How is South Hyderabad Becoming the Best Bet for Real-Estate Investors?
Hyderabad has become India’s second largest & most-expensive real-estate economy amongst India’s top 8 metropolitan cities – Mumbai, New Delhi, Hyderabad, Chennai, Kolkata, Pune, Bengaluru & Ahmedabad. The average cost of residential property in Hyderabad was around Rs. 5,700 to Rs. 6,000, yet the city registered a huge increase in sales compared to the previous quarter & last year. A majority of these properties & projects that have contributed to Hyderabad’s outstanding real-estate numbers have been in & around the western region of Hyderabad – Gandipet, Miyapur, Tellapur, Gachibowli, Madhapur, Kondapur etc. As the number of projects saturate & prices are on the rise in western Hyderabad, the southern areas of Hyderabad are now shaping up to be the next reliable bet for investors.
Hyderabad currently also has the lowest inventory overhand of 25 months amongst the top 8 metros of India which means there is fewer number of projects with unsold units, lower inventory overhand indicates good growth of the market. Developers & banks are also facilitating this growth by helping buyers purchase property by providing low-interest rate loans. Sales & prices of commercial developments has increased over the past quarter in Hyderabad. This rapid growth of the market has been centered mainly around the western parts of Hyderabad as mentioned. As development increases in southern parts of Hyderabad, better connectivity and upcoming commercial projects have a major role to play in positioning South Hyderabad as the next big real-estate hotspot.
The demand for residential & commercial units has skyrocketed in 2021 in the western parts of Hyderabad, this means the combination of rising prices & saturation of new project launches will cause a shift for customers to look for more affordable options – provided by the southern parts of Hyderabad. Localities of Shamshabad, Attapur, Pocharam, Shadnagar, Maheshwaran, Rajendra Nagar etc. have witnessed a sharp boost in demand for residential properties in the last couple of years. The proximity of the south Hyderabad region to the Rajiv Gandhi International Airport (RGIA) is also a huge advantage. Investors now feel it is better to invest now in projects & plots in southern Hyderabad to gain from huge profits once the prices shoot up post development.
Factors Supporting & Influencing Growth of South Hyderabad
ITIR – Soon after the RGIA became operational in 2008, the Central Government of India established a plan to Information Technology Investment Regions (ITIRs) around the country. The proposal to setup ITIRs for Hyderabad & 5 zones around the city were identified, Zone 1 was planned around Cyberabad, Zone 2 was planned around South Hyderabad and is currently heading towards development of Special Economic Zones (SEZs) & existing industrial areas – Hardware Park, Fab City & also development of areas surrounding the international airport/
The size of Zone 2 of ITIR which is focusing on development of South Hyderabad is of 19,575 acres out of which 9,500 acres is marked as processing area for IT, ITeS, EHM units & their infrastructure. The remaining area which is marked as non-processing area is allotted towards residential, retail, institutional & social developments.
The processing area will have 2 types of development – Greenfield & Brownfield development. Brownfield development means advancement of existing development (commercial & industrial units) and an area of 385 acres comes under this. The remaining 9.115 acres will be considered as Greenfield development meaning development from scratch – out of this area, 6,550 acres has been marked for hardware development & the rest 2,565 acres is for IT & software development purposes.
This ITIR plan is the key to the growth of South Hyderabad & in a few years, the growth in South Hyderabad is expected to out-grow the pace of development in the western areas of Hyderabad. Cheaper cost of plots & abundance of available land will increase the growth of south Hyderabad at a faster rate.
Road Development – To aid the development in the southern regions of Hyderabad, the Telangana government is laying down 120-feet wide roads around the international airport & Maheshwaram areas, the 120-feet wide roads will also have 30-feet wide service roads on both sides. The proposal to widen village roads is also under consideration. The government is also planning to make the arterial & sub-arterial roads into 6-lane & 4-lane wide roads respectively. This will improve connectivity & make the areas future proof when there is higher amount of traffic.
MMTS & Metro Rail Extension – Hyderabad’s Multi-Modal Transport System (MMTS) local train service which currently networks the city of Hyderabad and is used by lakhs of commuters to frequent between their workplaces & other areas. There are currently 3 main lines of the MMTS service – Lingampally – Hyderabad (Nampally), Lingampally – Falaknuma & Falaknuma – Hyderabad. Falaknuma is the closest MMTS station to south Hyderabad but the railway line extends to Umdanagar & beyond to join into the railway line to Bengaluru. The government has planned to extend the MMTS to the Rajiv Gandhi International Airport by building new railway lines from Umdanagar towards Shamshabad.
The Hyderabad Metro Rail is also being planned to extend until the RGIA. This is will mean residents in south Hyderabad will have better connectivity into the city.
Highway Connections – The Telangana government has planned to upgrade the connecting road between Sirsailam Highway (NH 765) & Nagarjuna Sagar Highway (NH 565) into 4-lane wide road at an estimated cost of Rs. 180-Rs. 200 crores and maybe even into 6-lane roads if needed.
These factors mentioned above will contribute towards the growth of South Hyderabad & the smart investors are already investing in property in these regions. We have a few projects available in South Hyderabad too – check them out on website at www,kfortune,in
Our Support team is here to help
Need to get in touch with the team?
We are eager to assist you.