Is Hyderabad losing its significance?

Hyderabad: From real estate development perspective, compared to cities like Mumbai, Bangalore, Chennai, the city of Hyderabad was affordable for all sections of society, but not now anymore. Prices of flats were cheaper in the City of Pearls. The outsiders always apartments in Hyderabad were highly affordable. Gradually, the city lost its significance from 2017. The realty prices in Hyderabad are vis-à-vis the realty prices in other metropolitan cities.

Then, what does the growth signify? Many are not coming forward to buy houses or flats in Hyderabad due to artificial rise realty prices?

In this backdrop, what should the common man or the middle classes do to have a roof of their own over their head?

In the new state of Telangana, there was a marked difference between realty prices in the city and those in the city outskirts. Now, the difference is wiped out. The cost is more or less the same whether it is Vanastalipuram or Miyapur. The realty costs are more or less the same whether it is AP Police Academy Junction (APPA) or Uppal. The low-income groups and middle classes are finding it hard to own a house or flat in Hyderabad, especially after 2019 elections. To buy a flat, they need to move to outskirts. The one-time outskirts like LB Nagar, Chanda Nagar, Manikonda, Uppal and Bowenpally have merged with the city due top city’s expansion beyond Hayathnagar upto Beeramguda, Narsingi and Medchal. One has to shell down Rs 50 lakh to buy a 2BHK flat even in these suburbs. The common man is now in a paradoxical situation. Should he feel elated over city’s rapid expansion or should he worry over housing plots prices going out of his purview?

Realty prices increased after 2017

There has been a marked increase in reality prices especially after 2017. The State Government announced its plans to set up a plastics park here an IT park there in the suburbs, giving boom to realty in the outskirts. The cost of a square yard was less than Rs 3000 in Sultanpur prior to government establishing a plastics park there. Now, one has to pay Rs 8000 to Rs 10,000 per square yard there. Did people get employment in the industrial units of the Plastics Park? A big no was the answer. The moment IT Park was announced to be set up in Budwel, the developers hiked the cost of apartment by Rs 1000 per square feet. Same was the case with Kompally where an IT Park was announced. The steep escalation of prices denied an opportunity to common man to own a house or flat.

The following table illustrates the realty costs in Hyderabad

In Ameerpet, to buy a flat one has to shell down Rs 8000 per square feet as against Rs 4000 in 2014. In Madhapur, one has to pay Rs 10,000 per sft as against Rs 5200 in 2017. In Jubilee Hills, one needs to pay Rs12,000 per sft as against Rs 6000 per sft in 2017. In Miyapur, one has to pay Rs 6000 per sft as against Rs 2400 in 2017. The situation is more or less the same even in LB Nagar. In Bandlaguda, which is located at a radius of 15 km from Secretariat, a sft costs Rs 5600 as against Rs 3400 four years ago i.e. in 2017.

The HMDA acquired land in Uppal Bhagayat layout and auctioned house sites. It is keen to acquire land in Kolluru, near here, according to reliable information. If the state government has plans to do so, it is advisable to build flats for middle classes and upper middle classes. It will help them to realise the dream of owning a flat. It is better for the government to build flats on the outskirts in all directions. In fact, the developers in the city are not building homes for the benefit of common man or middle classes. They always target investors, NRIs, high-net worth individuals. It was high-time, the government built flats for the benefit of common man to help people own a flat.