- Will the real estate sector grow with the second phase?
- It would be amazing if even one or two phases are completed in three years!
- Don’t blindly believe what realtors and agents say
- Think realistically and buy plots and flats carefully
The real estate market in Hyderabad has been running mostly on hype for the past fifteen to twenty years. Whenever some big development was announced, people would rush to buy plots and flats there. Similarly, before the Shamshabad airport was built, many people purchased land around Maheshwaram and waited for 10-15 years. Now, with talks of the metro rail coming, areas like Future City, Shameerpet, Medchal, and others are suddenly being hyped up overnight by some realtors and agents as if miracles are happening instantly.
But just because a metro rail line is announced for an area, it doesn’t mean that miracles will happen overnight. It takes at least 5 to 10 years for a region to truly develop. So, investors in real estate need to think twice or even thrice before putting their money in. The second phase of the metro rail is no exception to this rule.
Even before the metro rail arrived in Hyderabad, the seeds of development were sown through HITEC City. Subsequently, due to IT and financial institutions, the real estate market gradually developed around areas like Raidurg, Financial District, and Gachibowli. However, everyone should realise that these areas didn’t develop overnight.
The metro rail project, which began in 2010, increased the interest of city dwellers in living in suburban areas. Metro routes from Nagole to Raidurg and LB Nagar to Miyapur have improved connectivity. There is no doubt that the second phase of the metro will further accelerate Hyderabad’s development. But, it will take some time, and that is the reality.
In reality, the idea to build a metro rail in Hyderabad was proposed by Chandrababu Naidu in 2003. However, when the government changed in 2004, the project stalled. Again, in 2007, the late leader YS Rajasekhara Reddy laid the foundation for the metro, but due to the Satyam scam, the work came to a halt. Then in 2010, L&T won the metro tenders and under CM Kiran Kumar Reddy’s tenure, metro work commenced. The metro rail project gained momentum in 2013.
Until then, people preferred living in central Hyderabad. With improved metro connectivity, areas like Kukatpally, Miyapur, and Chandanagar became more attractive for residence. Accordingly, builders and construction companies started developing residential and commercial projects in these areas based on metro connectivity.
In 2012, the price per square foot for flats in LB Nagar apartments was around Rs 2,000 to Rs 3,000. In areas like Malakpet and Dilsukhnagar, flats were available in the Rs 40-45 lakh range. In nearby areas such as Miyapur, Kukatpally, Pragathi Nagar, and Nizampet, apartment flat prices per square foot ranged between Rs 2,000 and Rs 3,000. But now, prices have surged dramatically to between Rs 6,000 and Rs 7,000 per square foot. In Kukatpally, prices are reportedly around Rs 8,000 per square foot.
Similarly, house prices have skyrocketed along the Nagole-Raidurg metro corridor. Metro connectivity has significantly influenced areas like Madhapur, Hitech City, Gachibowli, Poppalguda, and Narsingi, which are adjacent to Raidurg. While IT development was already growing in Raidurg, the metro arrival caused rapid, almost unseen, development. In 2012, apartment prices per square foot in Nagole ranged between Rs 2,000 and Rs 3,000. Now, in areas surrounding Nagole, prices have jumped to between Rs 6,000 and Rs 8,000 per square foot—an increase of roughly 400% since 2012. Independent houses in Nagole that were available for Rs 25 lakhs back then now cost over Rs 1 crore.
There’s no need to say much about the Raidurg area. Compared to 2012, house prices have skyrocketed. Along with Raidurg, areas like Hitech City, Madhapur, Gachibowli, Poppalguda, Nanakramguda, and Narsingi had apartment prices ranging from Rs 3,000 to Rs 4,000 per square foot back in 2012. But now, depending on the project, prices have risen to between Rs 8,000 and Rs 12,000 per square foot. This means that to buy a flat in the Raidurg vicinity, one must spend at least Rs 1.2 crores. Compared to 2012, prices have increased by 300 to 400%.
Land prices have also surged significantly here. Currently, the price per square yard ranges from Rs 2 lakhs to Rs 3 lakhs. Land prices have shot up dramatically, with the cost per acre ranging between Rs 70 crores and Rs 100 crores.
If second phase comes? Now, with the Hyderabad Metro Rail Second Phase project, expectations have risen that real estate will boom in the city’s outskirts. As part of the second phase, the government has selected routes from JBS to Medchal, JBS to Shameerpet, and Shamshabad Airport to Future City.
Even though these metro routes are yet to be completed, there is no doubt that once finished, whether in the next five to 10 years, there will be a strong increase in demand for these areas.
Currently, flats in Medchal are available at around Rs 5,500 per square foot. But once the metro is completed in the next three years, prices are expected to rise to at least Rs 7,000 to Rs 8,000 per square foot. In Shameerpet, flats are currently priced around Rs 5,000 per square foot. After metro construction, rates could increase up to Rs 7,000 per square foot. Regarding Future City, DTP-approved plots are priced around Rs 20,000 per square yard. If the metro project is completed, prices could see a further rise.
However, metro projects tend to gain support primarily in densely populated areas. So, when exactly Future City and its surrounding areas will truly boom is uncertain. There are doubts about when the metro will start there. Therefore, don’t expect to hear the metro whistle in Future City within the next five years. The development of Future City will largely depend on the decisions taken by the new government after these three years. So, don’t blindly believe the words of realtors and agents who try to inflate plot and land prices. Think realistically and make your decisions carefully. Metro start.. finish..!
2003 – In the undivided Andhra Pradesh, then CM Chandrababu Naidu planned the metro rail project. 2004 – After the government changed, the project was shelved. 2007 – Late leader Y.S. Rajasekhara Reddy gave the green signal for the metro. 2008 – Contract awarded to Maytas Infra. 2009 – Maytas withdrew from the metro project due to the Satyam scam. 2010 – L&T won the metro bid under the PPP model. 2012 – On April 26, the foundation stone was laid by the then CM Kiran Kumar Reddy. 2017 – On November 28, Phase 1 was inaugurated by PM Narendra Modi. 2020 – Phase 1, covering 69 km, was completed.