Hyderabad: With real estate reaching saturation point in cities such as New Delhi and Mumbai, builders and developers are investing in Hyderabad as prices here are more affordable.
This is evident in HMDA’s half yearly report which shows that the HMDA has accorded twice the number of building and layout permissions scattered around the city as it has done in previous years. Unlike previously, the permission has been given evenly to locations in the north, south, east and west of the city.
Several building and layout permissions have been reportedly given in Uppal, Ghatkesar, Medchal highway, Narapally, and Kompally. Other areas on the city’s outskirts have also seen much activity.
Realtors say the factors contributing to this rapid development are a stable government, shift of industries to the northern part of the city, the Pharma City in the southern part, Metro Rail and development of the IT sector in the eastern parts.
HMDA’s town planning department had issued 1,100 building permissions in financial year 2017-18 which has gone up to 2,524 permissions in the six months from June 2018. An official in the department said that the planning department alone generated Rs 526.35 crore in six months, when it had collected just Rs 299.45 crore in all of the previous financial year.
Besides building permission, the HMDA has issued 18 no-objection certificates for setting up petrol bunks, with four still being processed.
HMDA’s Development Permission Management System has approved 458 draft layouts, 18 draft layouts for constructing gated communities, one for setting up clubhouse, 53 occupancy certificates, 101 building permissions for setting up industries through TS-iPass and 62 layouts in six months.
The official quoted above claimed that since there were no open lands in the GHMC area, citizens and builders were buying land in HMDA’s jurisdiction since land here is cheaper than in the core city. He said most of the approved layouts were surrounding nearby towns or headquarters of newly formed districts. These towns will be developed into satellite townships which will eventually have shopping malls, multiplexes, open spaces, a transport system, and provide employment opportunities.
Most of the layout and building permissions have been given around Ghatkesar, Bhongir, Medchal, Uppal, Nizampet, Bachupally, Adibatla and Shamshabad.
Mr Gummi Ram Reddy, president of the Confederation of Real Estate Developers Association of India (Credai), Telangana, said there has been a 20 per cent growth in the real estate sector in the city since the formation of Telangana state. He said that a stable government, affordability of land, 24/7 electricity and an expanding IT sector and the announcement of the Pharma City have not only attracted investors from other metro cities in the country, but also from across the globe.
“The TS-iPass has given a major boost to setting up industries which also attracted several industrialists to invest in the city. The real estate sector has already seen a growth of 25 per cent during the current financial year. The rise has been seen in both residential and commercial sectors,” Mr Ram Reddy added.
Mr C. Sekhar Reddy, former national president of Credai, said land value has seen a steady growth since 2017. On an average, land value has increased by Rs 4,000 to Rs 5,000 per sq. yard for residential areas and Rs 4,000 to Rs 6,000 in commercial areas, and in extraordinary cases it has also touched Rs 8,000 in the western part of the city where the IT sector has been rapidly expanding. Mr Sekhar Reddy said that the land value at Mokila near Shankarpally had nearly doubled while the remaining area on the outskirts had seen 15 per cent to 20 per cent increase in land value. He said that investors are getting 80 per cent returns on their investments, which has been good for the development of the city.