Hyderabad: Realty development in areas surrounding Gachibowli
Many areas in Hyderabad like 
, Tellapur, Lollur and Nadagalla have seen an increased frenzy in real estate activity in recent times. This is inspite of the political uncertainty and the market fluctuations surrounding the city. Some of the areas where there has been considerable real estate activity include areas in the vicinity of Gachibowli , as well as the financial districts on the western part of the city. Besides, these areas have the potential of creating more than 1,00,000 jobs every year. Moreover, due to the presence of the Outer Ring Road (ORR) in close proximity, the social infrastructure around these areas has also improved considerably.
End users primary drivers of realty market:
The land prices in Kollur range between Rs.5000-Rs.6,500 per sq.yd, while the prices in areas surrounding Gachibowli and the financial districts range between Rs.18,000-Rs.25,000 per sq.yd. There are a few areas in Gachibowli itself that command prices between Rs.25,000-Rs.40,000 per sq.yd. The current market scenario in the city is such that the end users are the primary drivers of the realty market. Short-term investors comprise about 30-40% of the real estate investors while long-term investors constitute about 30%. The remaining 20% comprise institutional investors.
Demand for land high in areas surrounding Gachibowli:
Demand for land in Hyderabad is considerably higher in areas like Mokila, Shankarpally, Adibatla and Kollur. Property rates are particularly higher in Adibatla due to the proposed Aerospace, SEZ and IT parks coming up in the area. The Andhra Pradesh government has also allotted 72 acres of land behind the International airport to the IT major, TCS. Their new campus here is expected to be completed by March, 2014, where an estimated 3,500 professionals would be employed. It is estimated that by 2016 the workforce here would be enhanced to 60,000.
AP govt allots land for IT majors:
The state government has also allotted 42 acres of land in Adibatla to another IT major, Cognizant Technology, for the construction of 6,00,000 sq.ft of their campus here. Besides, the government has also allotted several other land parcels in the area to other IT/ITES companies. It is estimated that about 400-500 acres of land allotted by the government to different companies, with the Tata Group of Companies bagging a major portion of the land.
Govt allots land for the aeronautical industry:
Tata Sikorsky Aerostructures Ltd and Tata Lockheed Martin Aerostructures Ltd are using part of the land allotted in Adibatla to the Tata group to manufacture helicopters and other ancillary products, which are exported to the US. Besides, the state government has also allotted land in this area for the establishment of 19 ancillary industries providing supplies for aircraft production companies. There is yet another company that is proposed to be allotted about 500 acres of land in Adibatla for manufacturing helicopters, besides constructing an aeronautical engineering college.
Favourable factors for real estate investment:
The interest evinced by MNCs and other companies to set up units in Hyderabad is based on various favourable factors that the city can boast of. They include the availability of skilled and unskilled labourers, competitive land prices as well as 25% less overhead prices compared to other major cities in India. As a result of the developmental activities undertaken in these areas, there is bound to be an upsurge in the residential real estate market surrounding these areas, which would augur well for them in the long run.
