Kukatpally has long been considered one of Hyderabad’s most established residential markets. But does an established market automatically make it the better investment today?
In this conversation, Sanjay Kumar Bansal (Managing Director, DEV Developers) joins Devansh Bansal to discuss congestion, future supply, resale dynamics, and why some markets may have already priced in much of their future growth.
A few key moments that set the tone for the conversation:
• What documented traffic and infrastructure challenges reveal about the current state of the Kukatpally market
• How future supply, land releases, and large developer launches could influence resale opportunities over the coming years
• Why infrastructure-led growth corridors such as Rajendranagar may present a different value creation story than mature residential markets
Watch the full interview to hear Sanjay Kumar Bansal’s perspective on congestion, supply, and the difference between a market that is still being priced and one that may already be priced in.
Devansh Bansal:
So the Kukatpally story.
Our CS team has been coming back and telling us that prospects are comparing Rajendranagar unfavorably to Kukatpally. How do we respond to this? Because Kukatpally is a very different location from Shamshabad.
One more thing that we’ve been told, or that we are aware of, is that the Kukatpally market is currently facing significant oversupply. Deccan Chronicle has a resident on record saying it took him more than two hours on a scooter to cross a stretch of land that should have taken him 20 minutes.
Our team should be citing this directly in conversations, should they not?
Sanjay Kumar Bansal:
I understand. As I said, I had to answer this when I selected Rajendranagar. Why Rajendranagar? Why not Kukatpally?
I make money when my customer makes money and vice versa.
First, I say not to compare only Kukatpally. It could be Banjara Hills, it could be Financial District, it could be any other location. Compare it with Rajendranagar.
First, you should compare my product. They don’t compare apples to apples. I am giving ₹1000 per square foot aluminum windows. They are giving UPVC windows. Compare the product category that you are getting in both locations.
Second is the product price. They are already overpriced, and we are still underpriced given the three variables which I said define why Rajendranagar.
Now I’m sure you have all the facts. Ask all the facts and they will fit into one of those three variables.
Devansh Bansal:
Understood.
To begin with, as I’d mentioned, Deccan Chronicle has reported that one stretch of land that should have been covered in 20 minutes took 2 hours. How would you comment on the congestion already existing in Kukatpally?
Sanjay Kumar Bansal:
When so much traffic is moving on 100 feet roads, and there is an absence of all the other modes of transportation, that’s what is bound to happen.
Furthermore, so much development is coming that it will choke the city. The transportation is not ready.
Compared to Rajendranagar, I don’t have a 100 feet road, I have a 250 feet road. I have an ORR, I have an inner ring road, I have a metro rail coming in front of me, I have a high-speed rail coming from here. It will be like Mumbai-Pune. People will love to stay in Hyderabad and go to work in Pune, Chennai, or Bangalore.
Devansh Bansal:
Understood.
Coming to my point number two, I have been told that there has been some uncertainty with project launches and timelines in Kukatpally, and the existing market may take at least another 8 to 10 years to absorb the existing inventory there.
What are your thoughts on this statement?
Sanjay Kumar Bansal:
This is the second point which I was telling.
In Rajendranagar, there might be 10,000 apartments, but in Kukatpally it could be 10 times this inventory.
There is huge inventory coming in high-rises. The price is already high, and appreciating further is very, very difficult compared to Rajendranagar.
Devansh Bansal:
Understood.
Catching hold of your earlier point about infrastructure, you’ve already mentioned that Shamshabad has strong long-term growth drivers, including proposed infrastructure developments like the bullet train, metro expansion, High Court, and quite a few more.
Do we have any such upcoming upgrades in Kukatpally?
Sanjay Kumar Bansal:
Definitely we do have developments, but not on the transportation side and not on the connectivity side.
We have developments on the office creation side, which will create more congestion. But on connectivity, there is no scope because when the roads are 100 feet, you cannot create good other modes of transport. So it’s difficult.
Devansh Bansal:
Understood.
Lastly, I have also seen that GOCL Corporation has been systematically liquidating parts of its 265 acre land bank in Kukatpally.
How will the market fare with so much supply underway in the future, apart from the supply already pre-existing here? With the existing inventory and the inventory coming from buyers who have purchased land to develop from GOCL, what should an investor expect in terms of resale in the coming few years?
Sanjay Kumar Bansal:
I was offered one 5 acre land parcel in that 265 acres of GOCL, and I chose to be in Rajendranagar and not there because of exactly the reason you cited.
There is so much supply coming, and it takes at least 10 years to absorb.
I don’t want to name the developers, but there are 30 acre projects, 20 acre projects, 30 acre projects. Every 3 to 4 years, everybody is undercutting one another.
Before 5 to 7 projects are launched, there are a minimum of 10 to 15 projects which are under permission. They are not launching because the existing inventory is not over.
So the price appreciating—definitely there could be inflationary appreciation—but appreciation because the land supply gets over, or because the inventory supply gets over, looks a little far away. Maybe, as you said, 8 to 10 years away compared to Rajendranagar, which may be 2 to 3 years away.
Devansh Bansal:
I completely agree with you.
Building on your point, I would also like to say that any investor purchasing inventory there right now won’t be able to sell in the next 3 to 4 years. Please correct me if I’m wrong.
He will not be competing with a different reseller when he resells his inventory. He will be competing with a developer coming with a few hundreds of crores in advertising and construction budget.
Like you said, you had been offered a 5 acre land parcel. If you were to buy or develop a parcel there, would you not go to any extent to sell your inventory?
Sanjay Kumar Bansal:
Exactly.
I was just reading today about Noida, and the same thing is happening there.
The price of flats has moved from ₹80 lakhs to ₹1 crore, and from ₹1.5 crores to ₹2 crores in the last 2 years, but the investors have no liquidity.
As an investor, you have a holding capacity. Beyond that, you have to give up. Ultimately everyone is planning to liquidate and make some money.
So if in Kukatpally or similar areas the supply is continuous and keeps coming continuously, then definitely for investors that’s not the market. That’s why we don’t enter as a developer.
