Hyderabad: Steep rise in rate of lands post auction

Hyderabad: Land prices around Madhapur, Boduppal, Attapur and surrounding areas have risen sharply after the auction held by Hyderabad Metropolitan Development Authority recently.

A square yard of land, which cost Rs 63,000 around Madhapur two months back, is now being offered at prices ranging between Rs 1.09 lakh and Rs 1.52 lakh. 
The prices of under-construction unbooked villas that cost around Rs 75 earlier are now being quoted at Rs 1 crore and above.

Inquiries with a few real estate dealers showed that Attapur had emerged as one of the costliest areas, with a square yard costing Rs 1.53 lakh against Rs 50,000 earlier.

“The prime reason for the price increase is that the HMDA auctioned its clear-deed open plots with no litigations to worry about. The buyers increase the price by 30-50 per cent,” Mr Navdeep Singh, a real estate dealer. He noted that the proximity of Attapur to Hitec City and the Shamshabad airport was another key factor.

The cost of constructed residential properties like independent houses and apartments in Chandanagar and Nallgandla have increased steeply, benefiting buyers as the resale value has gone up multi-fold. Mr Pradeep Gunashetty said, “The cost of my flat was around Rs 32 lakhs, but after the HMDA auction the builder has increased the cost of other unsold flats to between Rs 55 lakh and Rs 70 lakh. Property prices have also increased at Mushk Mahal, Mailadeverpally and Neknampur.”

The cost of under-construction villas at Gachibowli, Shadnagar, Kukatpally, Medchal, Rajendranagar and Kadthal are currently above Rs 1 crore, up from about Rs 70 lakh to Rs 90 lakh when the projects opened.

Mr Sudhakar Raju, who purchased a villa for Rs 72 lakh, said it now costs Rs 1.2 crore. Land in Shaikpet, Tellapur, Vanasthalipuram and Shankarpally have also witnessed an increase in real estate value, after the auction.

The HMDA had auctioned 210 open plots and netted Rs 352 crore, the highest earning in auction of plots in 12 years. It received bids of Rs 1.53 lakh per square yard for plots in Attapur against the upset price of Rs 20,000.

The lowest bid was received for plots in Anantaram village near Ghatkesar at Rs 4,500 per sq yard against the upset price of Rs 4,000. Speaking to this newspaper, HMDA commissioner T. Chiranjeevulu said, “This e-auction has discovered the market value of Hyderabad. With the land with the clear title being auctioned, the market rates have skyrocketed. Also, international brands making Hyderabad the location for their head offices has increased the real estate value.”