Rise in Demand for Plots in Hyderabad Fringes

With large land parcels available in many areas in Hyderabad, particularly in the outskirts of the city, the demand for plotted land in the city has seen an upsurge. The fact that prices are considerably low in recent times has also prompted many investors to buy land with the hope that prices will appreciate in the future. Many developers are also buying large land parcels with the intention of constructing residential projects later on when prices appreciate.

Factors for demand

Besides low prices prevailing in several fringe areas in Hyderabad, there are many other factors that are responsible for this upsurge in demand. The demand is particularly high in areas along the Outer Ring Road (ORR) due to excellent connectivity to other parts of the city. Moreover, due to their strategic location in the vicinity of other developed areas, particularly in the west, such plots have the potential to generate considerable returns in the long term. They can also be developed into residential houses which can either be rented out or sold at a premium. Besides, there is also a demand to invest in HDMA-approved plots due to the guarantee of infrastructure development that developers of such plots offer.

HDMA plots

So, why should buyers invest in HDMA-approved plots?

It is advantageous to invest in HDMA-approved plots as the developers of such plots offer infrastructure development as well. Thereby, they are obliged to provide various amenities that include water supply, electrification as well as drainage system. Besides, it is also essential that the areas surrounding such plots should have other public amenities like asphalted roads, well-lit streets as well as plantations by the side as well as along the road dividers. Due to these plots being developed, investors can also be assured of steady and healthy price appreciation, with good returns guaranteed in the long term. However, due to the higher demand for such plots, buyers would have to shell more money when compared to other plotted land. Bank finance is also easily available for such plots.

Fringe areas beyond city limits

There are many areas, particularly along the fringes where affordable plots are available within a budget of about 20 lakh. Some of these include areas along the Sri Sailem highway, Nandigama, Kothur, Nagaram, Sangareddy, Bibinagar, Medchal, Shankarpalli, Shamirpet, Shadnagar, Muthangi, Ghatkesar etc. Plots in these areas are available within a budget of about 3-10 lakh. Some of these areas like Kothur, Bibinagar, Shadnagar, Medchal and Ghatkesar are comparatively lesser priced at Rs.250-400 per sq.ft, while the other areas are priced between Rs.400-700 per sq.ft.

Fringe areas within city limits

Areas located within the city limits, but towards the fringes, where demand for plotted land is high include Shamirpet, Tellapur, Beeramguda, Bowrampet, Adibatla, Kompally, Bandlaguda, Shamshabad, Pocharam, Chanda nagar, Hakimpet etc. In these areas the price of plotted land ranges between Rs.10-20 lakh. Plot prices in Shamirpet ranges between Rs.600-1200 per sq.ft, in Tellapur between Rs.600-800 per sq.ft, in Beeramguda between Rs.800-1200 per sq.ft, in Bowrampet between Rs.1000-1500 per sq.ft, in Adibatla between Rs.600-800 per sq.ft, in Kompally between Rs.1000-1500 per sq.ft, in Bandlaguda between Rs.600-800 per sq.ft, in Shamshabad between Rs.400-600 per sq.ft, in Pocharam between Rs.500-600 per sq.ft, in Chanda Nagar between Rs.500-600 per sq.ft and in Hakimpet between 800-1000 per sq.ft.

Future Prospects

Investing in affordable plots presents immense potential to buyers due to the price appreciation that areas with plots in the proximity of developed areas presents. Many of these areas like Shamirpet, Chanda Nagar, Shamshabad, Tellapur, Beeramguda and Pocharam have witnessed price appreciation between 5-8% annually, and hence presents good future prospects from an investment point of view.