Hyderabad’s Pocharam IT Corridor: A smart investment or a slowing market?

Hyderabad, the capital of Telangana, has long been a magnet for real estate investors, thanks to its burgeoning IT sector, robust infrastructure, and strategic location. However, recent developments have raised questions about its continued allure, particularly in light of the fact that 19 out of 57 Special Economic Zones (SEZs) in the state have become defunct.

This scenario prompts a closer examination of specific localities like Pocharam to assess their viability for investments in flats, apartments, or plots.

The Decline of SEZs in Telangana

Special Economic Zones were established to boost industrial growth by offering tax incentives and simplified regulations. However, in Telangana, several SEZs have failed to take off as planned. Notably, the Fab City SEZ at Raviryala village in Maheshwaram mandal near the international airport at Shamshabad saw a significant portion—900 acres—becoming defunct.

Additionally, private SEZs like Mindspace Parks Private Ltd for IT/ITES at Pocharam and Phoenix Spaces IT SEZ at Puppalguda were also denotified. Factors contributing to this decline include delayed investments, regulatory hurdles, and shifting market dynamics.

Impact on Hyderabad's Real Estate Market

The de-notification of these SEZs has led to concerns about the future of Hyderabad's real estate market. However, it's essential to note that while some SEZs have become defunct, the city's overall economic environment remains robust. The IT sector continues to thrive, and infrastructure development is ongoing, ensuring that Hyderabad retains its appeal to investors.

Pocharam: A Case Study

Pocharam, located in the eastern corridor of Hyderabad, has emerged as a significant residential and commercial hub. The area houses prominent IT campuses, including those of Infosys and Genpact, which have spurred real estate development. One notable project is the Singapore Township, also known as Sanskruti Township, a joint venture between the Andhra Pradesh Housing Board and a Singapore government body. This integrated township comprises 2,080 apartments, including 2-BHK and 3-BHK units, duplexes, and penthouses.

Current Real Estate Trends in Pocharam

The real estate market in Pocharam offers a variety of options for potential investors:

Flats and Apartments: As of recent listings, 2 BHK apartments in Pocharam are available in the range of ₹58 lakh to ₹76 lakh, with sizes varying from 1,150 to 1,230 sq.ft.

3 BHK units are priced between ₹60 lakh and ₹75 lakh, offering sizes from 1,500 to 1,825 sq.ft.

Plots: For those interested in land investment, plots are available in various sizes and price points, depending on the exact location and amenities offered.

Should You Invest in Pocharam?

Investing in Pocharam presents several advantages:

Proximity to IT Hubs: The presence of major IT companies ensures a steady demand for housing, making it attractive for both end-users and investors looking for rental income.

Infrastructure Development: Ongoing infrastructure projects, including road expansions and public transportation enhancements, are set to improve connectivity, further boosting the area's appeal.

Integrated Townships: Developments like Singapore Township offer modern amenities and a community-centric lifestyle, catering to the aspirations of urban dwellers.

However, potential investors should also consider:

Market Dynamics: While the defunct SEZs indicate challenges in certain industrial projects, the residential sector in Pocharam remains buoyant, primarily due to the IT industry's resilience.

Due Diligence: It's crucial to verify the credentials of developers, the legal status of properties, and future infrastructure plans to ensure a sound investment.

Despite the setback of defunct SEZs, Hyderabad's real estate market, particularly in areas like Pocharam, continues to thrive. The sustained growth of the IT sector, coupled with ongoing infrastructure developments, makes Pocharam a promising destination for investing in flats, apartments, or plots. As always, conducting thorough research and due diligence is essential to make informed investment decisions.