He believes the investment from pension, insurance and other funds will be a game changer for the market.
Implementation of Real Estate (Regulation and Development) Act (RERA) and lower interest rates are expected to drive the change, which will result in money coming at competitive rates and for long term.
"As the real estate becomes more regulated and transparent and as the economy picks up and interest rates come down, many institutional investors will put in their money," he told reporters after inauguration of CBRE's new office here.
While insurance companies, pension funds and various endowment funds of universities in the US and Europe invest a part of their money in real estate market, in India, the LIC, UTI, Provident Fund and Pension Fund India are not investing because of the risk attached and lack of transparency.
He expected that the implementation of RERA will make the market more regulated and bring transparency. The changes will also attract the institutional investment from abroad.
The real estate consultancy firm is bullish on the growth of real estate market in Hyderabad. The sector picked up momentum in the city during last two years and the organised retail market in Hyderabad is expected to touch 10 million square feet by 2019.
The commercial office intake in this information technology hub doubled from 3 million sq feet in 2014 to 6 million square feet in 2016 and is projected to cross 7 million square feet and possibly hit 7.5 million square feet during 2017. This will make it the fastest growing market in the country.
Magazine pointed out that Hyderabad witnessed significant infrastructure developments including metro rail, flyovers, electronic manufacturing clusters and an integrated pharma city. He expects these developments coupled with reforms and policy initiatives by Telangana government to attract more investment to the city.
"Hyderabad is fast emerging as South India's realty hotspot. Political stability, the state government's proactive policies, growing occupier demand, improved infrastructure, quality educational institutions and the availability of a large talent pool have helped bring back attention to the city's real estate market," he said.
Telangana's Minister for Information Technology K. T. Rama Rao, who inaugurated the new office of CBRE, assured the support from the government in further strengthening Telangana as a preferred destination for business and employment.
CBRE, which has its presence in India for 23 years, plans to double its current employee strength of 700 in Hyderabad over next two years.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.