During the real estate boom period (2006 to 2008), development in Hyderabad was largely concentrated on Hitec City, while Gachibowli, Nanakramguda and surrounding areas were still in their emerging stages. However, over the past few years, there has been tremendous growth in these areas and their surrounding. IT (information technology) office stock, a mere one million sq ft in 2008, increased to seven million sq ft in the third quarter of financial year 2014. Also, the road network from Hitec City and Linghampally to Nallagandla has improved tremendously.
These are the reasons for the improved interest in Nallagandla, located about eight km from Wipro Junction, three km from the University of Hyderabad and within a travel time of 12 minutes to Wipro Junction. Nallagandla has emerged as a key residential destination for employees from the IT campuses in Gachibowli, Nanakramguda and Vattinagulapally, and for those working in the University of Hyderabad. Additionally, Lingampally railway station is in close proximity and can be reached easily from BHEL Township.
Lingampally and BHEL Township have established social and general infrastructure, from which Nallagandla benefits. Connectivity is being further improved by construction of a flyover across the railway station for easy and fast access to Nallagandla. With Gachibowli, Nanakramguda and surrounding locations expected to witness further growth in the IT/ITeS and BFSI segments, demand for residential projects in Nallagandla will increase in the future.
Nallagandla is largely defined by apartment developments. Some of the key projects here are Aparna Sarovar, Aparna Sarovar Grande, Aparna Cyber Commune, Aparna Cyber Zon, Aparna Cyber Life, Manjeera Diamond Towers and Ramky Cosmos. Pricing for units in these projects starts from Rs 40 lakh and can be as high as Rs 1 crore. Over five years, these projects have witnessed yearly appreciation of 30-45 per cent. This is a significant increase in prices, given the political instability Hyderabad was facing over the last few years.
Overall, this location has seen appreciation of 10-11 per cent. For the short to medium term, Nallagandla will continue to show very healthy appreciation, and also has a good rental market. Rents for residential properties range are Rs 10,000-20,000 a month, based on the quality and type of property.
For investors planning to enter Nallagandla, residential property is the best bet category at this point. This is definitely the right time to invest in the area, as property valuations are currently low in Hyderabad. This window of opportunity is likely to close for retail investors as prices increase.
These are the reasons for the improved interest in Nallagandla, located about eight km from Wipro Junction, three km from the University of Hyderabad and within a travel time of 12 minutes to Wipro Junction. Nallagandla has emerged as a key residential destination for employees from the IT campuses in Gachibowli, Nanakramguda and Vattinagulapally, and for those working in the University of Hyderabad. Additionally, Lingampally railway station is in close proximity and can be reached easily from BHEL Township.
Lingampally and BHEL Township have established social and general infrastructure, from which Nallagandla benefits. Connectivity is being further improved by construction of a flyover across the railway station for easy and fast access to Nallagandla. With Gachibowli, Nanakramguda and surrounding locations expected to witness further growth in the IT/ITeS and BFSI segments, demand for residential projects in Nallagandla will increase in the future.
Nallagandla is largely defined by apartment developments. Some of the key projects here are Aparna Sarovar, Aparna Sarovar Grande, Aparna Cyber Commune, Aparna Cyber Zon, Aparna Cyber Life, Manjeera Diamond Towers and Ramky Cosmos. Pricing for units in these projects starts from Rs 40 lakh and can be as high as Rs 1 crore. Over five years, these projects have witnessed yearly appreciation of 30-45 per cent. This is a significant increase in prices, given the political instability Hyderabad was facing over the last few years.
Overall, this location has seen appreciation of 10-11 per cent. For the short to medium term, Nallagandla will continue to show very healthy appreciation, and also has a good rental market. Rents for residential properties range are Rs 10,000-20,000 a month, based on the quality and type of property.
For investors planning to enter Nallagandla, residential property is the best bet category at this point. This is definitely the right time to invest in the area, as property valuations are currently low in Hyderabad. This window of opportunity is likely to close for retail investors as prices increase.
(The writer is AVP - Research & Real Estate Intelligence Service, JLL India)