Hyderabad Remains More Affordable Than Other Metros: PRR Developers MD

SAMUEL JOSHUA 

Land prices in Hyderabad’s western suburbs have climbed from a few lakhs of rupees an acre to tens of crores over the past three decades, changing the economics of residential development. Developers are now forced to balance rising land acquisition costs with the need to offer homes that fit buyers’ budgets.

“Even today, Hyderabad is 20% to 25% lower in rates compared with Bengaluru, Gurgaon, Delhi, and Pune -- in terms of rent, construction value, and land cost,” said Anjaneya Raju, the Managing Director of PRR Developers.

Raju entered the construction industry in 1993, working with a construction company owned by his brother. He became a director in 2007 and worked on several projects before venturing out independently in 2023. Over the years, he witnessed changes in land values, competition among developers, and the budgets homebuyers are willing to spend.

The rise in land prices illustrates how much the market has changed. Raju recalled that an acre in Nizampet cost around ₹4 lakh to ₹5 lakh in 1993, while current values are around ₹45 crore to ₹50 crore. In Mallampet, land that cost around ₹4 lakh to ₹5 lakh an acre in 2000 is now valued at ₹20 crore to ₹22 crore, he said.

“When we started in Mallampet, there was only one building. Today, around 20 builders are operating there,” Raju noted, describing the area's transformation into an active residential market.

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Luxury Villas at Shankarpally & Patancheru

PRR Developers is targeting the premium housing segment through PRR Venetia, a villa project spread across 9.2 acres near Shankarpally.

The development comprises 77 villas in two configurations, measuring 4,500 sq ft and 5,250 sq ft. Located around 4 km from the Mokila-Shankarpally stretch, the project is progressing towards completion by March 2027, according to Raju.

The company is also exploring homes for buyers with more limited budgets, particularly those looking for apartments rather than premium villas. Raju believes that developers need to consider what customers can afford when planning new projects.

“We are planning to build two-bedroom apartments priced between ₹50 lakh and ₹60 lakh around ORR Exit 4, in areas such as Mallampet and Borampet, as there is demand for homes in this segment,” he added.

PRR Developers is also planning a villa project in Patancheru, spread across 12 acres and comprising 160 villas. The launch is expected around February or March 2027, Raju noted.

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NRIs vs Domestic Homebuyers

The company's buyers include business owners and non-resident Indians (NRIs) looking for spacious homes.

However, Raju said that demand from NRI buyers has moderated, making domestic buyer preferences an important consideration in project planning.

Looking ahead, Anjaneyan Raju expects Hyderabad to remain competitive against other major property markets over the next five years. He believes the city’s appeal will depend on developers maintaining construction quality and keeping prices within buyers’ reach to sustain demand.