due to the use of auctions as a mechanism for land allocation by agencies such as the erstwhile Hyderabad Urban Development Authority.
No clear estimates
Stating that the real estate market spread beyond Hyderabad and its surrounding environs, in particular, Rangareddy district, the report, however, said there are no clear estimates about the extent of real estate sector investments or business.
Pointing out that revenue to the State due from property transferred is an indication of the location of this activity, it mentioned that Hyderabad's share declined steadily from 17 per cent in 2004-05 to 11 per cent in 2008-09. Over the same period, Rangareddy's share has been around 30 per cent, starting in 2005-06.
Together the two districts account for over 40 per cent of the total revenues from property transferred.
Referring to the growth of IT and ITES, the report said that Hyderabad has grown as the fifth largest centre after Bangalore, Mumbai, the National Capital Region and Chennai and much ahead of Pune and Kolkata. While there are local investors in IT and ITES sector (with the infamous Satyam being a leading but not typical example), the composition of the firms established in the city is largely national and international in character with over a 100 distinct firms. As such, the industry is connected more to the national (through investment) and global economy ( through market) than it is to the regional economy.