Hyderabad’s development beyond politics!

Hyderabad is the heart of Telangana
Politics should not hinder city’s growth!
Permissible construction area in Greater
Hyderabad is 3-3.5 lakh sq.ft per acre
No permission given for 5 lakh sft construction area
If given, 70 and 80 storey buildings
should have been constructed
33 percent space should be reserved
for parking, which is not under FSI
Demand and supply rule the market
Even if permitted, there must be buyers!

(King Johnson Koyyada)

Some political leaders in Telangana are criticising the State government over an increasing number of skyscrapers in Telangana, alleging that permissions were being issued with unlimited FSI (Floor Space Index) against the norms. They are alleging that no such policy to allow skyscrapers, is being implemented in rest of the country. Since Independence, many political parties have worked very hard for development of Hyderabad city. Regardless of politics, every party that came to power has developed Hyderabad. Hence, politicians are advised to set aside their political differences with regard to growth of the city which is crucial for Telangana State as well. If political criticism is made without facts, it could dent the rapid development of Hyderabad. One must understand the fact that people will not buy houses in skyscrapers just because the government is allowing them. The realty market depends on demand and supply.

Politicians should be aware that the current State government had not sanctioned any fresh permissions for skyscrapers. In 2006, the then Chief Minister of Andhra Pradesh, late YS Rajasekhar Reddy, released a GO permitting unlimited FSI. Depending on the size of the plot and the width of the approach road, the realtors are allowed to build apartment of any height. As a result, since then the culture of building multi-storied buildings and skyscrapers started. Lanco Hills in Manikonda and Lodha Towers in KPHB Colony are considered as first generation skyscrapers of Hyderabad. Later, many construction companies have started skyscrapers in areas like Madhapur, Kondapur, Gachibowli, Nalagandla, Tellapur, Nanakramguda, and Raidurg. It is improper on part of the Opposition parties to blame the current BRS regime to allow new skyscrapers indiscriminately.

Neither GHMC nor HMDA has granted permission for 5 lakh sq.ft per acre in Hyderabad, as is being alleged by the Opposition parties. Permission were given for 3 to 3.5 lakh sq.ft in GHMC area. Permission has been given to a maximum of 3 lakh sq.ft per acre under HMDA. If permission is to be given to the extent of 5 lakh sq.ft, skyscrapers should come up in Hyderabad with a height of 70 to 80 floors. But, the city has only three or four projects with a height of 50 floors. Further, it should be understood that the higher the height, the higher the cost of construction.

The builders are mandated to reserve about 33 percent of the space in every skyscraper for parking which is not part of the FSI. However, it should be noted that every construction company developing skyscrapers tend to allocate as much parking space as possible. Builders of multi-storied structures and skyscrapers must follow fire regulations and if violated, no permissions will be granted.

Demand and supply

Development of realty market in Hyderabad is solely dependent on demand and supply. Also, just because construction of skyscrapers is allowed, there is no guarantee that people buy them as home buyers purchase properties that suits them best. As per latest estimation, around 75,000 flats are currently under construction in Raidurgam, Madhapur, Kondapur, Gachibowli, Lingampally, Nallagandla, Tellapur, Osman Nagar, Kollur, Kokapet, Puppalguda, Narsingi, and Manchirevula. Similarly, around 10,000 flats are being constructed in areas like TSPA Junction, Kismatpur, Bandlaguda, and Peerancheruvu, with another 15,000 flats between Miyapur and Gandimaisamma. All these constructions will be completed in the next three to four years. But to what extent are these in demand? Due to factors such as changed economic conditions, increased home loan interest rates, high flat prices and an election year, it is now questionable if people want to buy flats this financial year. The State government granting permission for construction, is not a mandate to buy those properties.

The skyscrapers seen here are proof that the city is developing rapidly. Those who visited countries like Malaysia, Dubai and Singapore can clearly understand this. Thus, the orders to allow skyscrapers in the surrounding areas of Kokapet is not a latest one and it was clearly mentioned in the GO released during YSR regime in 2006. Moreover, don’t forget that the then government also held land auctions in surrounding areas. Compared to earlier, an increasing number of people are buying flats in skyscrapers due to the changing market conditions and the increase in purchasing power of the people. Hence, construction companies are building these skyscrapers.