Published: Updated – 11:14 p.m., Fri – 25 Feb 22
Hyderabad: It is a proven fact that real estate growth is highly dependent on the type of initiatives a government comes up with. From spurring growth in the Western Corridor by establishing IT parks and an airport to announcing grants for businesses considering the Hyderabad Eastern Corridor. Every incentive and program announced by the government has a direct or indirect impact on the growth of real estate in this region.
The establishment of Cyber Towers and other IT companies in the late 1990s or early 2000s led to a boom in residential, commercial, and official real estate infrastructure in this part of the city. Places like Madhapur, Kondapur, Nanakramguda, Financial District, Miyapur, Kukatpally and other adjoining areas, which until now – say about 10-15 years ago – were just rocky terrain, have now become a commercial and residential center of Hyderabad. These places are now seen as the favorite place for big and small tech companies to set up shop and in turn have led to a boost in residential properties, as well as many malls, cinemas and also shopping malls.
However, now the Western Corridor has started to get somewhat crowded with rapidly exhausting land plot availability and also affected by increased traffic and dense population. In this context, the state government has decided to come up with GRID (Growth in Dispersion) policy or Look East policy to extend the development to other parts of Hyderabad as well.
While the Eastern Corridor, which includes places like Uppal, LB Nagar, has already seen progress in terms of SEZs and IT companies setting up large campuses, the Northern Corridor, which includes places beyond Alwal, Kompally and Suchitra, is growing organically.
The Next Great Computing Hub
In order to put this region on a par with the Western Corridor, the state government has decided to set up the tallest IT tower in Kandlakoya and this, according to the Minister of IT and Industries KT Rama Rao, is the start of many other developments that are planned for this region. The IT tower is expected to accommodate 100 businesses in the first phase and is expected to create approximately 50,000 jobs.
Kompally IT Enterprises Association President Oruganti Venkat, who was instrumental in setting up the tower in Kandlakoya, says more such towers and large multinationals are showing interest in setting up their offices in this region. due to the low cost of real estate and the availability of good talent.
Until about last year, the northern corridor was known for its warehouses set up by big e-commerce giants like Amazon and Flipkart, as well as the ambitious Genome Valley, a destination for research and development clusters. focused on life sciences. However, now that new IT towers are being brought to Kandlakoya, this could spur real estate growth – residential, commercial and official and also lead to an increase in land values.
Growing real estate
According to SquareYards.com, the Northern Corridor of Hyderabad has seen a higher supply of self-contained floors compared to villas, apartments, plots and builder floors.
“In terms of budget, the supply of properties in the range of Rs 30 to Rs 60 lakh recorded the highest followed by Rs 60 to Rs 100 lakh properties for the year 2020. 2BHK apartments were the most in demand the same year. Outlying areas in the northwest are widely preferred due to high employment rate, infrastructure initiatives and metro connectivity,” he said.
Experts also point out that land prices in and around Kandlakoya’s IT towers are all expected to rise in the coming months, even though places like Kompally and Suchitra have been buzzing with activity over the past decade.
From multi-specialty hospitals to international schools to entertainment areas in the form of drive-ins, restaurants and food courts have grown in recent years. Residential property rates have increased exponentially, with land rates also high. Another big attraction for this corridor is the upcoming Regional Ring Road (RRR) which also leads to an increase in the rate of land and other properties.
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