“Exorbitant cost of property here is driven by high cost of land. And given it has a limited land bank, courtesy the congestion, developers cannot build big projects or offer the range of common amenities that they usually do in high-end communities,” said DS Prasad, director, Aparna Constructions, among the leading realty firms in Hyderabad.
As per current market rates, a house in Banjara Hills can cost a buyer anywhere upwards of Rs 4-5 crore. Land price ranges from Rs 1.2 lakh to 1.8 lakh per square yard.
Drawing parallels with Aparna’s elite project in Shaikpet – Aparna One –priced at Rs 12,000 per square feet (sft), Prasad said: “It’s almost as expensive as a property in Banjara Hills, but we have already sold 40 of the 440 units there because of the additional features, including a sprawling clubhouse, up to four parking lots, etc. It isn’t possible in the core city.”
Perhaps that explains why at least two projects in Banjara Hills are struggling to find customers. “If buyers can get a villa for the same price in Kokapet or Gachibowli, why would they invest in Banjara Hills,” said Veera Babu, managing director of the real estate services firm, Cushman & Wakefield (Hyderabad). He added: “Given the area also has a restriction on height (of 15 metres), it makes little economic sense for a developer as well.”
While existing players admit to slow sales, they insist that the market has potential for future growth. “If you compare this premier market with those in Chennai and Bengaluru, it is cheaper. Also, such areas attract a niche clientele – mostly the business class. It cannot be compared to apartments in Gachibowli or elsewhere along the western corridor,” said Satyasish Rath, consultant with Signature Developers.