Telangana - As land prices skyrocket, deals in Hyderabad shrink
At nearly Rs 100 crore per acre in the most recent hyderabad Metropolitan Development Authority (HMDA) auctions, the city may have secured one of the most costly land acquisitions in recent memory in the nation at Kokapet. But if the most recent study from real estate advisory firm ANAROCK is to be believed, it appears to be losing ground to other cities in terms of the volume of deals.
In India, 59 land agreements totaling more than 2,018 acres were finalized between january and august 2023, according to data from ANAROCK. Of these, only two deals totaling 18 acres were completed in hyderabad, making up less than 1% of the top deals in the eight most important cities. 50 land deals totaling more than 1,438 acres were completed between january and august 2022 in major cities.
In the year 2022, seven transactions totaling more than 769 acres and more than Rs 1,313 crores were completed in hyderabad alone. Rajapushpa Group, located in hyderabad, secured a contract for 3.6 acres at Kokapet for Rs 362 crore, making it one of the most expensive land acquisitions in the nation. It surpassed mumbai and trailed only delhi NCR, where Godrej Properties paid Rs 900 crore (Rs 113 crore per acre) for a 7.91-acre parcel in Gurugram.
The only other notable transaction in hyderabad was the purchase of a 15-acre site at Nizampet by Chennai-based Alliance Group's Urbanrise in Q2 2023 for an undisclosed sum. Although hyderabad has been a hub of real estate activity since the pandemic, in large part because prices there were low compared to those in other major cities, ANAROCK noted that the decline in deals this year in hyderabad could be attributed to developers adopting a wait-and-watch strategy because of high prices.
"Prices have dramatically increased in the last two years as a result of the surge in demand for both residential and commercial properties. Given that many are cautiously assessing the market trends, this may be another significant factor in explaining why only two trades have occurred this year. This (Rajapushpa) sale alone has broken all records, erasing Hyderabad's inexpensive label, according to the firm. Land prices have increased dramatically this year.
"Prices have dramatically increased in the last two years as a result of the surge in demand for both residential and commercial properties. Given that many are cautiously assessing the market trends, this may be another significant factor in explaining why only two trades have occurred this year. This (Rajapushpa) sale alone has broken all records, erasing Hyderabad's inexpensive label, according to the firm. Land prices have increased dramatically this year.