Hoping to make huge revenues, Telangana State Industrial Infrastructure Corporation (TSIIC) has decided to take up auction six big land parcels totalling 15 acres in Raidurg, Hi-Tec City and Khanamet. This auctioning will help us know where Hyderabad stands with respect to its real estate growth. On the other hand, buyers are choosing Hyderabad, Bengaluru, Kolkata, Chennai and Pune over the prime metros like Mumbai and Delhi.
Post bifurcation there were many reports on how real-estate will fall flat in the newly formed state of Telangana. However, contrary to the speculations, the income through registrations has seen a significant rise from the fiscal year 2015-16 to 2016-17. The revenue increased from Rs 3,100 crore to Rs 3,528 crore while the real growth rate around 14 percent putting Telangana in first position in South India. After Telangana only Kerala has seen a growth by 5percent. The other south India states including Andhra Pradesh saw a dip. The revenue through registrations in AP fell to 4 per cent, 5.61 per cent in Karnataka and 18.36 per cent in Tamil Nadu.
However, 83 per cent of Telangana registrations are from Hyderabad and Ranga Reddy districts only. In West Hyderabad alone, 11,877 houses are estimated to be under construction since last year. There is an increase in sales as well because of the implementation of huge projects. At least 600 houses are taken as a part of each project. Consequently, there is really good increase in prices of real estate.
On the contrary, in counterpart Andhra Pradesh the muddle in capital city construction and drought are obstructing the real estate boom. Sales have been halted around the capital city. The Singapore Consortium has set a condition that government should give permission to others only after the work in their plots is completed. The initial excitement to relocate to Amaravati from Hyderabad is fading. The government’s hoped that the citizens of AP will shift their businesses from Hyderabad to Vijayawada but in vain. With Real estate growing rapidly in Hyderabad, those who wanted to swing to Amaravati are reconsidering their plans. It is known that real estate elites of Rayalaseema and Nellore regions established themselves in Bengaluru.
Hyderabad is in a league of its own and as such is lucrative, so even the employees who are posted in AP are not completing shifting their base including the Chief Minister’s family. It will take time for media and entertainment industry to shift their base, even though they have started operations. By 2019, as the election fever grips in, there might be some movement. Everyone is hopeful about the AP capital and want it to constructed at the earliest. The plains have to be converted into sky-rise buildings, industrial corridors and others which can attract investments to make Amaravati a functional capital.