The auction of the seven land parcels spanning 45.33 acres at Neopolis layout raised Rs 3,320 crore.
A plot near Hyderabad sold for a whopping Rs 100 crore per acre at an online auction, setting a new record for land prices in Telangana. The highest bid for the 3.6-acre plot in Kokapet was Rs 362 crore, made by Rajapushpa Properties Private Limited for Happi Heights Neopolis.
The auction of the seven land parcels spanning 45.33 acres at Neopolis layout raised Rs 3,320 crore for Hyderabad Metropolitan Development Authority. The average bid was Rs 73.23 crore per acre and the lowest being Rs 67.25 crore.
The highest bid did not cross Rs 60 crore during Phase-I of the Neopolis auction in July 2021 when 49 acres were sold. The average was around Rs 40 crore.
Arvind Kumar, Telangana's special chief secretary for Urban Infrastructure and Development, said the land rates have risen due to multiple factors like state-of-the-art infrastructure and greenfield projects.
"36 and 45-metre roads are actually unheard of. Then there is a dedicated 240 KV substation and seamless connectivity to Outer Ring Road trumpet junction, a clear title and strategic location, since it is adjacent to ORR, just 30 minutes from Hyderabad's Rajiv Gandhi International Airport," said Mr Kumar.
"The land parcels are meant for high rise buildings with unlimited Floor Space Index," he added.
Critics have pointed out that the steep rise in land prices can threaten the city's attractiveness as an affordable real estate market as there is always competition with cities like Bengaluru.
Mr Kumar differed with this view: "It is a price discovery by the market. With the residential sector already bullish, the rates fit into the prevailing rates, with average at Rs 73 crore per acre."
Buoyed by the success of the Neopolis layout sale, the government has announced another greenfield workstation at Budwel. The registrations are now open for 14 plots spanning 100 acres, to be auctioned on August 10.
This includes three plots of less than five acres, nine plots of up to eight acres and two plots over 10 acres.