Telangana struck gold in Davos on the first day of the World Economic Forum, striking two deals with an investment of Rs 1,000 crore. Hyderabad, the largest city in the state, would be one of the main beneficiaries.
With us too, the city of pearls has become the favorite place for land transactions. According to a recent report by property consultant Anarock, of the 1,237 acres of land deals blocked by property developers since January this year, Hyderabad accounted for 59%, or 715 acres to be exact.
A big chunk of land in Hyderabad, 600 acres, has been bought by Hetero Group at Rs 350 crore from an undisclosed seller. The pharmaceutical company did not disclose the proposed development plan for the plot. Microsoft also purchased 40 acres for a data development center.
Unlike Hyderabad’s 715 acres, which includes a deal with UAE-based Lulu Group, Bengaluru saw three separate deals for 140 acres and the National Capital Region of Delhi (NCR) saw the sale of 106.3 acres through five transactions.
Pune saw five separate deals for over 91.1 acres, and land-scarce Mumbai Metropolitan Region (MMR) saw five deals for 54.85 acres, all for residential developments.
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The total acreage traded through 28 deals this year was 38.3% higher than the 763 acres traded through 14 deals from January to June 2021, the report found. These agreements were for residential, mixed-use, data center and logistics center developments.
Of the total deals in 2022, 351 acres across 18 deals were for residential developments. According to Anarock, major developers and entities that have purchased plots of land for residential developments include Godrej Properties, Oberoi Realty and Mahindra LifeSpaces, among others.
“Land remains an important priority area for the sector post-COVID, with many well-capitalized developers and other entities closing deals in the first five months of 2022,” said Anuj Puri, President of Anarock.
“Compared to the first half of 2021, the number of transactions has doubled, and there is still more than a month before the half year,” he said, adding residential construction should remain the priority of real estate developers, despite the rise in interest rates.
“Strong housing demand has not lost momentum despite rising interest rates and house prices,” he said, adding, “However, these two factors may still be reflected in the momentum to come”.
First post: STI