Realty destination - Hyderabad
Vadaga, City Lead – Hyderabad, ANAROCK Property Consultants
Buying a plot of land can be a very
attractive investment option, considering the potentially high resale value of
sufficiently large plots as compared to apartments. That said, investing in
land is a very different ballgame than investing in built-up properties.
For one, the required investment
horizon is much longer than for apartments – land investors must ideally hold
plots for anything between 7-12 years. Secondly, buying land with the purpose
of selling it a housing developer sometime in the future is much more
cost-intensive than buying a flat, as plots need to be big enough to
accommodate a full-fledged housing project. Thirdly, as plots need to be held
for several years, there can be the danger of encroachment.
Nevertheless, since land is the basis
of all real estate development, it can be a very profitable investment if one
approaches it with the right temperament and capital - and, equally
importantly, knows where to buy it.
What’s pushing plotted
development: Hyderabad lends itself particularly well to land investment.
The city’s housing sector has been growing consistently - with returning
political stability, Hyderabad is witnessing increased demand for residential
property. More importantly from a land investment perspective, its real estate
market is quickly expanding to the fringes of the city where land is still not
In fact, compared to other metros, land
in Hyderabad is still relatively affordable and thus within the reach of many
buyers and investors. Plotted developments in the peripheral areas have taken
off in a big way.
Several proactive steps taken by the
state government have improved the prospects of many micro-markets, making
investment in land an attractive proposition. Some of the recent government
decisions that can positively impact Hyderabad's land market are:
- Formation of new municipal corporations
To put a check on illegal land layouts
and to promote planned development, seven municipal corporations will be formed
adjoining Greater Hyderabad. Corporations will be formed for Badangpet, Bandlaguda, Peerzadiguda, Jawaharnagar, Meerpet, Boduppaland Nizampet.
Most of these areas are within Hyderabad's Outer Ring Road (ORR) and have good
interoperability with Greater Hyderabad Municipal Corporation.
- Announcement of Pharma City and Yadadri Temple
Plotted development in Hyderabad is
likely to benefit greatly from mega initiatives such as Pharma City and Yadadri Development
Plan. The Pharma City coming up on 19,000 acres in Mucherla is
expected to attract many global and domestic pharma companies and provide
employment to lakhs of professionals in the city. At the same time, the
development of Yadadri Temple City coming up in Yadagiri Gutta
will entail construction of new roads, buildings and other facilities for
The government plans to add 280 km of
roads to the ORR to plug the missing links on this buzzing growth corridor. The
Hyderabad Road Development Corporation Limited (HRDCL) has been entrusted with
the responsibility of constructing this new network of roads.
- Building permission on plots streamlined
The government recently announced that
building permissions for plots sized between 75 sq. m. and 500 sq. m. will be
processed through an online self-certification system. For plots larger than
500 sq. m., there will be a single-window system of applications comprising of
only one application form which can be submitted online.
Upcoming Investment Destinations
In light of the above developments,
several localities - mostly in the affordable and peripheral areas of Hyderabad
- are emerging as land investment hubs whose land values start as low as even
INR 400 per sq. ft. and go as high as INR 3,600 per sq. ft.
- Mokila - Due
to its proximity to the Gachibowli and the commercial hubs of West
Hyderabad, real estate inMokila is on the upswing. The Outer Ring
Road connects Mokila to the rest of the city and apart from
plots, the demand for villas and apartments is also high in this
affordable destination. Land values hover betweenINR 1,600 to INR 2,000
per sq. ft.
- Shankarpally - Located
in the vicinity of Cyberabad, this location is a big draw for IT
professionals. Fresh green environs, solid infrastructure and limited
traffic have drawn buyers to purchase land in this suburb of Hyderabad
whose prices start from INR 1,650 per sq. ft. and go up to INR
2,200 per sq. ft. The proposed 4-lane highway and 100 feet road will
bring Cyberabad 'closer' to Shankarpally.
- Shad Nagar - Shad Nagar has a high supply of
residential plots and attracts buyers due to its proximity to the
International Airport and upcoming Special Economic Zone (SEZ). Land
values are significantly lower – between INR 500 to INR 800 per
sq. ft. It also has good schools, a hospital and a police station
nearby. Apart from the ORR, Shad Nagar is also connected to the rest of
Hyderabad via the Shad Nagar Railway Station.
