HYDERABAD: The real estate sector in the Hyderabad Metropolitan Region (HMR) is witnessing significant growth compared to last year. The positive trend is expected to continue in 2025 within GHMC and HMDA limits.
In the first half of 2024, Hyderabad recorded a five-year high in housing sales with a value of Rs 58,481 crore. In office leasing, the city achieved 2.5 million square feet (MSF) of space leased, surpassing the average quarterly leasing activity of 2023 by 11%.
In an informal interaction with reporters, GHMC Commissioner K Ilambarithi and HMDA Metropolitan Commissioner Sarfaraz Ahmed, along with other officials, expressed their commitment to fostering real estate growth in Hyderabad. They highlighted the city’s rapid progress in the sector over the past year.
The establishment of the Hyderabad Disaster Response and Asset Protection Agency (HYDRAA) has had no negative impact on building construction activities, the GHMC chief asserted. On the contrary, building permissions have increased over the past five months, reinforcing Hyderabad’s position as one of India’s fastest-growing real estate markets.
Ilambarithi said emerging policies and an inflow of foreign direct investment (FDI) have further fueled growth in the sector. In November this year, GHMC received 2,078 applications, a 20% increase from the 1,740 applications received last year. Disposals also rose by 40%, with 2,071 applications processed compared to 1,485 last year.
In June this year alone, Hyderabad recorded Rs 4,288 crore in residential property sales. Infrastructure development under the state government’s H-CITI initiative has created a positive atmosphere in the real estate industry, the GHMC commissioner noted. Proposed projects include multi-level flyovers, grade separators, underpasses, junction improvements and road widening, with 38 projects costing Rs 7,032 crore set to begin in the next year.
Under the Comprehensive Road Maintenance Programme (CRMP)–II, 934 roads spanning 1,143 km are planned, with an estimated cost of Rs 3,825 crore. Additionally, 40 works under the Strategic Nala Development Programme (SNDP)-II and 41 works under the National Disaster Mitigation Fund (NDMF), costing Rs 667.28 crore and Rs 291.80 crore respectively, are set to be implemented.
Ilambarithi said Telangana has solidified its position as a top investment destination, doubling its FDI inflows to $3 billion and joining the top five states for investments in India. Six pending projects under the Strategic Road Development Programme (SRDP) including the second phase of the Shilpa Layout flyover, the Aramghar-Zoo Park flyover and others are scheduled for completion next year.
‘Stakeholders reposed faith in city’s growth story’
Meanwhile, HMDA’s Sarfaraz Ahmed noted a significant uptick in real estate applications from July to November this year. Compared to the same period in 2023, applications grew by 45% year-on-year, rising from 1,326 to 1,920. “The number of applications increased during the period when HYDRAA was formed and began its operations,” he said.
Building permission applications increased from 756 to 1,061, marking a 40% YoY growth. Similarly, occupancy certificate applications rose by 20%, and layout applications saw a 190% increase.
Based on the data, there has been a significant and tangible increase in new applications for all types of development permissions, indicating the sustained trust of stakeholders in Hyderabad’s real estate growth story, said Ahmed.
He noted that applications for building permissions have been rising over the past few months compared to the previous year, and all efforts are being made to ensure their disposal within a time-bound manner. “The pendency of building permission files has been reduced by 90%, and there has been a 50% increase in building permission applications between July and November 2024 compared to January-June 2024,” he added.
Ahmed also highlighted the progress of key infrastructure projects. “The works on two elevated corridors passing through defence areas in Secunderabad from Paradise junction to Shamirpet Outer Ring Road (ORR) junction on state highway and Corridor 2 from Paradise junction to Dairy Farm Road on National Highway-44 are expected to commence by the end of January. Additionally, HMDA will begin work on laying a radial road to the Fourth City in 2025,” he said.