Land Prices in Hyderabad
Hyderabad, the capital city of Telangana, is one of the fastest-growing cities in India, and a prime destination for real estate investments. Hyderabad’s booming IT industry and other sectors have significantly contributed to the city’s economic growth and development, making it a desirable place to live and work. With the increase in population and demand for housing, the prices of land in Hyderabad have skyrocketed in recent years. In this article, we will take a closer look at the land prices in Hyderabad, and the factors that influence them.
Over the past couple of decades, the Hyderabad real estate sector has seen consistent growth. The combination of the rapid development of infrastructure and ample job opportunities has sparked this growth. As the front runner for all IT and ITES investments in India, Hyderabad is rapidly cementing its credibility. The abundance of elevated corridors, highway networks, Metro Rail, and its unique culture add more flavor to the growth model of Hyderabad. Over the past two years, a few areas in Hyderabad have seen almost a 100 percent price escalation.
Search for land prices & real estate trends & compare area-wise property rates across Hyderabad.
| Locality | Price Range (Rs./Sq-Yrd) | Average Price (Rs./Sq-Yrd) | 18 mnths Change |
|---|---|---|---|
| Adibatla | 10683 - 16514 | 13,598 | - |
| Alwal | 40046 - 72197 | 48,622 | 15.9% |
| Ameenpur | 25146 - 55715 | 35,431 | 6.3% |
| Appa Junction | 45628 - 65130 | 48,879 | 41.6% |
| Attapur | 62986 - 85463 | 65,225 | 15.8% |
| Bachupally | 45506 - 57085 | 47,296 | 6.8% |
| Bandlaguda Jagir | 57085 - 71799 | 54,442 | 62.6% |
| Banjara Hills | 178150 -280523 | 1,98,169 | 16.8% |
| Beeramguda | 26169 - 42566 | 34,368 | - |
| Bhanoor | 21521 - 36565 | 24,043 | - |
| Bhuvangiri | 5000 - 7966 | 6,483 | - |
| Bibinagar | 15461 - 19085 | 17,273 | 52.4% |
| Boduppal | 35983 - 50352 | 43,168 | 4.7% |
| Bolarum | 40755 - 65740 | 48,248 | 39.5% |
| Bowenpally | 52885 - 135500 | 67,693 | 17.3% |
| Budwel | 80340 - 124000 | 95,240 | 18.5% |
| Chandanagar | 55179 - 85085 | 57,132 | 11.1% |
| Chandrayanagutta | 20959 - 27815 | 24,387 | 69.5% |
| Cherlapalli | 25171 - 42947 | 34,059 | 9.7% |
| Chevella | 2690 - 4234 | 3,462 | - |
| East Marredpally | 70950 - 115000 | 72,475 | 14.7% |
| Financial District | 95056 - 180106 | 99,581 | 49.3% |
| Gachibowli | 90282 - 175496 | 95,389 | 29.4% |
| Gajularamaram | 28288 - 36878 | 32,583 | - |
| Gandi Maisamma | 32288 - 38878 | 34,583 | - |
| Gopanapalli | 75000 - 120000 | 90,000 | |
| Gowlidoddi | 84000 - 140000 | 95,000 | |
| Ghatkesar | 8685 - 12855 | 9,770 | - |
| Gundlapochampalli | 29125 - 52272 | 32,199 | 38.1% |
| Hafeezpet | 75000 - 130000 | 85,000 | |
| Hayathnagar | 27961 - 39636 | 33,798 | - |
| Hitec City | 125900 - 195725 | 1,58,813 | 20.3% |
| Ibrahimpatnam | 20177 - 35868 | 27,522 | - |
| Isnapur | 18654 - 28036 | 19,345 | - |
| Jubilee Hills | 191058 - 307770 | 1,94,414 | 8.7% |
| Kapra | 41420 - 62452 | 46,936 | 5.9% |
| Kardhanur | 24152 - 36065 | 25,109 | - |
| Keesara | 15267 - 27218 | 18,243 | - |
| Kokapet | 145000 - 206600 | 1,55,000 | 26.7% |
| Kollur | 33770 - 60830 | 45,300 | 45.0% |
| Kompally | 49288 - 95870 | 55,579 | 49.6% |
| Kondapur | 88195 - 140730 | 95,463 | 18.0% |
| Kongara Kalan | 18475 - 28240 | 19,858 | - |
| Kothur | 14972 - 21738 | 15,355 | - |
| Kuntloor | 19328 - 45622 | 22,475 | - |
| Kukatpally | 55657 - 120861 | 75,759 | 19.6% |
| Madhapur | 90872 - 214315 | 97,594 | 3.5% |
| Madinaguda | 80872 - 114315 | 92,594 | - |
| Maheshwaram | 9885 - 17650 | 13,268 | - |
| Manikonda | 75342 - 140550 | 84,446 | 30.3% |
| Mansanpally | 9268 - 17268 | 12,268 | - |
| Medchal | 14364 - 27939 | 18,651 | - |
| Miyapur | 42458 - 56992 | 52,725 | - |
| Moinabad | 15654 - 26783 | 17,219 | - |
| Mokila | 48152 - 105742 | 52,947 | 40.7% |
| Muthangi | 28622 - 39065 | 32,344 | - |
| Nadargul | 27005 - 35682 | 29,344 | - |
| Nagole | 45822 - 72114 | 53,968 | 22.2% |
| Nallagandla | 82342 - 140375 | 88,359 | 43.6% |
| Nanakramguda | 95056 - 180106 | 1,02,581 | 68.0% |
| Nandigama | 18158 - 28434 | 19,296 | - |
| Narapally | 27918 - 46508 | 32,213 | 20% |
| Patancheru | 24328 - 42388 | 28,858 | 64.9% |
| Patighanpur | 25918 - 38830 | 28,874 | - |
| Rajendra Nagar | 45580 - 98700 | 52,140 | 13.8% |
| Ramachandra Puram | 58273 - 92817 | 62,545 | 24.4% |
| Rampally | 16510 - 31541 | 24,026 | 41.1% |
| Rudraram | 15653 - 36971 | 18,312 | - |
| Sainikpuri | 68000 - 110000 | 78,000 | |
