Hyderabad: As Nara Lokesh of Andhra Pradesh and Priyank Kharge of Karnataka spar bitterly over infrastructure and investments, Telangana is silently cementing its status as a hot investment destination, reflected by the sky-high demand for land parcels in the state capital and surroundings.
A parcel of land in Hyderabad’s tech corridor went for Rs 177 crore per acre in an auction conducted by the state government earlier this week, which officials say dispels the claims of lull in the real estate sector since Chief Minister Revanth Reddy took over, two years ago.
The record-shattering price is an over 75 percent jump over what was fetched in August 2023, when the then Bharat Rashtra Samithi (BRS) government auctioned land parcels at Kokapet, outside Hyderabad’s Outer Ring Road.
In a record bid at that time, in the auction conducted by Hyderabad Metropolitan Development Authority (HMDA), a 3.6-acre plot in Phase 2 of Neopolis in Kokapet received an offer of Rs 100.75 crore per acre. Two years prior, in July 2021, Neopolis Phase 1 auction had reported the highest bidding of Rs 60 crore per acre.
The land parcels auctioned Monday by the Telangana Industrial Infrastructure Corporation (TGIIC) are located at the Knowledge City, Raidurg, located between Hitech-City and Gachibowli financial district, in Cyberabad.
A 11-acre plot fetched Rs 1,556.5 crore at Rs 141.5 crore per acre, which officials said “marks one of India’s costliest land deals.” There were five bidders in the auction.
In another auction Monday, participated in by 12 bidders, a 7.67-acre plot commanded an astronomical Rs 177 crore per acre totaling to Rs 1,358 crore.
Officials said that in addition to the auction proceeds to the government, these sales shall generate incidental revenue in the form of registration fee, stamp duty etc. totaling up-to Rs 3,135 crore.
Experts point to the phenomenal increase in the land values in Hyderabad, attributing it to the market strength, robust investor sentiment, and the city’s evolution into “a truly global business hub.”
In the same Raidurg, in 2017, land parcels fetched Rs 42.59 crore per acre. The Rs 177 crore per acre now represents a fourfold increase. The land parcel, awarded to MSN Realty, is reportedly planned to be used to construct office buildings.
The remarkable surge in demand, officials say, corresponds with Hyderabad’s emergence as a top destination for Global Capability Centres (GCC) being set up in the country.
In August, inaugurating the US pharma major Eli Lilly’s new technology and innovation facility, Revanth described it as “a clinching proof of Hyderabad’s transformation into a Global GCC Hub in 20 months of Congress government in Telangana.”
The CM said that the GCC growth in Hyderabad, “in line with the Telangana Rising 2047 vision, will help in the state’s roadmap to achieving a One Trillion Dollar economy.”
TGIIC vice-chairman and managing director K.Shashanka told ThePrint that the demand was driven by the world-class infrastructure, robust governance, and a thriving technology and GCC ecosystem in Hyderabad which continues to attract top-tier developers and global corporations.
“The overwhelmingly successful Raidurg auction sets a new benchmark for land value in Telangana. This is the highest-ever price per acre realized in any government-led auction in the state till now,” Shashanka said, terming the Raidurg plots as benchmarking real estate for marquee commercial developments.
“It reflects the strong investor and developers’ confidence in Hyderabad’s long-term potential and Telangana Rising-2047 story. The auction reaffirms our government’s vision under Chief Minister Revanth Reddy, to create a transparent, business-friendly, and high-growth ecosystem.”
Realtors are upbeat, pointing to the sky-high prices for land as a testimony to the strong resurgence of the market, witnessed after two years.
“Hyderabad real estate is again on the move, after a brief lull. We are now seeing a good response, bookings in our projects, and of others too, in areas like Kukatpally, Kokapet, Rajendranagar,” says Venu Vinod, MD, Cybercity Builders and Developers. “Due to Trump fears, Telugus in US are also planning to invest more here as a foothold back-home. Several new projects are being launched and as the prospects look up, pricing is also going up,” he says.
Ajitesh Korupolu, ASBL founder & CEO says, “The Rs 177 per acre demand validates Hyderabad’s strong potential, position vis-a-vis cities like Bengaluru. Commercial office space in Raidurg goes for a rent of Rs 120 per sq ft. And office space growth would have a bearing on the Hyderabad housing market, upping the demand there too.”
Meanwhile, the residential plots, being auctioned by the Telangana Housing Board (THB), are also fetching good revenues for the government to fund its welfare–housing for the poor.
This year, the Rajiv Swagruha Corporation and Housing Board has earned nearly Rs 1,500 crore revenue from auctioning of residential flats and land parcels for commercial and residential use.
For instance, a 7.8-acre land parcel in Kukatpally, a residential hot spot close to IT hub Hitech-City went for Rs 547 crore in an e-auction conducted by the THB in August. Godrej Properties clinched the deal, paying Rs 70 crore per acre.
“While the offset price set was Rs 40 crore, the bid was increased 46 times in three hours’ time,” said V.P.Gautham, vice-chairman, housing board.
Even small plots are commanding a sky-high price in the area. In June, a plot was sold at Rs 2.98 lakh a square yard in Kukatpally. “This is a high record and the price fetched proves that Hyderabad real estate sector is resurging,” Gautham told ThePrint.
As the real estate sector shows revival, building approvals, especially for high rises, too, shot up this year.
The Greater Hyderabad Municipal Corporation’s town planning wing has reported a sharp increase in revenue from Rs 815 crore in 2024 to Rs 1,200 crore from January to August. The upswing is reportedly attributed to the surge in high rises in the city, some 50 floors and above. As many as 7,301 buildings permissions were given till August this calendar year.
(Edited by Tony Rai)