Hyderabad, July 15: Even as the state government is likely to put the long-pending Hyderabad Metro Rail project on the fast track, industry sources say the project will have little or no impact on the real estate market this time.
According to real estate developers in the city, land rates shot up by 15 to 20 per cent in 2008 when the project was first awarded to a consortium led by Maytas Infra Ltd. “The real estate market was already booming in 2008 and the rates of lands within the proximity of Metro Rail corridors soared further by about 20 per cent,’’ C Sudhakar, managing director of Chakilam Constructions, told Express.
“The land rates in areas where the Metro project is coming up are already inflated. Besides, there is apprehension over the prospects of Telangana being given separate statehood. Until the confusion is cleared, we don’t anticipate much impact on real estate prices,’’ said K Premchandra Reddy, managing director of Creative Constructions.
The prevailing rates in places such as Miyapur, Nagole and Gachibowli range between Rs 20,000 and Rs 35,000 a square yard. “The market is stagnant and there is a lull in transactions but we foresee a slight upward momentum, say about 5 per cent, in the residential market along the stretch where the project is coming up,’’ said K Ramana Reddy, managing director of KSR Properties.
The state government in July 2009 scrapped the contract with the Maytas-led consortium as it failed to achieve the financial closure within the stipulated time, and invited fresh bids. Sources said Larsen & Toubro (L&T) emerged as the lowest bidder today to implement the project and an announcement in this regard is expected shortly.
The project covers a total length of 71 km and has three high-density traffic corridors _ Miyapur-LB Nagar (28.87 km, 27 stations), JBS-Falaknuma (14.78 km, 16 stations) and Nagole-Shilparamam (27.51 km, 23 stations).
—Agencies