Hyderabad Land Prices 2024: Understanding the Market Landscape

Hyderabad Land Prices 2024:

Hyderabad’s land market is a dynamic and diverse landscape, catering to various needs and budgets. Understanding the current price trends, influencing factors, and potential challenges is crucial for informed decision-making. Here’s a comprehensive overview:

Price Trends:

Overall: Land prices in Hyderabad have witnessed significant growth in recent years, driven by factors like economic expansion and infrastructure development. However, the pace of growth has moderated in recent quarters, offering potential opportunities for buyers. Prices vary significantly depending on several factors.

Development status: Developed land with existing utilities is priced higher than raw land requiring infrastructure development. However, the purpose of investment and interest areas of investment definitely impact the land you choose.

“What experiences consistent growth is the population, and what cannot be expanded is the land. As long as this trend continues, land prices will continue to rise, impacting the cost of living for people.”

Note: As of today, February 28, 2024, the residential market in Hyderabad is experiencing a slowdown, with current market conditions stagnant in land trading. Despite the challenges mentioned earlier, the vision for development set by the BRS Government has materialized, evident in the state’s focus on long-term employment creation and overall development. This has positively impacted land prices in Telangana.

Congress Government:

The new Congress Government has redirected its focus on existing projects and introduced new plans that are expected to influence land prices and the residential market. Comments from the Congress CMO office regarding changes in the Metro plan and the shift of Pharmacity have created uncertainty. However, the recent GO (No. 69 over 111 GO) has paved the way for significant developments by removing restrictions in 84 villages, opening up 1.32 lakh acres of land for development, including areas near the Rajiv Gandhi International Airport at Shamshabad.

Additionally, positive development comments by new GOVT include the planing of satellite townships across Telangana, impacting mid-sized builders and local residential flat sales. The 20/50 Mega master plan has also have a substantial impact on Telangana’s real estate. It is anticipated that this uncertainty will continue further, and prices will rise again after the MP elections.

BRS GOVERNMENT:

The BRS Government has accomplished significant infrastructure development, marked by 23 flyovers, numerous underground tunnels, single window clearances through the Dharani portal, IT corridors, water and power supply improvements, aerospace initiatives, and attracting foreign investments. Notably, some SEZs such as Zahirabad, Telangana Mobility Valley (TMV), and Kandlakoya IT Tower Park have outperformed expectations.

In 2023, government auctions in Mokila, Neopolis, and Budvel have played a pivotal role in influencing land prices. The auction in Mokila saw square yard prices reach 1 lakh Rs, while Neopolis recorded prices of 100 Cr per acre. This artificial spike, while beneficial for the former BRS Government,

Hyderabad real estate

Hyderabad’s Four Cardinal Directions – East, West, North, and South:

East Hyderabad:

Advantages: Affordability for buying lands, Warangal highway, Yadadri Temple, Infosys, Pocharam IT Corridor, Metro train projects, ORR connectivity.

Current Price Range:

Open plots: ₹10,000 to ₹50,000 per square yard.

Open Plots (GP Layouts): ₹7,000 to ₹15,000 INR.

DTCP Layout: ₹10,000 to ₹25,000 INR.

HMDA Layout: ₹20,000 to ₹50,000 INR.

Farm Plots: Typically sell in Guntha (121 Square Yards), ranging from ₹800,000 to ₹1,200,000 per Guntha.

Farm Land: Investment generally in acres, ranging from ₹7,000,000 to ₹20,000,000 per acre.

Commercial Plots: Prices in prime areas like the IT corridor can reach ₹1 lakh per square yard, while developing commercial zones may start around ₹70,000 per square yard.

Note: There is a significant difference in investing in any land. Carefully identify the purpose of investment and the chosen segment. Prices vary based on different factors.

Hyderabad West:

Significant Developments: Kokapet IT Sez, Knowledge city in Gachibowli, Unlimited FSI declaration in Residential zone, 111 GO revoked, Airport connectivity, ORR growth corridor developments, Mumbai Highway, Gandipet residential locality.

Land Price Analysis

Prices in West Hyderabad:

Open plots: ₹25,000 to ₹100,000 per Square Yard.

Farm Plots: ₹1,500,000 to ₹25,00,000 per Guntha.

Farm Lands: ₹5 Crore to ₹80 Crore per acre.

