Will Hyderabad be the most preferred investment destination in 2015?

According to a recent international travel publication report, Hyderabad is the second best place in the world that one should visit in 2015. Also, with the formation of The Information Technology Investment Region (ITIR) , Hyderabad, an upcoming IT investment region jointly developed by Govt of India and Govt of Telangana, realtors feels Hyderabad will soon prove to be a hot investment destination in 2015. ITIR will be developed under Public Private Partnership (PPP) model where private infrastructure developers and IT companies will be allotted land for development.

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Modelled along the lines of Shenzhen SEZ in China and covering regions like Madhapur, Gachibowli, Uppal, Pocharam, Maheswaram, Mamidipalli; ITIR's main aim is to boost Information technology industry in Hyderabad, create employment opportunities and thus drive investments and growth across Hyderabad. It's estimated to create 53 lakh indirect and 15 lakh direct job opportunities for both the IT and hardware manufacturing professionals.  The central approval of the project was received in September 20, 2013. Project will require estimated investment of over 2.19 lakh crore. The Telangana Government also plans to invest additional Rs 4,863 crores to improve the infrastructure which includes the development of metro rail, power, water supply stations and a better road network.  IT majors like Google and Facebook, are planning to expand their operations in the city.

Zone Wise Price Analysis

ITIR project is divided into 5 Zones and is spread across various locations across Hyderabad. Let's explore the 5 zones separately based on price range, infrastructure and location advantages.

Zone I: Cyberabad

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Zone 1 comprises the north western part of ITIR, centering the HiTech city which is close to areas like Madhapur, Kondapur and Gachibowli. As per the plan the surrounding areas of Cyberabad spreading across 87.4 sq km is to be developed further as an IT SEZ. Real estate prices are comparatively higher here, with land prices at Madhapur being the costliest at Rs, 5,476 / sqft, Gachibowli at Rs. 4,409 / sqft, and Kondapur priced at Rs. 3,649 / sqft .

JPS Constructions, Ramky Group, Shanta Sriram are some of the known developers in the area offering a range of 2/3/4 BHK flats ranging from 1280 sq ft to 3333 sq ft.

Zone II: Hardware Park, Fab city, APIIC Work centre and parts of Maheshwaram mandal

This zone lies in the southern region of Hyderabad and is connected to the city via the Outer Ring Road and Srisailam Highway. The average real estate prices here are currently as low as Rs. 2,138 per sq ft and builders like Ramky, MAK and Prajay are offering apartments and villas in varied sizes ranging from 630 sq ft to 9000 sq ft. Brahmani Infratech Pvt Ltd and Indu Group have already been allotted 250 acres of land each in the Hardware Park for developing IT SEZ within the ITIR.

Brahmani Infratech Pvt Ltd is set to develop 150 acres of land as SEZ and 100 acres as residential area with an approximate investment of Rs. 1200 to 1500 cr.

Indu Group is developing 150 acres as 'Point Indu' SEZ, and 100 acres as residential area featuring 2000 residential units. Approximately Rs 2000 crore is expected to be invested.

IT giants TCS and Cognizant are allotted 75 acres and 40 acres of land respectively in APIIC work centre area for IT campus.

 Zone III: Pocharam and Uppal Municipality

Designated in north-eastern part of ITIR plan, the area is well connected to the outer ring road and is in close proximity to the Hyderabad railway station. Uppal, Ghatkesar, Moula Ali, Kushaiguda are some of the neighboring areas.

Currently, the average property prices in Uppal and Pocharam are Rs 2,710/ sq ft and Rs. 1,368/ sq ft respectively. Builders like VSR and SLV estate are offering options of 2/3/4 BHK villas and apartments.

Raheja Corp is set to develop Mindspace SEZ area across 105 acres of land in Uppal and Pocharam area.

Infosys is set to develop the Prakriti Park across 450 acres of land in the Uppal Pocharam area.

Zone IV: Connects Zone I and Zone II via the Outer Ring Road

The ITIR project proposes to connect Cyberabad with Shamsabad via the Outer Ring Road. The Hyderabad Rajiv Gandhi International Airport is located in Shamsabad, and the area lies on the Hyderabad-Bangalore route. Though the area is connected to the main city, it is yet to see any major development in terms of public utility. Real estate prices in Shamsabad are available at a lower price of Rs.1,883/sqft.

Zone V: Connects zone II with zone III via a network of radial roads.

This zone is being developed as a connection between the Shamsabad Airport, Uppal and Pocharam. In future, network of roads are claimed to be constructed, to ease the traffic flow from the airport to the main city. As mentioned above the average property prices in Uppal and Pocharam are comparatively lower at Rs 2,710/ sq ft and Rs. 1,368/ sq ft respectively.

Spread across 50,000 acres of land, the ITIR project is expected to be completed over a period of 25 years in 2 phases. And with ITIR poised to become a self-integrated IT cluster that will foster growth, we believe that long term investor can purchase property now and benefit from project price appreciation in near future.  To know more about other hot investment destinations, visit proptiger.com.