Date:27/07/2006 URL: http://www.thehindubusinessline.com/2006/07/27/stories/2006072702982100.htm

Back `Zooming land prices may drive companies away from Hyderabad'

Our Bureau

Rates unviable for projects such as IT parks

Residential projects targeting high net worth NRIs could make good propositions.

Hyderabad , July 26

The skyrocketing real estate prices in and around the State Capital is no good news for multinational companies and construction companies.

Mr R. Sridaran, Chief Operating Officer of L&T Info City, has said that the (real estate) rates were unviable for taking up IT parks and other projects seeking to develop space for multinational companies.

Other States

He was delivering a speech on `Sharing the experiences in building the Hi-Tech City' at a Hyderabad Management Association meeting. Relating the experience of his company in developing three landmark IT parks and facilities for global multinationals at Madhapur, he said that companies that were unable to get space at affordable rates might go to other States that are vying hard to attract them. Cities such as Chandigarh and Kolkata might attract those companies.

Increasing Land Prices

He, however, said residential projects targeting high net worth NRIs could make good propositions. The ever-increasing land prices would also drive away the middleclass from the city. He narrated how hard it was to get the necessary clearances when the company began work on the phase-I of the Hi-Tec City (Hyderabad Information Technology Engineering Consulting City) at a location that lacked connectivity.