Property Sale Plunge In Hyderabad In The First Half Of 2014

October 15th, 2014

After following so many fruitful surveys and going through the different statistical results, the result is finally out, for the first half of 2014. According to the latest news feed, it has been found out that the property sale has boosted up the real estate values in Hyderabad for more than an estimated amount of 27% and the result landed to somewhat around 7300 units. This news is a solid one and stated by the well known consultancy firm. The answer came after thorough research, and the result was definitely good news for the real estate owners and investors, planning to invest a lump some amount of money in the Hyderabad real estate values.

After going through the comprehensive analysis, associated with the official and residential areas and also after following up the present market performance and scenario category, it has been found out that the soaring price range of such real estate values in Hyderabad is a major increment within January to June, of this year, that is, 2014. Moreover, it has also been found out that the instability along with the alarming impact on the project can be seen after the political instable nature. This demand of the service can be seen for a period of 6 months of your value added time.

Moreover, the latest survey also shows that the office market is going to be down with a rate of 25%, on the yearly basis and during the first half, of this category. This is also going to present out the bleak picture and it will be seen in the second half. Well, this is an estimated segment and you will come across the right option, on the cards. There are various other options, related with the same field. On the other hand, it has also been projected to see some of the sustained growth of the demand, in this futuristic segment.

The realty market of the Hyderabad option has been a growing option, related with the compounded option of the annual growth rate. This is related with a growth rate, based on an annual basis and the amount will be somewhat around 4.9%. This status has been a stagnant one still 2010. Well, in the middle the performance bar was a little bit underperformed, when compared with the other markets, which are solely driven by ITES and also the IT market hub. However, even though the market might have down trodden for some time, but in this present situation, it has taken up the speed and once again leading the chart.

The drop in the absorption number is associated with the first half of 2014, but the demand is set to get picked up in the second category. It will show some flying colors as the festive season is going to get kicked up and the region will live up to the growing expectations. The hike in the residential areas is also somewhat unexpected in the Hyderabad zone and it is beyond expectation now. This residential hike can be seen from the first half, of 2014.

Creation Of Telengana- A Boost To The Real Estate Industry In Hyderabad

August 7th, 2014

In the last few quarters, the real estate market in Hyderabad has nor seen any remarkable surge neither in the terms of prices not in the price. But with the declaration of the twenty-ninth state, the realtors of the city of the Hyderabad jubilated in the hope of a bright prospect in the realty industry.  It is expected that this marks the end of the political turmoil and indecision and mark the onset of a new era of business growth in the city.  According to the realtors of the city, after recession was over, real estate in all the major cities of the country had survived apart from Hyderabad, owing to the political unrest.

Hyderabad has good social and civic infrastructure that can lure the investors from the different parts of the state and the country. It was observed that the price of the plots that were similar to that of the neighboring metropolis in 2007 now cost almost twenty-five to forty percent cheaper presently. According to the realtors, the prospective buyers in the Telengana region are awaiting a further dip in the prices of the property in Hyderabad. This is also expected to attract the investors from the state and also different part of the country.

The real estate investors and the builders are hopeful about the real estate industry in this region. Hyderabad boasts of the civil infrastructure of international standard and is at par with the other metropolis that as Pune, a favorite location for real estate. A major shift is expected  regarding the profile of investors in the real estate in the city as previously  a major portion of the investors were from coastal districts of the state, but with the creation of a new state there are chances of these investors to invest more in various parts of Seemandhra than Hyderabad.

However, again the realtors believe that there will be no significant change in the arena of real estate as the market in Hyderabad is more of an end-user driven in nature. In the last five to seven years, it has been noticed that almost seventy percent of the investors in the city are from different parts of the country. After division of the state, an important step taken by the government is the development of the satellite township around Hyderabad. This is also considered to be a major step to improve the image of the Brand Hyderabad.

Grand plans have been also been adapted by various departments of the newly formed state of Telengana and the local administrative bodies of Hyderabad, to transform the city to a world class one. The Greater Hyderabad Municipal Corporation, Hyderabad Metropolitan Water Supply & Sewerage Board and Hyderabad Metropolitan Development Area have drafted plans that aim at development of civic infrastructure in the coming decade. The Municipal Administration and Urban Development has held a meeting with the other authorities recently to draft a blueprint of the plan. In this meeting, the secretary of Ministry of Information Technology and Communication was also present, as the plan is also linked to the much anticipated Information Technology Investment Region.

