Here's Why Warangal Will Emerge As A Promising Real Estate Market

Warangal, a city 148 kms from Hyderabad, is showing signs of a future destination for property investors. Included under the Smart Cities list, Warangal is likely to emerge as the second capital of the state of Telangana. The Minister for Industries, IT and Municipal Administration and Urban Development (MAUD), K T Rama Rao, recently announced that the government would be allocating funds under the state budget and the centre's Smart City scheme, to develop Warangal on par with Hyderabad.

Development plans by the district administration and Greater Warangal Municipal Corporation (GWMC) backed by the capital support of Rs 5,000 crore for the next two years, Smart City plans, with an estimated fund of Rs 2,750 crore and a new Master Plan by March 2018, have been proposed.

The government, which recently released the 'Warangal Vision Document 2028', is aiming to attract investments and increase economic activities, and employment, in IT, ITeS, tourism and hospitality sectors in the urban areas and textiles and food processing in rural areas, the positive impact of which will surely be felt in the real estate industry as well.

PropGuide list the factors that make Warangal an ideal investment destination:

A smart city

The urban agglomeration of Warangal is developing at a rapid pace. The city successfully made it to the second list of proposed Smart Cities in 2016 and the implementation work will be managed by the Greater Warangal Smart City Corporation Limited. The Kakatiya Urban Development Authority (KUDA) and Greater Warangal Municipal Corporation (GWMC) have major plans to develop the city with a focus on the needs for the next 50 years. This will include development of mega townships, smart roads worth Rs 74.80 crore, multi-level car parking projects, rooftop solar project, a ropeway project and many other projects.

Education and job opportunities

Warangal has a thriving economy and is known for its premier institutes like NIT Warangal and Kakatiya University, bustling tourism sector and emerging industrial hubs such as the Mega Textiles Park. It offers what other metropolises offer - a well-developed social infrastructure and a host of career and employment opportunities. Many educational institutions, universities and information technology companies are viewing the city as a good alternative to Hyderabad and establishing their base in Warangal, a scenario that will directly push the housing and rental demand in the city. The city is already an attractive educational hub as it is home to popular engineering and medical colleges in the country. The state government is also aiming at encouraging investment in industries through special incentives and plans for decentralisation of districts in terms of industrialisation.

Infrastructure in Warangal

The Warangal-Hyderabad highway or the National Highway-163 connects the city of Warangal to eastern and central Hyderabad. The development of this corridor is a huge driving factor for the growth of real estate market along the stretch.

Warangal is one of the major railway junctions in the country. Road transportation provided by the state (Telengana State Road Transport Corporation) and private operators ensure hassle-free commuting within the city. To meet the civic infrastructure needs of the rising population, the Warangal Municipal Corporation will get assistance in the form of Rs 300 crore from the government. The Telangana government has also sanctioned funds for road and infrastructure projects like Rs 669 crore worth 69-km Warangal Outer Ring Road (ORR) that will improve connectivity to the National Highways and smaller towns.

Properties in Warangal

Land prices have seen an upward trend in recent years along the emerging industrial corridor of Warangal - Hyderabad Highway and ORR. There are ample options for investment from residential to commercial spaces as well as plots. Some popular localities in Warangal are Kothapet, Kazipet, Hanamkonda and Subedari. Residential properties in Warangal have an average capital value of Rs 2,400 per sqft. Spacious homes ranging in size between 1,200 sqft to 1,500 sqft are priced between Rs 30 lakh to Rs 40 lakh. The prices have gone down by around 10 per cent in the past few years.