Addition of new homes in the city's mid-segment residential real estate market saw a three-fold jump last year, mainly because of political stability in the region.
Hyderabad's real estate sector had taken a backseat during the agitations that preceded the formation of the new state of Telangana.
Real estate developers added 9,800 new units in 2016, up 200% from a year ago, according to data from Cushman & Wakefield's 2016 residential report, as political stability in the region helped speed up government clearances, which in turn saw a surge in demand and absorption of office space by firms in the IT, ITeS and BFSI sectors.
"The improved launches in this segment is mainly on account of government agencies like the GHMC and HMDA becoming proactive in providing clearances with the new government taking in and political stability setting in the state," said P Rama Krishna Rao, general secretary , Hyderabad chapter of Confederation of Real Estate Developers' Association of India (CREDAI).
According to property consultant Knight Frank, recovery in the real estate market had given Hyderabad a slip after the global financial crisis in 2008, mainly due to statehood-related agitations.
"Launches had dropped by almost 25% since 2011-2014 due to political instability in the state, while few launches were getting stuck due to delays in project approval," said a developer who did not want to be named.
Industry observers said certain initiatives taken by the Telangana government in 2015 helped ease the regulatory hurdles for the real estate sector. While two-thirds of the new residential units are located close to office markets of Madhapur, Hitec City and Gachibowli, more than a third of the new launches were from My Home group, which unveiled two large residential projects.
Rao of CREDAI said the government also slashed the non-agricultural land assessment (NALA) tax from 9% to 3%, apart from relaxing norms for highrise buildings.
Hyderabad has seen technology giants like Apple, Google and Amazon pick up large office spaces over the last few months. The city saw the second-largest office space absorption last year after Bengaluru, apart from the lowest vacancy levels for office space among the top seven metros, said a report by Cushman & Wakefield.
The city also saw increased launches in the retail real estate market, higher than Mumbai and Chennai, with eight large malls set to come up in 2017 and 2018.