With commercial real estate investments fuelling Hyderabad’s real estate sector, land rates in Hyderabad’s outskirts have seen an exponential rise in the past year. Leading the growth are suburbs along Hyderabad’s IT corridors, such as Kukatpally and Kompally. Significant growth has also been witnessed in upcoming IT destinations including Miyapur, Kollur and Tellapur. Prime land in Kompally has reached an all-time high of Rs 26 crore per acre from Rs 12 crore per acre last year.
The massive jump in land rates in Hyderabad’s outskirts are due to better connectivity, new infrastructure projects and investment-friendly policies of the state government. Driven by government stability and robust growth in commercial and residential sectors, investors are gaining confidence in real estate as a primary investment option.
While land rates are the highest in premium locations like Banjara Hills and Jubilee Hills, the growth has been slow due to unavailability of large land parcels and limited scope for new ventures. Hyderabad outskirts, on the other hand, have the advantage of space, connectivity and affordability.
Affordable Land Rates
Low-priced plots in Hyderabad outskirts are a preferred option, as they allow a greater scope for price appreciation. In fact, the recent increase in land rates in Hyderabad can be attributed to its comparative affordability at a time when excessively overvalued markets in other India metros are seeing corrections in land rates. Comparing the prices with the overvalued markets of Delhi and Mumbai gives Hyderabad a distinct advantage.
Growing Price Trends
Despite the slowdown in the real estate market since 2014, Hyderabad has continued to show steady growth. Property prices in Hyderabad increased by 17% at a time when rates either fell or increased only marginally in other major cities. Hyderabad has consistently defied the trend by showing increased sales. This is due to growing commercial development as more and more corporations choose Hyderabad for their India headquarters and the resulting migration to the city. This creates a strong and consistent resale market for plots in Hyderabad.
Availability Of Space
For those wanting to buy plots in Hyderabad and reap the benefit of the highly rewarding real estate market, Hyderabad outskirts are a strong option. The suburbs of Hyderabad are developing at a rapid pace due to the expansive availability of space. They are considered as lucrative property markets in the making due to their proximity to the Outer Ring Road which connects the outskirts to the rest of the city. As connectivity and the commercial sector continue to develop, it will further heighten the appeal of these localities as top investment destinations in years to come.
Infrastructure And Connectivity
Driving the growth in land rates in Hyderabad outskirts are infrastructural factors. Investors will continue betting on Hyderabad’s real estate growth simply for the fact that there are planned infrastructural developments. A major infrastructural factor has been the Hyderabad Metro rail project. With a 56-km operational stretch, the Hyderabad Metro has become India’s second-largest Metro Rail network, next only to Delhi. As it expands its network throughout the city, it will encourage growth in emerging Hyderabad outskirts. To ease traffic conditions within and around the city and to curb pollution, the government has also allocated funds for building a 363-km regional ring road (RRR) in Hyderabad. The state government is also heavily investing in skywalks, flyovers, underground cabling, stormwater drains and development of green spaces across Hyderabad.
Quality Of Life
The growing popularity of Hyderabad outskirts can also be explained by the fact that quality of life in Hyderabad is one of the best in India. The Mercer’s Quality of Living survey ranks Hyderabad as the best city to live in India. Furthermore, according to numerous reports, Hyderabad has comparatively less air pollution than most cities in India. Buying plots in Hyderabad outskirts are an investment in Hyderabad’s high-quality lifestyle.