Replacements of IT Hubs In Hyderabad Sought In Bapulapadu And Nuzvid

July 1st, 2014

The development of the new Telengana state has left the other part bereft of the IT hub of the country, the Hitec City in Hyderabad. The city will have all the benefits that the newly developed state can avail of, but the other part will have to be satisfied with the industrial towns of Vijaywada and Guntur. Therefore, the current Chief Minister for the Andhra Pradesh has decided to develop new information technology hub in the area of Bapulapadu. It is going to be constructed over a proposed land of 2000 acres in the vicinity of Gannavaram Airport. The Chief Minister expects to recapture the effect of the success of his skills at developing the project of Hitec City.

It was the current Chief Minister who was responsible for the successful implementation of the policies which made Hyderabad the Cyber City of India and got the complex renamed fondly as Cyberabad. He hopes to see even more development in this soon to be developed project also. He has directed his officials to identify the requisite 2000 acres in the proximity of the Bapulapadu town.  It is near Vijaywada, slated to be one of the two contenders for the position of the capital of the new state. The positioning is quite advantageous and it has many infrastructural benefits which have been prepared for it.

The biggest advantage the new IT hub will have is that, it will be in close proximity to the airport and, therefore, will have all the facilities which have already been place before it was developed. The airport is one of the busiest in the state and there are many residential and commercial establishments which have clearly been at work to get the advantage of the new development first hand. Once the land for the IT hub is determined the real estate values of the areas surrounding it will also rise giving the town sheen of urbane growth. When the Cyberabad was developed it had been created for IT only but as time passed, it became the culminating point of the entertainment and other commercial projects. This is the aim of the Chief Minister; what he wishes to recreate.

This is not the only development which is in the plans for the state. There are also plans to do the same in the town of Nuzvid, which is situated between the cities of Guntur and Vijaywada. There, the plans are to be on a grander scale and with the completion of this project there will be a 10000 acre IT cluster which will extend between the two cities and close to the new capital which is expected to be established soon. The state plans to get the advantages of both the cities, as well as the new capital, with this plan as it is expected to be the most lucrative position. An additional benefit with this is that with the establishment of this place, there will be large scale real estate development which will uplift the areas in myriad ways. The overall development will boost the economy of the new state in a major way.

Hyderabad Gains And Greed Turns The Tables For The New State

July 1st, 2014

The news of the division of the Andhra Pradesh state has been creating a lot of waves in the real estate market. It is because of the emerging opportunities that the creation of prospective avenues for business which has people waiting with bated breath and wondering what will be the next step that is to be taken by the people. In the essential scheme of things, there are many people who have high hopes from the creation of the new capital. Not only the developers but investors of all kind are also expecting to make a lot of profits when the land for this new city will be clearly delineated to the public. As of now the new Chief Minister has only informed that it will be the region between the two major cities of Vijayawada.

However, with the news there have been quite a bit of favorable changes in the state. The property rates have risen to an all-time high in the posh locality of Benz Circle in Vijayawada. Previously, the most expensive locality was the Banjara Hills in the outskirts of the city of Hyderabad, but Benz Circle has left it way behind in terms of the per square yard price. Vijayawada is the other side of the new city and has already begun the hike of prices, but this will adversely affect the business in the city. Many of the investors who had been eyeing Vijayawada have to close their wallets owing to the high prices being quoted. This has become a double-edged situation for the new city.

While many people are in the mood to buy themselves land in the new city they are reluctant to do so without getting the clear cut plan of the government. Even now, the cityscape has not got a proper location in the confirmed stage, which is making things much difficult for the investors. They are settling for buying plots in Vijayawada, but even that is proving costly for them. Incidentally, they have to revert to the old haunts to make money now. The markets are making money but also losing a lot of customers. Instead of a steady, stable growth, the sudden hike in the prices has been quite damaging in the immediate turn of incidents.

The expensive natures of the plots have arisen from the decision of the plot owners in the supposedly new capital who have been quoting exceptionally high prices for their properties. Many of them have somehow imagined this to increase the value for their land, going so far as to even refusing to negotiate for the prices. Instead of creating a favorable atmosphere, it merely heightened the distaste for buying land here and those developers who had been running to buy plots here have begun running double speed towards the old capital. The prices at Benz Circle are pushing 1.5 lakhs per square yard where even Hyderabad and Hitec City have Rs.80000 at the maximum. The loss of the new state has been seen as a triumph for the old city where the markets are growing even stronger and more lucrative.

