IT tower to spur growth in Hyderabad’s North corridor

Hyderabad: It is a proven fact that the growth of real estate is heavily dependent on the kind of initiatives that a government comes up with. Whether it was driving growth in the Western corridor through setting up of IT parks and airport or whether it was by announcing subsidies for companies that look at […]

Hyderabad: It is a proven fact that the growth of real estate is heavily dependent on the kind of initiatives that a government comes up with. Whether it was driving growth in the Western corridor through setting up of IT parks and airport or whether it was by announcing subsidies for companies that look at Eastern corridor of Hyderabad. Every incentive and programme announced by the government directly or indirectly impacts the growth of real estate in that region.

The setting up of the cyber towers and other IT companies in late 1990s or early 2000s led to a boom in residential, commercial and official real estate infrastructure in that part of the city. Places like Madhapur, Kondapur, Nanakramguda, Financial District, Miyapur, Kukatpally and other adjoining areas, which were, hitherto — say about 10-15 years back — only rocky terrains, have now become a commercial and residential hub of Hyderabad. These places are now considered the go-to place for big and small technology companies to set up shop and, in turn, have led to a spur in residential properties, along with many malls, cinema theatres and also shopping arenas.

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However, now the Western corridor has started to get somewhat packed with availability of land parcels fast exhausting and also impacted by an increase in traffic and dense population. In this context, the State government decided to come up with the GRID (Growth in Dispersion) policy or Look East policy so as to spread the development in other parts of Hyderabad as well.

While the Eastern corridor, which consists of places like Uppal, LB Nagar have already seen some progress in terms of SEZs and IT companies setting up big campuses, the Northern corridor, which includes places beyond Alwal, Kompally, and Suchitra, is growing organically.

Next big IT hub
In order to make this region on a par with the Western corridor, the State government decided to set up the tallest IT tower in Kandlakoya and this, according to the IT and Industries Minister K T Rama Rao, is the beginning of many other developments that are being planned for this region. The IT tower is set to accommodate 100 companies in the first phase and is expected to create about 50,000 jobs.

The Kompally IT Enterprises Association president Oruganti Venkat, who was instrumental in bringing the tower to Kandlakoya, says that more such towers and big MNCs are evincing interest in setting up their offices in this region due to low cost of property and availability of good talent.

Till about last year, the Northern corridor was known for its warehouses set up by big e-commerce giants like Amazon and Flipkart, and also the ambitious Genome Valley, a destination for research and development clusters focused on life sciences. However, now with the new IT towers being brought to Kandlakoya it could push the growth of real estate – residential, commercial, and official and also lead to an increase in land values.

Growing realty
According to SquareYards.com, the Northern corridor of Hyderabad witnessed a higher supply of independent floors in comparison to villas, apartments, plots and builder floors.

“In terms of budget, the supply of properties in the range of Rs 30 to Rs 60 lakh recorded the highest, followed by Rs 60 Rs 100 lakh properties for the year 2020. The 2BHK apartments were the highest in demand in the same year. The North-Western peripheral areas are widely preferred because of the high employment ratio, infrastructure initiatives, and metro connectivity,” it said.

Experts also point out that the land prices in and around the Kandlakoya IT towers are all set to rise in the coming months even as the places like Kompally and Suchitra have been buzzing with activity in the last decade or so.

From multi-speciality hospitals to international schools to entertainment zones in the form of drive-ins, restaurants and food courts have been growing in the past few years. The rates of residential property have grown exponentially with the land rates also being high. Another big attraction for this corridor is the regional ring road (RRR) that is set to come which is also leading to an increase in the rate of land and other properties.

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