A Brief Insight: Why do PG hostel owners in Hyderabad need support and resurrection?
Hyderabad, also known as the “City of Gardens,” has emerged as the next IT hub right after Bangalore. With its seamless connectivity both via railways and highways, the city is a favorite spot for the youth of the nation due to its convenience and reasons- on-site jobs or higher education. Being the leading destination of IT and IT-enabled services with notable universities of the nation, the city witnessed a surged demand for rental spaces during the pre-COVID times.
The Impact Of Work-From-Home on PG Owners
As of now, any owner of a PG in Hyderabad is in distress. They are joining the managers of IT firms in Hyderabad who are raising their voices against work-from-home culture. Reports suggest that all hostels in the IT corridor have less than 20% occupancy. This eventually turned out to be a wake-up call to the members of the IT Corridor Hostel Association.
Recently, members of the IT Corridor Hostel Association took part in a protest rally in front of Infosys, Pocharam. It was known from the association’s president that, anticipating the rush of newbies into the city and the demand for PG hostels during the pre-pandemic times, they had taken significant loans to cater to the situation. But now, they are overburdened with EMIs and are not getting any profit because the tech giants are still allowing their employees to work from home. They demand that this needs to end as the government has allotted plots to companies at a subsidized rate for the benefit of all and not just a particular company.
On the other hand, building owners who have allowed hostels to occupy their spaces are also suffering from a great financial loss. Some say that two of their three buildings are occupied, while others say the ratio is more brutal.
The Impact on the Rental Market in Hyderabad
The prevalence of work-from-home culture is hurting not only the rental market in Hyderabad but also the neighborhood businesses, chefs, housekeepers, and merchants because many of them depend on the IT workforce for their income.
The current scenario- around 4,500 hostels in Greater Hyderabad are mostly reliant on techies, but while post-pandemic occupancy has increased in locations like Hitec City, other districts are experiencing a decline as a result of layoffs and a lack of new hires. It is seen that around 30% of the 200 beds in one PG hostel are occupied, which reflects the issues faced by other hostels in the area. As a result, the management decided to cut back on the cooking and housekeeping staff.
Importance of Renting a PG in Hyderabad
So why is it important to support the rental housing system in Hyderabad and the relevant community? Let’s see-
- Driving factor towards the state’s economy–
The rental market is a driver of the state’s (Telangana) economy. If we look at the overall ecosystem of a rental housing apartment in Hyderabad, we will see that it is generating employment for a plethora of people. For example, the housekeeping, cooking, security, staff, and other managerial staff all rely on the monthly turnover of the rental apartment. From time to time as the demand increases, so as the ask for more human resources and then a call for the new hiring process. Get it? It’s all relative.
The overall real estate market of Hyderabad is a golden tooth for investors, too. The strategic location advantage, with thriving employment hubs and educational excellence, makes it a win-win situation for an investor at any time of the year. The prominent hubs are- Hitec City, Gachibowli, Banjara Hills, and Manikonda, which drive the city’s economy. According to some sources, the city’s GDP growth consistently outruns the national average, with a remarkable annual growth rate of around 2.70%.
- Work from Office culture is coming back.
You see, some regions of Hyderabad might be affected by the layoffs of a few tech giants. However, the contradictory part is that the work-from-office culture is getting back into full motion. In fact, as mentioned earlier, regions like Hitech City are gaining momentum since the housing complexes are in high demand for IT professionals and techies.
So, imagine a Hyderabad where one-by-one rental property owners boycott the idea of renting due to stunted growth, and on the other end, the culture of work-from-office getting back. Where will the pool of youth go? Will they be able to meet the higher demands from certain property owners in the rental market? It will be just like Jio, Airtel, and Vodafone-Idea in the telephone market- a game of monopoly. This we don’t want, right?
- Wellbeing of the emerging demographic–
It’s quite clear that IT professionals dominate the rental accommodations in Hyderabad. But there is also a significant number of students who shift to this region, every year due to higher studies. So, if they find scarcity in rental accommodations, they will be bound to go by the on-campus hostels. And we all know how they are- full of strict rules and no privacy at all. This not only depletes the enthusiasm of sensitive students but affects their learning to a great degree. To some extent, working professionals also don’t prefer a place that doesn’t have privacy.
- Moving towards sustainability-
Stanza living promotes optimum usage of resources and minimal carbon footprint for people who pose as possible tenants. Suppose a group of techies decides to live in a PG in Hyderabad. Obviously, it will have a common area with a single fan, an AC, and a light. Now if these people don’t get a shared living facility, they will ultimately end up with individual rooms, and the amount of electricity consumption will go up, leading to a higher carbon footprint.
- Sense of Diversity and Inclusion–
White-collar professionals need to understand and promote diversity and inclusion in their office. Otherwise, where will they start to practice and learn? It’s their home and the place they live, right? PG accommodations are the greatest teacher for practicing this sustainable culture and maintaining a balance between privacy and being social.
- Sense of Ownership-
When we choose PG accommodation, we develop a sense of ownership in our lives. This creates a greater stake for students who are shifting to a new city to pursue higher education. Some may argue that on-campus hostels also provide an environment in which students can be self-reliant, but they still don’t allow students to do the cooking and other chores like ironing. So, the best place to be self-reliant is by yourself in a standard PG accommodation.
The survival of PG hostel owners in Hyderabad hinges on the city’s return to a robust work-from-office culture, where rental housing platforms like Stanza Living are anticipating the surge in the days to come. Meanwhile, the absence of the young demographic has left a hole in the economy that has yet to be resurrected.
Supporting the rental housing exosystem is more critical than ever before- not just for owners but for the many jobs and services it sustains. As Hyderabad’s tech-driven growth recommences, the PG accommodation market requires timely intervention to shut out a monopoly, ensuring sustainable housing for the youth and fostering a thriving, inclusive community.
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