Hyderabad Real Estate Developers of late, Hyderabad has witnessed an astronomical growth in land prices. The real estate development business has definitely seen a major upswing. Successive governments at the centre have implemented policies conducive for housing construction. Income tax exemptions for residential complexes, IT parks and BPO centers have helped. IT exemptions also extend to the revenues on rentals from IT parks. The liberal sanction of housing loans, boom in pay scales with the advent of the IT sector, and international corporate gaining a foothold have all led to a big increase in infrastructure and development activity in the residential and commercial areas. This growth is mainly due to the IT boom of the last 12 years or so and also the retail industry growth. Certain parts of the city have seen prices rise 20 times in value over the last few years. One of the most noticeable developments in the city over the last few years has been the spawning of a number of mega malls. This is due to a spurt in demand in the retail business and also the relatively lower commercial price in the industry in Hyderabad when compared to some other cosmopolitan cities in the country. The demographic of young professional employees is rising in Hyderabad and malls cater to their needs. The advent of the information technology companies has resulted in a lot of high-income bachelors and youngsters. The disposable income for this group is amongst the highest and is matched by a propensity to spend on consumer goods. The housing boom and the real estate development for the commercial buildings in Cyberabad have led to the sudden increase in land prices.

DEVELOPERS IN HYDERABAD

Development of specialized IT infrastructure by private players has gained over the last ten years after the Government kicked off HITEC City.

This led many developers to tap several small and medium-sized IT companies and paved the way for several independent specialized infrastructure projects.

OUT OF STATE DEVELOPERS

While there are several developers in the city, the huge growth in the market attracted major developers from around the country. Some of these developers are: -

1) The Mumbai based Raheja group has already completed part of the planned 6 million square foot complex.

2) The Pune-based DS Kulkarni Developers Limited (DSKDL), which is a part of the Rs.1,200-crore DSK group, is planning to undertake residential construction projects in Hyderabad.

Simultaneously, some overseas companies have evinced interest in infrastructure development in the State.

A fresh investment of $1 billion is expected from US developers. Some large American corporations, construction companies and real estate developers are investing in this fund. A major San Francisco based developer is expected to use the fund for developing tech parks according to US specifications. However, the exact details of the total allocation of investments is not known.
Ascendas of Singapre has already bought an IT park in Hyderabad from Vannenberg Technologies.

DEVELOPERS FROM THE CITY

Amongst local developers, the Jayabheri Group, Babu Khan Builders, Janapriya Engineers Syndicate, SMR and Sanali are amongst the biggest builders in the industry.

1) The Jayabheri group has already undertaken some massive projects such as the Jayabheri Park and Jayabheri Enclave. Jayabheri Park consists of a lake and recreational facilities. Jayabheri Enclave is a fully developed housing colony with water supply, transformers and other necessities and amenities built in.

2) Babu Khan Builders is probably amongst the oldest real estate developers in the city. They have ventured into most areas of construction including industrial ventures, commercial complexes and residential apartments. Some of their most prominent buildings include Babukhan Estates, Babukhan Chambers, Deccan Towers and Babukhan Mall.

3) Lumbini Constructions Limited is another company that is undertaking many projects in anticipation of the city’s rising infrastructure needs. The projects include malls in residential areas, office complexes, residential apartments and other buildings. These builders are also planning projects in other cities like Bangalore.

4) Ashoka Builders is another big name in the city who have completed over six lakh

sft of residential area and over four lakhs SFT of ongoing constructions for residential and commercial constructions.

5) Janapriya Engineers Syndicate was amongst the first builders in the city to offer apartments for lower and middle income groups. They have realized that there is now a larger market for luxury apartments and commercial complexes and have accordingly changed direction. They have forayed into commercial complexes, multiplexes and IT parks as there is vast potential for high sources of income in these specific areas.

6) SMR Builders are another group who have been around for more than a decade. The company is involved mainly involved in the construction of expensive residential flats, commercial complexes and independent sites in Hyderabad. Most of their constructions are in the West Marredpally area of Hyderabad and the neighboring Secunderabad. However, they are planning projects in Cyberabad, Madhapur and Banjara Hills.

7) Sanali Group-Remax Constructions, the flagship company of the Sanali Group is involved in the building of colonies, apartments, commercial complexes, infotech parks and shopping malls. They have constructed buildings for lease and also for outright sale. Their completed projects include buildings in Mehdipatnam, Jubilee Hills, Secunderabad, and Abids amongst other places.

Giving these private players a run for their money will be the state owned Andhra Pradesh Housing Board which has signed up with a Malaysian and a Singaporean group to develop integrated townships in order to catch up with the demand-supply mismatch.

POTENTIAL OF REAL ESTATE DEVELOPMENT

The prices of these properties seem to be rising everyday and yet buyers are snapping them up. The question is whether these rising prices are sustainable over a period of time. Most of the developers know that with the new airport and Fabcity coming up, investment in the area is bound to go up. More corporates setting up shop will lead to more infrastructure and developed housing colonies. This is the reason that there is a rush to develop real estate at this super fast pace. However, it is essential that while encouraging high density development there should be adequate free space and environmental balance should be maintained.