Despite the looming threat of economic recession, Hyderabad
continues to exhibit all the signs of a growing city,
according to a recent report by the Town and Country
Planning Organisation (TCPO). It is the only city
in India that has been registering a steady growth in
land prices, in sharp contrast to the countrywide trend
of falling real estate prices, over the past seven years.
The TCPO is affiliated to the Union Urban Development
The study entitled, 'Urban Residential Land Price
Scenario - Hyderabad,' says that while almost all
the metropolitan cities in the country witnessed an
artificial boom in land prices touching abnormal heights
in 1996, it is only in Hyderabad that the trend has
continued. In all the other metros, land prices started
levelling out in the post 1996 period. The study covering
74 localities of the city, 18 in east zone, six in north
zone, 11 in south zone,15 in central zone and 24 in
west zone was done to know the urban residential land
prices in different areas between 1994 and 1999. It
shows that the average value of the land in the city
went up from Rs 2,047 per sq yd in 1994 to Rs 3,537
per sq yd in 1999. An increase of 72.8 percent. As compared
to 1994, the increase in price has been moderate during
1997, 1998 and 1999 whereas such an increase has been
sharp during 1995 and 1996.
on the price behaviour in 74 localities of Hyderabad
during 1994-1999, it is apparent that the prices tend
to move towards stability. For instance, the price per
sq yd was Rs 700-1500 in the LB Nagar area in 1994.
This has gone up to Rs 1200-2400 in 1999, showing more
than 80 percent increase in the property value. The
areas that had better facilities coupled with potential
for increase in the margin of profit registered an increase
in the land prices, which went parallel to the speculative
trend. For example, the central zone of Hyderabad followed
by west zone command higher prices. North zone of the
city is placed in the lowest price category. But, there
has been an identical increase in the percentage of
change in land prices across all zones, the report notes.
by the trend, the state government in its 'Vision
2020' document estimated that by the year 2020,
the city would grow to more than three times its current
size. As per the TCPO study, in 1999, in almost a third
of the city, the market rate is higher than the rate
fixed by the government. "Such a situation may
occur given investment sentiments, public perception
and future potential. These are the major contributory
factors which go into the determination of price levels,"
the study says.
The situation is similar with respect to the demand
for land in rent. The study of rental position in 1990
and 1999 in the 30 selected localities of the city,
both commercial and residential, reveals that the demand
for commercial space has been mind boggling. This reflects
the spread of economic activities in the twin cites
at an unprecedented speed, says the report.