HYDERABAD: Home to rows of sprawling bungalows, while Jubilee Hills continues to be Hyderabad’s most expensive realty pocket, it’s the city’s periphery that’s witnessing a faster escalation in land values, of late.
Market estimates show that rates across areas such as Shadnagar, Kothur, Medchal that hovered in the Rs 1 crore to Rs 2 crore per acre range until last year, have more than doubled now to touch Rs 3.5 crore to Rs 4 crore per acre. Each of these areas are at least 30 to 40 km (average) away from Hyderabad’s IT corridor – the Gachibowli-Financial District stretch. Land rates in pockets within a 10-km radius of this tech hub, of course, have crossed the Rs 50 crore mark. Some land owners in Kokapet, for instance, are believed to be quoting up to Rs 60 crore for an acre. It was limited to Rs 30 crore to Rs 35 crore until recently.
In comparison, Jubilee Hills has seen little change in value. It continues to remain at Rs 1.2 lakh to Rs 1.5 lakh per square yard — about Rs 65 crore to Rs 70 crore an acre – with some land deals hitting Rs 2 lakh per square yard. Since land parcels here are small in size, the calculations are usually done in square yards. “Jubilee Hills is certainly is the most sought-after address among Hyderabad’s upwardly mobile. But the deals here are far and few between. Hence, the rates remain unchanged. Also, there’s no permission for high-rises in this pocket; that limits construction activity,” said a prominent builder attributing the rise in the peripherals to Hyderabad’s growth and unlimited FSI (floor space index) — only city in India where builders are allowed to construct as much as they want on a piece of land.
According to Veera Babu, managing director of Cushman & Wakefield (Hyderabad) the robust momentum in commercial office/residential/industrial markets has resulted in a steep rise in land values over the last four-five years. “A positive outlook on rapid growth, expansion beyond ORR in all directions is driving a large part of the demand, and as always, higher investor interest leads to speculation. Besides NRIs, investors (as well as end-users) from neighbouring states and other parts of the country are also pushing the price curve steeply upwards, causing an unprecedented short-term price movement in the market,” he said.