Hyderabad-based Lansum Properties has acquired a 3.6-acre land parcel in the Kokapet, for about Rs 200 crore, said people familiar with the development. The land, located in Kokapet, will be utilised for luxury residential development, they said.
The firm has raised also Rs 250 crore from IndusInd Bank to finance the project’s development, according to the people.
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“Land prices have been moving upwards with demand rising from builders. The company has registered the transaction and has also raised construction finance for development,” said one of the persons, who did not wish to be identified.
Lansum Properties will develop a high-end residential project with units priced above Rs 2.4 crore each, featuring three-bedroom, hall and kitchen (BHK) and four-BHK configurations, the people said, adding that the project will have 55 floors, taking advantage of the unlimited floor space index (FSI) available in Hyderabad.
CBRE, the adviser for the deals, declined to comment.
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ET’s queries to Lansum Properties did not elicit a response till press time.
“The residential market in Hyderabad continues to show robust demand, particularly for high-end homes. The proportion of sales registrations for properties priced over Rs 1 crore recorded over 50% growth in March 2024 as compared to the same period last year, further pushing up the weighted average in the city,” a per recent registration data.
The average land price in Hyderabad’s Kokapet IT belt has nearly doubled to Rs 75-80 crore per acre from less than Rs 40 crore in 2021. This has positioned Kokapet as the most expensive real estate segment in the city’s tech corridor and has also propelled it to the top of the charts on the national level.
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“The escalating land prices in Hyderabad are attributed significantly to the absence of a floor space index (FSI) restriction and rising skyscrapers. FAR (floor area ratio) directly impacts market values in a real estate market. Post the government auction the prices have further gone up,” said Syed Umar, managing partner at REXA global, a property consulting firm.
An e-auction of land parcels in Kokapet, located on the outskirts of Hyderabad, set a new record for Telangana, as an acre was sold for Rs 100.8 crore. Happi Heights Neopolis and Rajapushpa Properties submitted the highest bid for 3.6 acres of Neopolis Layout in an online auction. Rajapushpa Properties will be paying Rs 362 crore for the property.
Last year, seven land parcels totalling 45.33 acres were offered for sale. The average selling price was Rs 73.2 crore per acre, with the lowest price recorded at Rs 67.3 crore. The Hyderabad Metropolitan Development Authority successfully raised nearly Rs 3,320 crore from the transaction.
During phase-1 of the Neopolis auction in July 2021, the government sold 49 acres of land. The highest bid did not exceed Rs 60 crore, and the average bid was about Rs 40 crore.