- Maheshwaram - Well-connected
to the Srisailam and Bengaluru Highway, Maheshwaram is
finding favour with many professionals - and prospective property buyers -
due to its affordable land prices. Located in theRangareddy district
of South Hyderabad, the area is still affordable compared to other central
localities near IT Hubs. The government has shown interest in Maheshwaram due
to the availability of land parcels and its connectivity to two major
highways. As the area is still in its developmental stage, it provides
myriad land options at reasonable rates to buyers - between INR
850 to INR 1,400 per sq. ft.
- Srisailam Highway - Srisailam Highway,
located in the southern part of Hyderabad, scores high due to its
proximity to the Rajiv Gandhi International Airport. The stretch includes
many upcoming centres such asBarkas, Venkatapuram and Tukkuguda.
It is also located close to the TCS special economic zone (SEZ) atAdibatla.
Moreover, with many SEZs planned along Srisailam Highway, the
locality’s prospects are bright. Land values here are anywhere
between INR 500 to INR 1,000 per sq. ft.
- Medchal - Connected
to Hyderabad via the Outer Ring Road, Medchal has witnessed
increasing real estate activity over the last few years. The new district
of Medchal – Malkajgiri houses a range of industries
as well as educational institutions and has ample natural resources. It is
a well-connected district with three national highways and two state
highways apart from many roadways running across the district. The
district is often regarded as the link between Hyderabad and North
Telangana. Land values are slightly higher here in comparison and range
between INR 1,750 to INR 3,000 per sq. ft.
- Kompally - Kompally is
an emerging residential hub located in the north of Hyderabad. From a
small township on the fringes of the city to a promising educational,
industrial and residential centre, Kompally is now on the radar
of many property buyers. It is well-connected to HITEC City and Mahindra
Tech Park and offers affordable homes that cater to young professionals.
The presence of vast expanses of developable land is attracting developers
and investors alike. However, land prices range between INR 2,000
to INR 3,600 per sq. ft. – still affordable in comparison to many
other areas in the city.
- Adibatla - Located
between Nagarjuna Sagar Highway and Srisailam Highway along the
ORR, Adibatla in South Hyderabad has a high supply of plotted
developments ranging anywhere between INR 1,300 to INR 2,200 per
sq. ft. The Shamshabad-Adibatla stretch has picked up due to
IT, the aviation industry and its affordable prices. Emerging as a new IT
hub, Adibatla is part of the Information Technology Investment
Region (ITIR) project and has garnered interest from companies like TCS,
Cognizant, Google, etc.
- Shameerpet - The
area has also seen burgeoning real estate activity after the establishment
of Genome Valley, which houses some of the biggest names in biomedical
research, technology and manufacturing.Shameerpet is back in the
reckoning since the inauguration of the Outer Ring Road (ORR) betweenShameerpet to Ghatkesar.
This operationalized the entire 158-kilometre ORR and has helped improve
the prospects of the locality. Land values start from INR 1,100
per sq. ft. and go all the way upto INR 1,900 per
- Isnapur - Located only an hour away from Secunderabad and
Hyderabad, the area is popular due to its prime location and affordable
rates. Moreover, National Highway 65 directly connects Isnapur to the city
and ORR, making it a hot favourite among property buyers. A wide range of
plots are available in Isnapur priced between INR 1,200 to INR
2,300 per sq. ft. and many are located within gated communities
providing a safe environment and several amenities.
- Patancheru - Patancheru falls
in an industrial zone located about 32 kilometres from the city centre on
the Hyderabad-Solapur highway. The area is about 18 kilometres from HITEC
city and is favoured by property buyers looking for affordable land
opportunities which are priced between INR 1,300 to INR 2,400 per
sq. ft.The locality is likely to benefit from the upcoming Regional
Ring road from Sangareddy, which is just 25 KM from Patancheru.
- Yadadri, Ghatkesar (Warangal
Highway) - Situated along the Warangal-Hyderabad Highway, YadagirIgutta is
popular with real estate buyers and investors. The area has been allocated
a separate Rs 100 crore budget even as the Yadagiri Gutta
Development Authority (YDA) is working continuously on its development.
The state government has proposed a Land Pooling Scheme (LPS) along the
Warangal and Vijayawada highways to accelerate real estate growth. As and
when the proposal gets approved, these areas will witness high
appreciation in land values. As of now, the prices are quite affordable
and range between INR 400 to INR 700 per sq. ft.
The viability of these areas also makes
investment in built-up housing projects there very attractive, since it
primarily housing demand which drives the growth of land rates. These are major
new growth corridors that will see increasing interest for both rental and
ownership housing. For investors who prefer plotted developments, these areas
are clear stand-outs on Hyderabad's rapidly growing real estate landscape.