Hyderabad is the second-most expensive housing market in the country after Mumbai, according to a recent report by Knight Frank India. In the ‘Affordability Index’ released by Knight Frank India, the EMI-to-income ratio in Hyderabad is 31 per cent, which is only behind Mumbai which stands at 55 per cent. The index is the proportion of household income one needs to pay towards EMI of a house in a particular city.
Speaking to News18, Gummi Ram Reddy, national vice-president of the Confederation of Real Estate Developers’ Association of India (Credai), said, “Hyderabad has one of the biggest advantages of infrastructure, with improving connectivity, logistics, many IT companies and various industries that are investing and setting up shops in Hyderabad. Major world-renowned companies, including Foxconn, are investing in Hyderabad due to its versatile nature.”
He added that the government is also proactively working towards bringing in a lot of development and companies to Hyderabad. This is one of the major factors attributing to the increased demand in the housing market.
Hyderabad, which was earlier affordable compared to other big cities till recently, has witnessed surging land prices in the past two years. The recent e-auction where an acre of government land was sold for a record Rs 100.75 crore at Neopolis Layout in Kokapet has put focus on the land value on the outskirts of the city.
The sensational deal drew sharp reactions from opposition parties. The BJP came out in protest that government land should be protected to serve the interests of the public. Similarly, the Congress said the government was artificially increasing land prices so that they remain out of the reach of the common man.
Before the Kokapet deal happened, the KCR government scrapped GO111 which unlocked 1.32 lakh acres in 84 villages for real estate. This move also met immense criticism as GO 111 protected ecologically sensitive areas around Osmansagar and Himayatsagar. This will also force farmers to give up their agricultural land. Opposition parties have alleged that since the BRS government has accrued massive debt due to its welfare schemes, it is trying to sell government land to replenish its coffers.
N Praveen Kumar, president of Telangana Realtors Association, said, “The main reason behind scrapping GO 111 was to free 32,000 acres of ceiling land, assigned land, bhoodan land etc., that belongs to the government.”
GO 111 sets a 10-km-radius buffer zone to protect the twin reservoirs Osmansagar and Himayatsagar.
Ram Reddy said, “The removal of GO111 is expected to create a large land bank for the commercial and residential needs of the real estate sector. Around 84 villages will be freed from land management restrictions for commercial use. Thousands of acres will be available for more development driving the price to increase in these areas.”
He added that the Kokapet land deal in auction was a huge success, hundreds of crores were invested and same acted as revenue for the government to put this revenue for good use and future development of Telangana.
Pagadala Rangaa Rauv, state general secretary of the Telangana Relators’ Association, said the government is making sure that only rich corporates and politicians can buy land in the state. “When you sell land for Rs 100 crore an acre, it automatically leads to an increase in price of land in neighbouring areas.”
Comments
0 comment