Will the real estate sector, which has been struggling in Hyderabad, be revived by the Metro Rail project? With the expansion of the metro in five new corridors, will the construction sector stabilise? Will real estate in those areas gain momentum? The answer seems to be “Yes.”
The Telangana government has granted administrative approval for the second phase of the Hyderabad Metro Rail project, marking a key milestone. With tenders set to be called in January next year, real estate activities around the five new metro corridors are expected to grow steadily, according to real estate experts who are optimistic about the development.
The prestigious Hyderabad Metro Rail project has received the green signal for its second phase. Hyderabad Metro is now set to expand further. The Telangana government has already taken steps to begin work on the second phase. Designs and plans for the expansion have been finalised, and the final report on estimated costs has been prepared by officials. After approving the final report, the Revanth Reddy government issued administrative approval for the second phase.
The second phase of the metro, estimated to cost Rs 24,269 crore, has been approved by the Telangana government, and the government order (GO 196) has been issued. The metro’s second phase will be constructed in five new corridors, spanning 76.4 kilometres across eight corridors.
Corridor 4: From Nagole to Shamshabad
Corridor 5: From Raidurg to Kokapet
Corridor 6: From Old City (Mahatma Gandhi Bus Station) to Chandrayangutta
Corridor 7: From Miyapur to Patancheruvu
Corridor 8: From LB Nagar to Hayathnagar
Corridor 9: From the Airport to the Fourth City
These developments are expected to greatly enhance connectivity in the city and provide a significant boost to the real estate market in these areas.
The second phase of the Hyderabad Metro expansion is estimated to cost a total of Rs 23,269 crore, with the Telangana government giving approval for the project. Of this, the state government will contribute Rs 7,333 crore (30%), while the central government is expected to provide Rs 4,230 crore (18%). The remaining Rs 11,693 crore (48%) will be arranged through loans, and private companies will contribute Rs 1,033 crore (4%).
The Telangana government plans to complete the second phase of metro expansion in four years. Initially, the government envisioned constructing a metro rail network spanning 116.4 kilometres across six corridors. To date, the Detailed Project Report (DPR) for five of these corridors has been prepared.
In the first phase, the previous government constructed metro lines over 69 kilometres in three corridors with an investment of Rs 22,000 crore under the Public-Private Partnership (PPP) model. Currently, about 500,000 passengers use the metro daily across these three corridors. With the completion of the second phase, the government estimates that metro usage will increase by an additional 800,000 passengers daily.
The second phase of the metro rail project is expected to bring renewed hope to the Hyderabad real estate sector. The expansion of the metro will improve transportation facilities in several areas, leading to increased demand for residential properties, according to real estate experts. In line with this, construction companies are planning large-scale residential and commercial projects in areas where the metro will be extended.
The extension of the metro to Shamshabad is expected to spur real estate development in regions such as Shadnagar and Jadcharla. Similarly, with the metro line extending from Miyapur to Patancheru, real estate activity is expected to pick up in areas like Sangareddy and Zaheerabad. Additionally, with the metro rail project expanding from LB Nagar to Hayathnagar, real estate activity in this area is also expected to grow further.
As a result, the real estate market, which is already present in these regions, is anticipated to experience significant growth.
Real estate experts are expressing optimism that large-scale construction projects will emerge along the metro expansion corridors, particularly from Choutuppal to Chityal. This area is expected to witness substantial development due to the new metro lines.
Additionally, the expansion of the metro from Shamshabad International Airport to the Future City is set to rapidly boost development in the Mutchcherrla area. With several public sector companies already setting up operations in the Future City, and national and international firms showing interest, the Telangana government’s development initiatives in the area have garnered significant attention. Now, with the metro extension in place, construction companies are planning large-scale residential and commercial projects in these regions.
Affordable housing options are likely to attract many individuals looking to settle in the Future City, which is expected to see a surge in population as a result. As a result, the real estate activity across these five corridors, spanning 50 to 80 kilometres, is expected to pick up significantly. The second phase of the Hyderabad metro project has led the Telangana government to grant administrative approvals, further boosting confidence in the future of residential and commercial developments along the metro routes.
Real estate experts are optimistic that these areas will witness an uptick in both residential and commercial construction activities, paving the way for a bright future for real estate development in the region.
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