| Sadashivpet | 12756 - 18068 | 14,412 | - |
| Sangareddy | 16391 - 24501 | 18,446 | - |
| Shadnagar | 6,310 - 14,501 | 8,906 | 34.0% |
| Shamirpet | 14,502 - 35,814 | 23,158 | 17.9% |
| Shamshabad | 29988 - 65091 | 32,540 | 87.2% |
| Shankarpally | 18804 - 34360 | 25,582 | 20.5% |
| Tarnaka | 85000 - 140000 | 95,000 | - |
| Sultanpur | 23005 - 31300 | 24,153 | - |
| Tellapur | 65520 - 140245 | 75,383 | 78.8% |
| Tukkuguda | 19475 - 32622 | 21,549 | 20.7% |
| Turkayamjal | 26065 - 52420 | 28,743 | - |
| Uppal | 51639 - 94469 | 54,554 | 15.3% |
*Disclaimer: These listed rates are based on the asking prices of developers and individual owners and are not based on actual transactions.
Factors Influencing Land Prices in Hyderabad:
- Location: The location of the land is the most critical factor in determining its price. The land prices in prime locations like Jubilee Hills, and Banjara Hills are considerably higher than in other areas. The demand for land in these areas is always high, driving up the prices.
- Infrastructure: The availability of basic infrastructure facilities plays a significant role in determining land prices. Areas with better infrastructure facilities command higher prices.
- Proximity to Business Districts: Areas that are close to business districts and commercial areas are in high demand. The prices of land in these areas are generally higher than in other areas.
- Development Plans: The land prices in Hyderabad are also influenced by the city’s development plans. The government’s plans for developing new business districts, residential areas, and other infrastructure projects can impact the land prices in nearby areas.
- Type of Land: The type of land, whether it is agricultural, residential, or commercial, also plays a significant role in determining its price. Agricultural land is generally cheaper than residential or commercial land.
- Size of the Plot: The size of the plot is another factor that influences its price. Bigger plots generally command a higher price than smaller plots.
How are land prices determined in Hyderabad?
Land prices in Hyderabad are determined by the government for every locality in the state. The government fixes the land rates based on various factors, such as market value, infrastructure facilities, proximity to business districts, development plans, type of land, etc. It also revises the land rates periodically to reflect the changes in market conditions and demand.
The government posts land rates for each area on its official website. These rates apply to property registration in Hyderabad. Buyers pay stamp duty and registration charges based on the land rate in their specific locality. The buyer pays stamp duty as a tax to the government during registration. Additionally, the buyer pays a registration fee to officially register the property in their name.
The stamp duty and registration charges vary depending on the type and value of the property. For residential plots, the stamp duty is 5.5% of the market value or agreement value, whichever is higher. The registration charge is 0.5% of the market value or agreement value, whichever is higher. For example, if a buyer purchases a residential plot worth Rs. 10 lakhs in Hyderabad, he or she will have to pay Rs. 55,000 as stamp duty and Rs. 5,000 as registration charge.
The government also provides online services for calculating the stamp duty and registration charges for different types of properties. The buyers can also check the market value of their property online using the market value form.
What are the current trends and forecasts of land prices in Hyderabad?
Hyderabad has witnessed consistent growth in its real estate sector over the past couple of decades. The combination of rapid development of infrastructure and ample job opportunities has sparked this growth. As the front runner for all IT and ITES investments in India, Hyderabad is rapidly cementing its credibility. The abundance of elevated corridors, highway networks, Metro Rail, and its unique culture add more flavor to the growth model of Hyderabad.
Over the past two years, a few areas in Hyderabad have seen almost a 100 percent price escalation. These areas include Kondapur, Gachibowli, Hitech City, Madhapur, Kukatpally, Miyapur, Manikonda, etc. These areas are close to the IT hubs and business districts of Hyderabad and offer excellent connectivity and infrastructure facilities. The demand for residential plots in these areas is always high, driving up the prices.
