Hyderabad real estate boom

Hyderabad real estate is booming and how! Hyderabad, synonymous with rich history, culture and architecture is touted as a unique place where north India meets south India both geographically and culturally. With a good infrastructure in place and a ‘heir apparent' status of the IT city tag, Hyderabad's soaring in popularity not only as a tech savy or global city as President Bush terms it, but for its unprecedented growth in the real estate sector. The fast changing skyline of Hyderabad with swanky commercial establishments and flyovers spread across the nodal areas of the city has provided the much needed face lift to Hyderabad which was once considered by many as a ‘dull place to live in'.

In the last 3-4 years, Hyderabad is striving hard to take the mantle of the global city tag from Bangalore what with t he development of a township with state-of-the-art facilities called HITEC (Hyderabad Information Technology Engineering Consultancy)City prompted several Information Technology(IT) and Information Technology Enabled Services(ITES) companies to setup operations in the city. An aggressive promotion of growth in this area has led civic boosters to call the city 'Cyberabad'. This unparalleled IT boom has sent real estate prices skyrocketing in Hyderabad. With more and more IT companies making a beeline to the Andhra Pradesh capital and the city bagging the prestigious $3-billion Fab City project, Hyderabad has started growing by leaps and bounds.

President George Bush's recent visit to the city further goes to prove that Hyderabad is the new face of globalization and modernity. Hyderabad's giant strides is not just limited to the IT sector per se. A brief visit to this city which was once home to the richest man in the world confirms the fact that it has successfully blend the old world charm and the trappings of modernization with subtle ingenuity. Better quality of life, Industry friendly government, low crime rate, quick availability of connectivity, shorter commuting distance within the city as compared to other metros has attracted investors and common man alike.

The new international airport scheduled to be ready by 2008 along with fabcity, the outer ring road with satellite townships and the proposed mass rapid transit system will usurp Hyderabad as the most sought out destination for real estate developers. “The market has never been so good” is a sentiment echoed by most of the city based investors and real estate developers. The jump in Hyderabad's real estate prices not only in and around HITEC city but in other pockets of the city like Begumpet, Malkajgiri and certain areas in Secunderabad bears witness to the fact that the overall development in the pearl city has gained momentum. The city based GVK and GMR group ascertain the role played by Hyderabad Urban Development Authority(HUDA), who were quick enough to realize the tremendous potential the real estate industry has and the impact it can have on the economy if given due importance. True to its ideals, HUDA recently succeeded in raising substantial amount by bidding the prime land near the road leading to HITEC CITY. A total of 21 bidders participated in what was described as the mother of all auctions. The Rs.50 million ($1.12 million) earnest money deposit (EMD) sought for participation in the auction was the highest in the city so far.

The GVK and GMR, which bagged the contracts for the modernisation of the Mumbai and Delhi airports, Dubai-based Emmar, Bangalore-based Prestige, the Mumbai-based Rahejas, Hyatt and Reliance were among the prominent real estate developers and corporates who participated in the bidding.

'The city has enormous potential for growth and that is why so many prominent builders and firms evinced keen interest in the bid,' said HUDA vice chairman Jayesh Ranjan. “Hyderabad is emerging as a key market in India's growth story and the land is worth the price we are paying,” said Kishore Goeti, director, investment, ICICI Venture, which has 60 percent stake in the project. Maytas and Nagarjuna Construction together hold the remaining 40 percent. Assured of several relaxations in building norms by HUDA, the consortium plans to build a five-star hotel and shopping malls on the prime land.