High-rise sales momentum to continue

Hyderabad is the second dominant city in Indian skyline, next to Mumbai, with 8 per cent share of tall buildings in the country. In Hyderabad, only 10-15 per cent of the skyscrapers are office buildings and the rest 85-90 per cent are residential apartment projects

Hyderabad: Hyderabad skyline is ever changing with mushrooming high-rise buildings, particularly in the West of the city. The construction of both residential and commercial skyscrapers is on full swing in the western corridor. Thanks to software industry boom, infrastructural developments, unlimited floor space index (FSI) and huge interest from ultra high net worth individuals (HNIs) and non-resident Indians (NRIs).

Already, several skyscrapers were constructed from Kukatpally to Kokapet. A number of high-rise buildings with 30-60 floors are being built in areas like Kondapur, Madhapur, Gachibowli, Hitech city, Serilingampally, Nallagandla, Tellapur, Kollur, Puppalguda, Narsingi, Manikonda, Khajaguda, Shaikpet, Raidurg, TSPA Junction, Kothaguda, Kismatpur, Bandlaguda, Miyapur, Bachupally and Gandimaisamma.

If a developer has acquired minimum 3-4 acre land, he is immediately starting a sky villa project with a minimum of 40 floors and five towers. Thanks to unlimited FSI policy in the State. Both home buyers and investors are in a mad rush for luxury living spaces and larger-sized units at high rise buildings in the city. It has become a status symbol to own or live-in these properties. According to the real estate experts, almost 70 per cent of these apartments were sold off and the sales momentum is likely to continue for more years. Some of them also anticipate that the construction of high-rises may reach a saturation point in West Hyderabad, and it is not viable to build them in other parts of the city due to various reasons.

National Real Estate Development Council (NAREDCO) Telangana Chapter is planning to do a demand-supply analysis to estimate the requirement of high-rise apartment projects in Hyderabad. B Sunil Chandra Reddy, President – NAREDCO Telangana, said: “The demand for sky apartments in Hyderabad is increasing rapidly and it will continue until the State government keeps attracting the investments.”

A lot of investments are coming up in Telangana from across the country and rest of the world over the last few years. This has given a boost to the real estate developers to cater to the housing needs of the people in all categories. Along with other segments, high-rise buildings are also witnessing growth. However, this has entirely changed the skyline of the city,” he added.

The high-rise buildings are not new to the city. YS Rajasekhar Reddy-led government of erstwhile Andhra Pradesh had introduced unlimited FSI in 2006. Lanco Infratech Limited had developed Lanco Hills Apartments in Manikonda with 12 towers, each having 35 floors as early as 2007. However, this trend has picked up recently with the growing demand for larges spaces post-Covid.

Global property consultant CBRE has recently come up with a report – ‘Sky is the limit – Rise of tall buildings in India’. According to it, Hyderabad is the second dominant city in Indian skyline, next to Mumbai, with 8 per cent share of tall buildings in the country. In Hyderabad, only 10-15 per cent of the skyscrapers are office buildings and the rest 85-90 per cent are residential apartment projects. NAREDCO Telangana Executive Vice President and Megasri Constructions Director K Sreedhar Reddy said, “Though many skyscrapers are coming up in the city, the housing prices are still affordable unlike Mumbai or Chennai. With the skyrocketing land rates and sophisticated infrastructure in the West Hyderabad, the cost of housing units would have gone beyond the reach of common man.”

“These days, the prices of flats in residential apartment are not less than Rs 12,000 per sq ft in even tier-2 cities like Pune and Indore. On the other hand, the housing prices in Hyderabad are within the range of Rs 10,000 per sq ft. This is only because of the unlimited FSI. Just like other cities, if the government imposes restriction of the FSI, the rates will escalate much higher,” he opined.