Hyderabad, the capital and booming tech city in Telangana has reached an astonishing milestone in land prices. A prime plot in Kokapet has been sold for an unprecedented ₹100 crore per acre in an online auction, breaking all previous records in the state. The final bid for this 3.6-acre plot, made by Rajapushpa Properties Private Limited, was a staggering ₹362 crore.
The Hyderabad Metropolitan Development Authority managed the auction of seven land parcels spread over 45.33 acres at Neopolis layout, gathering a massive total of ₹3,320 crore. The average bid during this auction stood at ₹73.23 crore per acre, with the lowest bid touching ₹67.25 crore.
These figures show a remarkable rise from Phase-I of the Neopolis auction, conducted in July 2021, when 49 acres were sold, and the highest bid didn’t exceed ₹60 crore. Back then, the average bid was around ₹40 crore.
Arvind Kumar, Telangana’s special chief secretary for Urban Infrastructure and Development, has attributed this tremendous growth in land prices to a combination of factors including state-of-the-art infrastructure and the strategic location of greenfield projects. Kumar highlighted the unique features of the area, such as 36 and 45-metre roads, a dedicated 240 KV substation, and seamless connectivity to the Outer Ring Road.
He also pointed out the land’s strategic location, being adjacent to the ORR and just 30 minutes from Hyderabad’s Rajiv Gandhi International Airport. “The land parcels are meant for high-rise buildings with unlimited Floor Space Index,” he said, elaborating on the potential for real estate development.
Despite the excitement around this record-breaking auction, some critics have expressed concern that the rapid escalation in land prices might undermine Hyderabad’s appeal as an affordable real estate market. They argue that the city needs to maintain its competitive edge against other bustling tech hubs like Bengaluru.
Kumar, however, disagreed with this perspective. He believes that the current prices reflect the market’s natural discovery process, fitting well into the prevailing rates, especially since the residential sector is already bullish.
Encouraged by the success of the Neopolis layout sale, the government has unveiled plans for another greenfield workstation at Budwel. Registrations are now open for 14 plots spanning 100 acres, and the auction is scheduled for August 10.
This event marks a significant chapter in Hyderabad’s growth story, showcasing its emergence as a prime destination for both residential and commercial development.