Uncategorized

Rising land prices: A cause of concern for developers in Hyderabad

Hyderabad’s real estate market has a great view of growth which was noticed in recent times, land prices in the city have observed a rapid growth in the last few years. The demand for the property here surged by almost 100 percent in some of the major areas, mainly along the part of the city nearby the IT Corridor of Hyderabad, the city emerged also known to be the most expensive real estate market in the South part of India.

Hyderabad was especially the pouch along the IT Corridor, that had reported massive growth of staggering land prices over the past few years. Reportedly, a few areas in Hyderabad, such as Kukatpally, Ameerpet, Banjara Hills, Miyapur, and the city’s Madhapur Financial District-Gachibowli stretch have witnessed land prices escalating to the tune of 100 percent in recent times.

Due to the proximity to Hyderabad’s IT Corridor, land prices in Kukatpally have reached almost Rs 47-59 crore per acre, whereas, the per sq ft price is over Rs 5,000 per sq ft. While land rates in the Madhapur-Gachibowli stretch vary between Rs 45 crore and Rs 50 crore per acre, the costs are the highest in the

posh residential addresses of Banjara Hills and Jubilee Hills, amounting to Rs 87-94 crore per acre.

What led to the massive price rise in Hyderabad?

Buoyed by investor-friendly policies and infrastructure development initiatives of the Telangana government, several renowned companies expanded their operations in Hyderabad in the last few years. The presence of several international brands, coupled with an increase in office space investments, helped generate immense employment opportunities in the city. This, in turn, led to a rise in the demand for residential apartments and plots in Hyderabad, especially in the last two years. As per a report by JLL, investments in Hyderabad surged more than five times and reached nearly Rs 10,000 crore between 2016 and 2021.

While Hyderabad is one of the most sought-after cities for investing in residential and commercial real estate, escalating land prices are indeed a cause of concern, especially in the West. Moreover, to push sales, the owners need to bring down the prices to a considerable extent so that it is feasible for the developers, as well as the investors, who at present are refraining from investing beyond a certain limit.