)
Hyderabad evolved as a preferred investment destination during 2007-2008. Both foreign and domestic private equity investors joined hands with local developers and invested in new projects or those under construction. Most investors opted for residential and mixed use developments. Unlike other cities in India, Hyderabad is still affordable. Property prices in the prime precincts are relatively less when compared to other cities. Therefore, it is a good time for investors to consider this city to gain the benefits of planned economic development and infrastructure development.
The recently passed Telangana Bill is likely to end the political uncertainty Hyderabad faced for the past few years. Given its state-of-the-art infrastructure and that it is the most developed city in the state, investors looking at Hyderabad will find the current period favourable, as property valuations are still low. Home prices will remain stable for the interim but will eventually begin rising steadily, since Hyderabad has immense growth potential, being a key information technology/information technology-enabled services city.
The IT/ITEs sector is the backbone industry of Hyderabad. It is increasing its footprint in new precincts, apart from the existing IT hubs, HITEC City and Gachibowli. All these new precincts are driving residential demand as well. One of the most promising locations in this respect is Attapur.
This is an upcoming location, mostly witnessing demand from the middle income group. The key demand driver is the improved connectivity of Attapur with HITEC City and Gachibowli, key IT hubs of the city by the old Mumbai Highway and good connectivity with the international airport.
Being close to Mehdipatnam, an old residential and retail location, Attapur also witnesses good retail activity. Retailers such as Spencer's Hyper Mart, Yes Mart and the Reliance Digital are present on the high street. M-Cube Mall is expected to be operational in three to six months. As it is mostly a middle class location residential projects are priced between Rs 2,800 and Rs 2,900 a sq ft.
The writer is managing director, Attapur, Hyderabad, JLL India
