2 Mammoth Land Deals in Hyderabad Worth Thousand Crores Closed in 2021
The city of Hyderabad and its real-estate market have shown remarkable recoveries and market performance with robust growth and a steady ratio between supply & demand for properties. A testament to this strong performance of Hyderabad’s real-estate market is the closing of 2 large land deals for residential development. Land area of 78 acres was sold for a total value of ₹1,050 Crores across the 2 deals. The growth displayed by the city’s real-estate market has also been nothing short of extraordinary with superb quarter-on-quarter evolution.
The 2 deals involved massive land parcels sold in Narsingi (near Outer Ring Road) and Shamshabad. During the early months of 2021, Hyderabad witnessed what is said to be its largest land deal till date when Rajpushpa Properties purchased a 25-acre land parcel in Narsingi for a whopping ₹800 crores which amounts to ₹32 crores per acre or ₹66,115 per sq. yd.
Hyderabad based realty firm IRA Realty Tech purchased 53 acres of land in Shamshabad for an amount of ₹250 crores i.e., ₹4.7 crores per acre and ₹9.750 per sq. yd. These 2 deals ranked amongst the top residential deals across India in the top 7 cities of realty market. 28 land deals are said to been finalized between Q3 2020 and November 2021 involving sale of more than 1,200 acres of land. These 28 deals include only those deals that were bought with the purpose of residential development.
The real-estate market had been in a stagnant state for around 9 months pre-Covid-19 and even grinded to a halt during the lockdown period from March-July 2020. Many developers either opted to focus on debt clearance or completion of already launched projects instead of looking to invest in future prospects. From the month of July 2020, the real-estate market in Hyderabad began its resurgence and several properties popped up on the market for sale. Realtors & developers with deep pockets and financial stability to invest or purchase in land for future projects grabbed the opportunity to obtain large land parcels at reasonable costs and thus the city of pearls witnessed some huge land deals.
IRA Realty and their land parcel in Shamshabad is said to have been a bargain at the cost at which it was bought as available land is scarce around the Shamshabad area. The demand for plotted residential units in & around Shamshabad is very high, so much so that when IRA Realty are expected to complete the development of their land, the value of their land can soar by 4 times from ₹250 crores to around ₹1,000 crores.