Prices vary based on Open plot residential zones (R1, R2, R3), Layout segregation (GP, DTCP, or HMDA). Farm plots and farm lands are more dependent on locality.

Hyderabad South:

Developments: Pharma city (20,000 acres), Amazon Data centers, Nearby airport, Srisailam Highway, and Bangalore highway residential developments.

Prices in South Hyderabad:

Open plots: ₹7,000 to ₹35,000 per Square Yard.

Farm Plots: ₹1,000,000 to ₹1,800,000 per Guntha.

Farm Land: ₹2 Crore to ₹30 Crore per acre.

Land availability is more than the west part of Hyderabad and less than the east. Prices are higher than the east and lower than the west.

Hyderabad North:

Investment Focus: Suchitra circle, Kompally, and Chevella areas. More industrial warehouses are in the northern part of Hyderabad.

Prices in North:

Open Plots: ₹6,000 to ₹12,000 per Square Yard.

Farm Plots: ₹500,000 to ₹1,000,000 per Guntha.

Farm Lands: ₹5,000,000 to ₹2 Crore.

Land is the greatest investment source

Land availability is more compared to the south and less compared to the east. Prices are much affordable. New infrastructure and government focus may shift to the north, leading to sudden and rapid growth.

Government Initiatives and Its Impact: As the government promises new Metro projects and satellite townships around the city, it has a significant impact on Hyderabad and TS real estate. However, the shift of Pharma City and comments on big infrastructure projects in the south has slightly disturbed the residential market in those areas. The Congress government realized this impact,The former BRS Government provided significant growth potential for the entire City, and created the best source for creating employment generation. The new government is expected to continue this momentum.

Factors Influencing Land Prices:

Economic growth: A strong and growing economy, particularly in sectors like IT and pharmaceuticals, fuels demand for land, leading to price increases.

Infrastructure development: Improved connectivity through projects like the metro rail and highways enhances accessibility and desirability of specific locations, pushing up prices.

Government policies: Government initiatives, like development plans and zoning regulations, can influence land use and value.

Demand and supply dynamics: When demand for land in a particular area exceeds supply, prices tend to rise. Limited land availability: As the city expands, finding suitable land parcels, especially in prime locations, is becoming increasingly challenging, impacting affordability.

Bureaucratic hurdles: Navigating the legal and regulatory framework can be time-consuming and complex, requiring patience and expert guidance.

Market fluctuations: The market is susceptible to external factors, like economic downturns, which can lead to price fluctuations and potential risks.

Limited Supply: Land is a finite resource, and its supply is limited. As the population grows, the demand for land increases, potentially driving up its value over time.
Tangible Asset: Land is a tangible asset with intrinsic value. Unlike some financial instruments, you own a physical piece of property that typically does not depreciate like certain other assets might.
Low Volatility: Land values generally exhibit lower volatility compared to other types of investments, such as stocks or cryptocurrencies. This can provide a sense of stability to investors.
Historical Appreciation: Over the long term, land values have historically appreciated. While there can be fluctuations, land investments often have the potential to grow in value over time.
Diversification: Including land in an investment portfolio can contribute to diversification. Diversifying across different asset classes can help mitigate risks associated with a particular type of investment.
Tangible Utility: Land can have practical uses beyond investment, such as agricultural or commercial purposes. This utility can provide additional income streams or flexibility in how the land is utilized.
Hedge Against Inflation: Land is often considered a hedge against inflation. As the general price level of goods and services rises, the value of land may also increase.

@PCM PROPERTY GROUP

However, it’s important to note that while land investment can offer stability, it is not without risks and considerations. Factors such as location, zoning regulations, economic conditions, and market trends can impact the success of a land investment. Additionally, land is generally considered a long-term investment, and liquidity can be a challenge compared to more liquid assets.

Before making any investment decisions, it’s advisable to conduct thorough research, seek professional advice, and carefully evaluate your financial goals and risk tolerance.

Conclusion:

Investing in Hyderabad’s land market requires thorough research, considering price trends, influencing factors, and potential challenges. Consulting with experienced professionals and staying updated on market dynamics are crucial for navigating the complexities and making informed decisions.

has introduced confusion among real-time buyers.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a qualified advisor before making any investment decisions.

Thanks and Regards

K.V Raman Ayyala

Founder and CEO

@PCM PROPERTY GROUP

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