HYDERABAD: Just a few minutes off the eight-lane Outer Ring Road (ORR) at Exit 2, the scene shifts markedly in Greater Hyderabad. The skyline flattens, roads narrow and become dusty, lighting is sparse, and shops are few and far between. However, there’s no shortage of billboards advertising new residential projects, ongoing constructions, and local property broker offices.
These promotional materials come with enticing offers: “Pay nothing until completion,” “20% now, 20% annually,” and “Zero GST.”
As you drive from Kollur towards Patancheru, pass through Mokila (northwest) and Tellapur (southwest), the landscape remains virtually unchanged. This area is branded by local realtors as the city’s burgeoning ‘budget housing’ destination—just a stone’s throw from Hyderabad’s pricier west.
At first look, prices seem appealing. While homes in the principal IT corridor often sell for upwards of ₹10,000 per square foot, Kollur presents options ranging from ₹6,000 to ₹8,000 on average. Many high-rises in Tellapur and Patancheru are available for ₹90 lakh or more. Mokila also has budget-friendly choices.
Surge in Costs
A closer inspection, however, shows these prices have spiked by 60% to 100% over the past five years. In Kollur—its most aggressively marketed area—villa projects, a significant part of the inventory, are priced significantly higher, with developers quoting between ₹1.5 crore and ₹5 crore for homes in gated communities.
Many of these projects are located in isolation. Sales representatives provide vague answers about basic amenities. At a site in Velimela, a villa hotspot, an executive suggested, “Many international schools are coming up within five kilometers. Yes, the current roads are only 30 feet wide, but plans are in place to eventually widen them to 100 feet, with some internal roads reaching 40 feet.” Handover for these homes is projected for three years from now.
Further along, another high-end villa project representative claimed the area is “preferred by celebrities,” with prices starting at ₹4.5 crore. However, when asked about the nearest hospital, he admitted it’s roughly 20 km away in Gachibowli, and social amenities like restaurants and cinemas are similarly distant.
Basic Amenities Missing
A group of newcomers outside a newly constructed gated community reported waiting for civic officials to assess their project for a water connection. Currently, they rely solely on tanker deliveries. “We also need streetlights—it’s quite dark here after sunset,” one homeowner noted, with each house priced over ₹3 crore.
Realtors express two primary concerns regarding the “unusual pace of growth”: potential oversupply in this area and the unexpected rise in costs.
According to Aju Thomas, president of Trinity Partners, “Almost all new developments are restricted to the western, northwestern, and southwestern parts of Hyderabad. It remains uncertain how sustainable this supply is.” He expressed worry over escalating prices, indicating that developers seem to focus on only 0.5% to 1% of the city’s wealthy population.
Fear of Stagnation
The influx of schemes—including questionable pre-launch offers—has also raised alarms among realtors. “This suggests a lack of funds and may lead to incomplete projects, adversely affecting buyers’ sentiments in the long run,” cautioned a senior real estate consultant.
‘Will Flourish in 3 Years’
While developers acknowledge these concerns and recommend thorough research before investing, they remain optimistic about these outlying areas’ prospects.
M. Nanda Kishore, managing director of Ramky Estates and Farms Ltd, insists that pricing reflects actual economic factors—not hype. “As more people move in, social infrastructure typically follows,” he stated, noting that areas like Tellapur and Kollur should thrive within three years. He also highlighted that public transport is not a strong suit in west Hyderabad, where reliance on private vehicles is prevalent, as seen with Nallagandla, which has transitioned from a budding suburb to one of the city’s most affluent residential locales.
