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Wednesday, May 18, 2022

With GO-111 revoked, Hyderabad developers eye real estate boom

By revoking a 26-year-old order, Telangana government has unlocked 1.32 lakh acres across 84 villages adjoining Hyderabad for development

Written by Rahul V Pisharody | Hyderabad |
Updated: April 30, 2022 12:37:10 pm
telangana real estateIn the heart of IT hub Gachibowli, high-rise projects are underway with prices going up to Rs 16,000 per sq ft. (File/Representative Image)

Emerging from the hiatus caused by the Covid pandemic, notwithstanding the rising input costs, realtors and developers in Hyderabad are not only confident of an upward market trend but see a big boost for the sector in the coming days. They believe a planned approach is set to change the face of Hyderabad.

By revoking a 26-year-old government order (GO-111) that prevented big constructions and industries in the 10-km radius of two Nizam-era water reservoirs, Osman Sagar and Himayat Sagar, and its catchment on the city’s outskirts, the Telangana government has unlocked as much as 1.32 lakh acres across 84 villages adjoining Hyderabad for development.

This translates to as much as 538 sq. km of land close to an ever-expanding urban agglomeration called Greater Hyderabad, which in itself is presently spread across 650 sq. km.

“Lifting of GO-111 is going to change the lifestyle of people of Hyderabad. There has been a demand for high rise buildings but since such vast land is now available, people are going to opt for villas or G+5 (five-storeyed) buildings,” said D Muralikrishna Reddy, president of the Telangana chapter of the Confederation of Real Estate Developers Associations of India (CREDAI). “At present, one could get anywhere between Rs 2 crore and Rs 10 crore per acre for land here. In 2-3 years, this will grow by 10 to 15 times,” he told indianexpress.com.

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V Rajasekhar Reddy, the general secretary of CREDAI’s Hyderabad chapter, echoed similar views that an entirely new and environmentally friendly city could be developed here taking the ecological balance into consideration and showcased before the world. “We don’t see these lands as commercially viable lands but a valuable addition to the present Hyderabad. While protecting the environment, villas, resorts, holiday homes, recreational facilities and luxury housing with certain restrictions could be built,” he added.

While environmental activists are wary of uncontrolled urbanization and hence opposed to the repeal of GO-111, considering the ecological balance of the region and the reservoirs’ role in the flood mitigation mechanism of the city, the government has maintained that it would not allow the water quality in these twin reservoirs to deteriorate and instead earmark green zones and prepare environment-friendly infrastructure with sewage treatment plants, roads and drainage.

At the launch of the 11th edition of the 3-day CREDAI Hyderabad Property Show on Friday, several industry representatives stressed their willingness to be part of the development of areas under the erstwhile GO-111 areas. Municipal Administration and IT and Industries Minister K T Rama Rao, who participated as chief guest, said he will consider their suggestions and inputs during the process.

KTR, as Rama Rao is fondly called, announced that the state will unveil a new master plan for Hyderabad in the next 18 months, especially with the scrapping of GO-111, and simultaneously prepare master plans for all 141 municipalities and municipal corporations before March 31, 2023. According to him, the construction sector need not have any market-related apprehensions for the next 10 or 15 years as opportunities were plenty.

The minister was referring to the need for housing that was likely to emerge from employment created by multinational companies setting up large campuses in Hyderabad. Recently, Google announced the establishment of its 3.3 million sq ft campus in Hyderabad, its largest campus outside of the US. E-commerce giant Amazon has already opened a 3 million sq ft campus in Hyderabad. Microsoft and Amazon are setting up their data centres here. The government has also begun works on the establishment of pharma city, industrial parks, electronics manufacturing cluster (EMC), logistics parks and also the new IT parks in tier-2 cities.

“There is a huge market with plenty of demand for housing across Telangana. At Zaheerabad, at least 4 lakh jobs are being created with the setting up of the National Investment and Manufacturing Zone (NIMZ) and this means there is a need for so many houses. Across Telangana, there is good demand for three-bedroom houses,” added Muralikrishna Reddy, noting that “today, nowhere across Telangana can you buy land for less than Rs 25 lakh an acre.”

Rajashekar Reddy too said that the pandemic was a blessing in disguise for the real estate sector though it caused a temporary upset. “People have realized the need for better facilities and bigger houses. They have started to appreciate better standards of living now,” he said. Compared to sales of about 25,000 units before the pandemic, the sector is selling about 50,000 units a year now, according to him.

In the heart of IT hub Gachibowli, high-rise projects are underway with prices going up to Rs 16,000 per sq ft. A real estate professional at the property show said that premium flats were starting at Rs 25 crore onwards, getting ready for possession in luxury gated communities. In nearby areas like Narsingi, Gandipet, Financial District, Puppalaguda, and Kokapet, the cost per sq ft has gone past Rs 10,000. “There are standalone apartments, too, which are a bit more economical. In mid-segment apartments, Kukatpally, Chandanagar, Patancheru, Miyapur, etc have 2-bedroom flats available for Rs 75 lakh to Rs 80 lakh at present. In Gachibowli, Financial District, and Kokapet, one would not find anything less than Rs 1.3 crore,” he said.

However, these are localities in the west of Greater Hyderabad which have been the focus of the real estate boom due to their proximity to the IT hub and the international airport.

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