How Policy Reforms Make Hyderabad An Investment Destination

Proactive governance, business-friendly policies, and economic stability make Telangana one of the most attractive destinations for real estate development. For over a decade, Hyderabad has been one of the strongest real estate markets in India primarily due to the city’s developed commercial infrastructure. The state capital’s position as headquarters to many leading IT/ITeS companies has had a direct impact on Telangana’s enormous growth. Importantly, Telangana is a consistent leader on India’s EoDB (Ease of Doing Business) index. In addition to IT, other sectors including manufacturing, defense and aerospace, financial services, engineering, pharma and hospitality are all flourishing in the state. As more organisations establish their presence in the state, this creates an enormous job market and an equally enormous requirement for housing and commercial hubs.

 

The commercial real estate market in Telangana has grown amidst policy reforms, institutional investments, foreign partnerships and growth in the services sector. The sector has been bolstered by government initiatives such as Make in India and wider reforms in the realty sector including RERA and the emergence of REITs. While Telangana’s transformation into a global commercial hub has been immense, the potential for further growth is even larger.

 

To keep up with increased migration to the state, the Telangana government has invested heavily in infrastructure facilities and connectivity, which improve the overall real estate climate and ease of doing business. Industrial parks including the 20-acre Smartron data centre campus, Aerospace Park SEZ, the Gaming & Animation Park, Pharma City, and the Life Sciences & Medical Devices Park have attracted investments and played a major role in the state’s rapid development. Telangana’s development is further bolstered by the Rajiv Gandhi International Airport, which is renowned as one of the best airports in the world.

 

The pro-business policies give Telangana a clear edge in commercial development over other states. In order to streamline approvals, the Telangana State Industrial Project Approval and Self-Certification System, which was launched in 2015, limits the approval time frame to a maximum of 30 days.

 

In late 2019, the Telangana government launched TS-bPass, an integrated online portal for further streamlining the approval process. This initiative ensures that building permissions including Fire Services, Electricity, Traffic and Planning departments are processed more quickly, resulting in reduced construction costs, thereby reducing overall property costs. It also holds officials accountable, thus making the process more transparent.

 

At the centre of Telangana’s development campaign, Hyderabad has undergone an orchestrated transformation into a global hub. The creation of growth corridors and integrated townships have bolstered the city’s economic landscape. In order to decrease urban congestion and promote the planned development of integrated townships, the Telangana government created the Telangana Comprehensive Integrated Township Policy Rules 2020.  This proposes that township projects will be fully integrated hubs including residential, commercial, educational, healthcare, and transport facilities. The state government has also proposed the concept of “Look East” which will develop a new IT corridor in the eastern part of Hyderabad. The goal is to balance the city’s commercial infrastructure growth.

 

Telangana is viewed favourably by investors because of access to world-class companies, world-class infrastructure, and world-class residences – all without the burden of inflated living costs. In fact, according to Mercer’s Quality of Living survey, Hyderabad has consistently held the top spot among all Indian metros.

Last updated on July 26, 2021

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