Is this a matter of concern for developers, or is it a point to be optimistic?

As you might have observed, the land prices in Hyderabad have had a sharp rise in the past few years. And you might be wondering why. A few localities in the state have their land prices escalating to as much as 100%. Kukatpally,uppal bagath, Ameerpet, Banjara Hills, Miyapur, and the city’s Madhapur Financial District-Gachibowli are areas where such a steep rise occurs.

the dramatic increase in capital expenditure over the years, purchasing a property in Hyderabad becomes almost unattainable.” There are many possible reasons for it.

The government stability in the state is one of the significant factors. The city has also observed a boom in commercial and residential growth and development.  The city is booming in fueling big-ticket investments because of the investor-friendly policies of the Telangana government. Due to those policies, the state has attracted several renowned companies to expand and set up their operations in Hyderabad in the last few years.

In addition to this, the state recently is a center of attraction for several international brands who have coupled up their properties for office space and other commercial uses. And as we know in economics, as the demand for a product goes up, the prices increase. This is because of the scope’s availability that the owners can earn more by selling a property to X than to Y.

This also increases the sellers’ options to sell, leaving the investors and buyers to bid amongst each other. And the bidding is never under control. This is probably why the lands’ prices have gone up to the extent that purchasing estates have become too expensive. And having all these occur in the past 2 years or so, the rise is observed to as a very steep and sharp one. If this occurred had spread over a long period, it might not have been this shocking. But as these rapid changes have happened in the past two years, the difference is dramatic.

The investments in Hyderabad have gone up by as much as Rs. 10,000 crore between 2015 to 2019. Bidding was done on open grounds and lands and as people see land and property as an ever-increasing form of asset and investment, they are biased to buoy the estates at any costs. Thus, the bidding goes higher and higher.

Why these investments though?

It is because the city is on its way to progress, breaking every groundbreaker. The infrastructure and real estate development of the town has changed drastically. It now has Flyovers, skywalks, metro rail service, tall residential towers, world-class office spaces, and much more.

  • Affordable price

Hyderabad is also affordable relative to other developing cities, be it rental properties, residences, or plots. In certain areas within 10 km of the large IT hubs, land values are still quoted at 4500/sft, which is far more accessible. This is contributing to a rise in demand for Hyderabad investment apartments.

Land in Hyderabad is now available at a much cheaper cost, which has inspired developers to purchase property and build residential projects.

  • Big IT giants, Blue Chip firms, and the explosion of start-ups

International geeks such as  Apple, Microsoft, Deloitte, Capgemini, Genpact, Amazon Data Center, and other blue-chip firms such as TCS, Wipro, and Infosys are expanding their Hyderabad footprint. Companies from across the planet are attracted to invest in Hyderabad by the abundance of cheap landholdings and reasonably priced co-working facilities. One Plus has revealed that the largest store in the world will shortly operate in Hyderabad.

  • Improvement in connectivity

Hyderabad has excellent commuting facilities as compared to other metropolitan cities, which are quite chaotic.

  • The traffic condition of Hyderabad
  • Government policies on the investment of real estate are quite convenient and investor and developer-friendly