Real estate in Hyderabad and other parts of Telangana has seen a major revival over the last 3-4 years. This has led to a major increase in sales volumes for apartments and open plots alike. The prices of land increased by close to 20% over the last year while prices went up by approximately 30% for residential apartments over the last 4 years or so. Sales volumes have also increased by around 10-12% annually since the year 2014 as per reports.
The real estate sector is currently booming in Hyderabad and other parts of Telangana and land prices have increased considerably as a result. The boom in the sector is expected to remain for 3-4 years as per experts. Land prices are increasing almost everywhere in Hyderabad and other parts of the State with higher demand according to experts. Demand has also increased hugely for commercial real estate and finding the right space is tough for companies with so many offices finding takers swiftly. In a recent deal, the Gowra Group forked out a record amount of Rs. 42.59 crore per acre for a plot located in Hitech City’s Raidurg that was auctioned by the TSIIC (Telangana State Industrial Infrastructure Corporation) last year.
There may be several such big-ticket deals in the offing for Hyderabad and Telangana in general. The realty sector was seeing a slump in the past on account of uncertainty linked to various factors. However, with political stability and the Government emphasizing on widespread infrastructural development and uninterrupted power supply throughout the city, the realty sector is seeing massive gains. The new TS-iPASS industrial policy released by the Telangana Government back in the year 2015 and efforts to improve law and order have also contributed towards the boom in real estate. This has also been aided by the innumerable jobs created in the IT and industrial sectors.
TS-iPASS has helped Telangana draw considerable investments in the IT and industrial categories. There have been huge employment opportunities created as a result. Prices of apartments have even increased by approximately 10-12% annually and there has been appreciation of around 35% as per reports. Hyderabad also offers a distinct cost benefit as compared to other metros and prices in the city are approximately 50-60% affordable in comparison to Bangalore. Some experts also feel that the huge increase in realty prices suddenly can be attributed to the correction in prices during the agitation to form Telangana.
Land and apartment prices fell for more than 4 years throughout this agitation. This trend is now reversing with more political stability and infrastructural growth. The Government is also working on lowering traffic congestion which will lead to a further boost for real estate. The Government has also benefited from this real estate boom and for FY2017-18, income from registrations of property increased to Rs. 4, 202 crore as compared to around Rs. 3, 105 crore for FY2015-16.
