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PRICE SPIRAL IN CYBER CITY |
The overall economic development has pushed realty prices in Hyderabad to a new high. |
Realty is the new IT of Hyderabad, if the buzzing action on prices and real estate development is any indication. Hyderabad, which carved its own niche as the cyber-savvy city, is today a hotbed of realty action thanks to overall economic development and sectoral drivers like creation of a greenfield airport, SEZs and semiconductor hub. |
One of the triggers for the real estate boom is the new international airport at Shamshabad, 40km from the heart of the capital city Hyderabad, to be developed by GMR Hyderabad International Airport Development Ltd (GHIAL). A number of large and medium sized developers have announced SEZs, commercial and residential properties in and around the proposed airport. An estimated Rs 30,000 crore worth investment has been announced in Shamshabad so far. The most prestigious of it all being the $3-billion Fabcity project announced by SemIndia. This project touted as the largest foreign direct investment in the country, when functional, will also make Hyderabad the semiconductor hub of the world. |
"In the past when economies were dependent on manufacturing sector, trade and development was centred around ports. Today with the new economy driven with the development of services sector, where goods of high value and low volume are traded, airports are best suited to bring in development", said Mr Srinagesh, chief operating officer, GHIAL. |
The entire stretch will be connected by the 160 km long Outer Ring Road (ORR) which is being constructed with an outlay of Rs 3,500 crore. Connectivity with the city is also taken care of with the 11.5-km flyover, the largest in the country connecting Shamshabad airport with Masab Tank. All these announcements has resulted in the property prices of Shamshabad, once a sleepy town, to shoot up to around Rs 4,500 per sq.yard now as compared to Rs 1,500-2,000 per sq.yard even a year back. |
Apart from these factors the huge headcount addition announced by companies like Microsoft, Google and Kanbay, which have a major presence in the city, is also spurring the appetite of real estate business in the city. |
Residential property business in Hyderabad has also been witnessing dizzy heights with many new villas and luxury condominiums being planned. Property developer Omega Shelters is planning Spanish Villas in the city outskirts that come with a price tag starting from Rs 4 crore and goes up to a whopping Rs 12 crore. Most of these luxury villas have been booked within weeks of the project announcement. |
It is not just the capital that is witnessing growth. Port city Visakhapatnam is also witnessing a real estate frenzy considering the kind of development projects announced there. IT majors like TCS, Wipro and Satyam have announced development centers in Vizag. In fact luxury villas are making way into the port city with real estate consultant Asipac's proposal of developing a 360-house gated community with rain forests as the theme. The price of this European style houses range between Rs 55 lakh and Rs 1.2 crore. Lots of new malls, townships and retail outlets are being planned in Vizag leading to spiraling property prices. |
Some also say that with the issue of separate Telangana state assuming importance, speculations are rife that Vizag could possibly become the new capital of Andhra Pradesh, triggering rise in residential and commercial property prices in the city. While this price rise is a regular phenomenon every time there is a talk of separate Telengana, analysts say that it is only good for the state. |
"Hyderabad will continue to be the IT capital of the state and continue to attract investments. Projects like the new international airport project and the $3-billion Fabcity will continue to come to the city. If Vizag is also going to witness development with these speculations it is good for the entire region", says Anil Kumar Varma, consultant, Trammel Crow Meghraj, Hyderabad. |
Apart from these two cities, towns like Vijayawada and Warangal are also witnessing growth and development. Malaysia-based IJM Corp has also planned a 119 acre integrated township in Vijayawada. The state government is looking at the option of having small no frills airports in towns like Nellore, Kadapa and Warangal to meet the needs of the small town travelers. This will trigger price rise in these towns, analysts say. |