Trends
As per our research, Hyderabad witnessed an average increase of 3% in its residential plot prices in Q4 2020 compared to Q3 2020. The research also proves that Hyderabad recorded an annual growth of 9% in its residential plot prices in 2020 compared to 2019.It attributes this growth to factors such as political stability, improved infrastructure, increased demand from end-users and investors, affordable pricing, and favorable government policies.
The research also forecasts that Hyderabad will continue to witness a positive trend in its real estate sector in 2021. It expects that areas such as Kompally, Shamshabad, Adibatla, Maheshwaram, Shadnagar, etc., will see an increase in demand and supply of residential plots due to their proximity to upcoming industrial corridors and airport zones.
Our research indicates that Hyderabad’s real estate sector will experience a 14% compound annual growth rate (CAGR) from 2019 to 2024. The report highlights that the Covid-19 pandemic did not significantly affect Hyderabad’s real estate sector, and it exhibited signs of recovery in the second half of 2020. Factors such as low-interest rates, high disposable income, increased urbanization, a growing population, and government initiatives drive the growth of Hyderabad’s real estate sector.
The report also identifies some of the best localities to invest in Hyderabad’s real estate sector. These include Kondapur, Gachibowli, Hitech City, Madhapur, Kukatpally, Miyapur, Manikonda, Nallagandla, Uppal, Nagole, etc. These areas offer high returns on investment, good rental income, and capital appreciation potential.
What are the benefits of investing in land in Hyderabad?
Investing in land in Hyderabad can be a lucrative option for investors who are looking for long-term returns and capital appreciation. Land is a scarce and valuable asset that can appreciate well over time. Land is also a flexible and low-maintenance asset that gives the investor complete control over the type and extent of development. Some of the benefits of investing in land in Hyderabad are:
Excellent infrastructure and connectivity:
Hyderabad is a well-developed city that offers excellent infrastructure and connectivity facilities to its residents. The city has leading schools, colleges, hospitals, malls, multiplexes, etc., that cater to the needs of the population. The city also has a robust network of roads, railways, metro rail, buses, cabs, etc., that ensure smooth and hassle-free commuting. It also has an international airport that connects it to major domestic and international destinations.
Market has swallowed the GST pill:
Developers and investors conquered the challenge of integrating GST into their businesses, sparking a resurgence in real estate investments. GST added transparency and accountability while lowering tax burdens for buyers and sellers. It simplified the tax structure and eradicated multiple taxes on real estate transactions.
Development of new locations:
Hyderabad’s real estate market is currently experiencing significant growth, with several emerging areas showing substantial investment potential. These areas, such as Kompally, Shamshabad, Adibatla, Maheshwaram, and Shadnagar, sit in proximity to upcoming industrial corridors and airport zones. Economic activity and employment opportunities in these regions are poised to flourish as a result. Additionally, these locations boast land prices that are notably more affordable compared to established areas in Hyderabad.
Infrastructure development:
Hyderabad is undergoing massive infrastructure development that is enhancing its livability and attractiveness. Some of the major infrastructure projects that are underway or planned in Hyderabad are:
- Strategic Road Development Plan (SRDP): This is a Rs. 23,000 crore project that aims to improve the road network and traffic management in Hyderabad. The project involves the construction of flyovers, underpasses, skyways, junctions, etc., at various locations across the city.
- Hyderabad Metro Rail Project (HMRP): Hyderabad Metro provides a fast, safe, comfortable, and eco-friendly mode of transport to the citizens of Hyderabad. The project includes three metro rail corridors covering a total length of 72 km with 66 stations.
- Hyderabad Metro Phase 2 and 3: This is a Rs. 69,100 crore project that aims to extend the existing Hyderabad Metro Rail network to cover more areas of the city and connect it to the international airport. The project involves the construction of four new metro rail corridors and three extensions of the existing corridors, covering a total length of 309 km with 116 stations.
- Regional Ring Road (RRR): This is a Rs. 12,000 crore project that aims to decongest the traffic in Hyderabad and connect it to the surrounding districts. The project involves the construction of a 338 km long ring road with six lanes that will bypass Hyderabad and link it to Sangareddy, Narsapur, Medak Toopran Gajwel Jagdevpur Bhongir Choutuppal Ibrahimpatnam Chevella Shankarpally and Kandi.
- Pharma City: This is a Rs. 64,000 crore project that aims to create a world-class integrated pharmaceutical cluster in Hyderabad. The project involves the development of a 19,333-acre area near Mucherla village in the Rangareddy district that will house over 400 pharma companies along with common facilities such as effluent treatment plants, warehouses testing labs R&D centers, etc.
Conclusion
Hyderabad beckons as a prime hub for real estate investments, boasting dynamic growth opportunities. The city’s connectivity and amenities shine, fueling rising land prices. Political stability, enhanced infrastructure, surging demand from investors and end-users, competitive pricing, and favorable governmental policies fuel this ascent.
Investors eyeing Hyderabad’s land are drawn by the promise of long-term profitability and capital appreciation. Land, a prized asset, appreciates based on location, development, and market dynamics. Investors also revel in the freedom and control to tailor the land to their preferences or reap higher future profits. Yet, challenges lurk, including legal entanglements, encroachments, and environmental factors. Thus, thorough research and due diligence precede any Hyderabad land investment.