Lately, the city has been expanding in two opposite directions,
the west and the east zone. HNN spoke to a few experts to compare
their growth prospects on the basis of select criteria.
Hyderabad’s real-estate sector looks like its heading for a
positive turn finally as most real estate experts believe in
sustainable growth for the city in the years to come. To get a
snapshot, we did a comparison between two growth zones of the
city, areas such as Kukatpally, Miyapur, Nizampet, Bachupally in
the west zone and areas like Uppal, Nagole, Pocharam in the east
zone of the city.
It is the most basic criteria to buy a property. The price of any
property is defined by the demand and supply, as perceieved by the
market. The cost of land in that area also defines the price of a
project as the construction cost is more or less the same across
similar accomodations in the city. Sumit Sen, director – sales and
marketing, Prajay Engineers, says, “Going by the demand factor,
the west zone is definitely better as the areas such as Kukatpally
and Miyapur have a higher demand than Uppal and Nagole. People are
not buying on the basis of promised development till the time it
happens.
On an average, a residential property in west zone will cost
around Rs 3000-4000 sq/ft whereas in east it’s around Rs 2500-3000
sq/ft. So the prices in the west zone are definitely higher than
the east as the areas in west are better developed.” Venkat Reddy,
past-president and advisor, Uppal Builder’s Association sees it
from a different perspective, “Though there has been a growth of
around 30 per cent in the east zone, the prices of property are
still lower than the west zone. But the prices might shoot up as
soon as the metro rail service starts.”
A buyer buys a property based on his requirements, either for
investment or for end-use. If it is for the end-use, he should
consider various factors such as location, proximity to work
place, school, education, healthcare and so on. If he is buying
for investment purpose he needs to evaluate the appreciation, risk
factors and opportunities. Niranjan, managing director, Srija
Developers agrees to this crucial aspect as he says, “Rental
returns in west zone are much higher because of the growing
demand, paying capacity of customers and the facilities and
amenities available in few kilometres radius.”
Sen adds some facts to the view, and says “A 2BHK in Uppal can be
rented at around Rs 8000-10000/pm whereas in Kukatpally area the
rent for the same space and quality will be around Rs 13000-
15000/pm. As per the present situation, even if people have to go
to work in Uppal they don’t prefer staying there.”
However Yoganand, chairman, Manjeera constructions, has a
different view, “Rather than the location, the rental returns or
appreciation depend more on the quality of construction, design
value and amenities around. The rate of appreciation is higher in
the west zone. Although in terms of connectivity, both the zones
are equidistant from the airport and are well-connected to the
national highways.”
The market for luxury homes like villas and independent houses is
growing in Hyderabad. The expansion of the city gave an option to
the buyer to invest in a luxury home at almost the same price of
an apartment in any posh locality. Venkat Reddy endorses the east
zone for luxury homes with his reasons. “One can buy an
independent house in Uppal within the budget of Rs 40-50 lakhs in
a gated community.
Someone earning between Rs 40,000-50,000 per month can afford to
buy their house in Uppal which is not the case in the west zone.
The earning capacity has to be much higher as the prices of
independent houses are more in that zone.” Niranjan has a
completely different angle to it as he puts amenities above price.
“In a luxury home, buyers are looking for peace, serenity,
connectivity to city and airport, malls, major star hotels – all
these are majorly spread over west zone. Hence the west zone
provides better options through the current malls, hotels,
hospitals and schools.”
Yoganand supports his view, “The West zone of the city sees more
luxury due to its proximity to the posh localities such as Jubilee
Hills and Hitech city. People living in these areas are more
inclined towards the villas or independent houses.” Sumit Sen
leaves it an open call for buyers as he adds, “A villa in west
zone is starting at around Rs 2.5-3 crores while in the east zone
it’s around Rs 1.5-1.75 crores. It’s up to the buyers to decide if
they want to travel more or save more.”
An area grows with the amenities around it. “Both the zones have
almost same characteristics to be an urban area. The west zone has
an edge over the east because it is closer to the financial
district and wellconnected to the Hitech City area, also known as
the cyber city. The west zone is dominated by the industrial areas
whereas the east zone is more popular for business,” says
Yoganand.
Sumit Sen endorses the west, “Most of the employment is in Banjara
Hills and Hitech city areas, so by default the west zone gets
better and faster development than the east zone. The west zone
has better malls, schools and colleges. However, if the political
stability is maintained in the state, whole Hyderabad will see 30
-40 per cent of growth in real estate sector.”
Even Niranjan seconds his view as he adds, “I would recommend west
zone for a number of reasons such as the proposed Miyapur Metro
station, proposed Miyapour Bus Body station (one of the largest
bus body stations), close proximity to Cyberabad IT Hub, ORR
connectivity- which can take you anywhere in the city in just few
minutes.” However Venkat Reddy sees immense potential in the east
and places his bets on the upcoming Metro Rail to change the game,
“In March, 2015, the first metro will start from Uppal to
Mettuguda which will give these areas great connectivity.
The area also has an international cricket ground where popular
IPL matches take place. Many government and private organisations
help this zone sustain and give employment to many people. Just
Infosys is expected to give employment to 40,000 people in next
two years.”
Yoganand says, “I will rate east zone better in terms of
environment and growth. The area hasn’t been established well and
thus holds a chance to develop in a planned and sustainable way.
The east-zone is well connected to the Warangal highway. This zone
also enjoys better water supply due to the Krishna waters.
A lot of planning and money has gone into developing a good
drainage system for this area and since the area is not over-
commercialised, the pollution is very less.” Venkat Reddy adds,
“East zone is an industry-free zone; it has more than 600 acres of
forest land, which is soon to be developed in botanical parks. The
pollution levels are much lower than the west zone.”
“I will give 4/5 to the west zone of the city while looking at the
growth possibilities I will give 3/5 to the east zone of the
city,” says Sumit Sen. Venkat Reddy gives 5/5 to the east zone as
he recommends east zone throughout all the criteria. “If we have
to define both the zones, we can say the west zone is the one
which has been developed and established whereas the east zone is
the one going to be established and developed. There is some
nucleus in the east zone which gives it the potential to grow,”
says Yoganand as an end note.#KhabarLive