IT/ITES in Hyderabad target Gachibowli as next popular Investment destination

October 23rd, 2013

According to a survey by Jones Lang LaSalle on the upcoming investment destinations, Gachibowli in Hyderabad is listed as the next popular IT/ITES destination of the city after Hitec city. Major IT campus developments can be seen in Gachibowli. The locality also witness demand from occupiers who opted for SEZ spaces. The IT developments in Gachibowli have attracted various national and local developers to develop their residential projects in this submarket. Currently residential prices are on rise in this submarket and there are new projects being proposed at locations closer to Gachibowli such as Gopanpally, Tellapur and Nallagandla. Retail in Gachibowli is currently restricted to high streets particularly on Old Mumbai Highway. There are no malls currently operational in Gachibowli. Retailers such as Reliance, Ratnadeep, Café Coffee Day, Subway, Pizza Corner etc. have opened their stores on the Old Mumbai Highway. However the Inorbit Mall at Hitec City is at a distance of 6 km from the submarket. Lanco’s Mega Mall within the Lanco Hills SEZ is launched and it is expected to complete in next three years.

 

Gachibowli is well-connected by road as the Old Mumbai Highway passes through this submarket. However, the public transport to Gachibowli is not adequate. The Rajiv Gandhi International Airport is well connected to Gachibowli by the Nehru Outer Ring Road. It also houses many educational institutions such as ISB and University of Hyderabad. It has two hotels Hyatt and Regenta One. Continental Hospital is constructing a 700-bed super-specialty hospital in Gachibowli which is expected to be the largest healthcare facility in the city when operational.

According to reports, availability of land for real estate and infrastructure developments, improved connectivity along with relatively reasonable pricing of real estate than Hitec City submarket is expected to improve the investment potential of Gachibowli in the coming years.

 

Source: The Times of India

Sri Sailem Highway offers plots for Rs 5-10 lakh

September 17th, 2013

Sri Sailem Highway in Hyderabad is witnessing rapid real estate activity with several developers launching plotted development projects along the stretch. This state highway offers plots within a budget of Rs 5-10 lakh. The location offers attractive prospects for the long term investor. According to Santosh Kumar, marketing manager, Fortune Infra Ltd, “An annual appreciation of roughly 25 per cent is expected along this highway”. According to S Ram Reddy, CMD, SMR Builders Pvt Ltd, “Due to rapid economic growth and current affordable prices, Sri Sailem Highway is expected to yield around 20 per cent returns annually.” The reason for this optimism may largely be attributed to the large scale development that is slotted for the location in the near future. Almost 10,000 acre of land has been acquired by the government for developing various projects such as a hardware Park, IT/ITeS Park, TCS IT SEZ, Pharma SEZ etc. The enhanced employment opportunities that would come when these become operational are expected to augur well for real estate along the area. According to M Nanda Kishore, executive director, Ramky Estates and Farms Ltd, “Sri Sailem Highway is also a good option for anyone looking to invest near the international airport”. At present the per sq yd values for residential plots vary between Rs 1,800-2,000, informs Kumar. “As land is easily available towards Shamshabad Airport and beyond, developers are able to offer projects at lower rates as compared to other parts of the city. As real estate development is still gaining pace, the stretch sees more demand from investors and long term end users,” states Kumar.

Some of the developers offering plotted development along the highway include Fortune Infra Pvt ltd, Prajay Engineers, Subha Gruha Projects Pvt Ltd, etc. With a healthy capital appreciation expected yearly, Sri Sailem Highway may prove to be a prudent investment decision for the future.

Source: The Times of India, Hyderabad

Land records converted to digital form in Hyderabad

September 3rd, 2013

Hyderabad city is converting land records, which is one of the severe pain areas while authenticating ownership rights, into digital form. According to C Shekar Reddy, president, CREDAI-Andhra Pradesh, “The property registration procedure would also be online. He also added, “The government wishes to put eGovernance in place – from birth to death.”

Recently, the city administration provided digital tablets, popularly called tabs, to tehsildars of 16 mandals. The devices will be used to update land records. They are equipped with customized software applications and all tehsildars are instructed to feed land-related details such as ownership and the current status of usage. A tehsildar would also take on-the-spot pictures of the properties and send them to the central server along with all other details. The server will be linked to the District Collectorate and the Chief Commissioner of Land Administration (CCLA) office. This will also help to prevent fraudulent property transactions on account of ownership. The digitized records will also provide litigation-related details. Nevertheless, digitization has numerous benefits for both the government and the consumer.

According to Hyderabad collector, Mukesh Kumar Meena, the up-to-date records will also help in gauging the level of land utilization. There are times, when land is allotted to other government departments for public purposes, but it remained unutilized for years. In order to meet technological skill-related challenges, the administration is training its personnel.

Meanwhile, apart from eGovernance initiatives in land and housing domain, the city is also a torchbearer in the field of promoting eco-friendly practices in real estate. Recently, the Greater Hyderabad Municipal Corporation declared 10 per cent concession on property tax for residents using solar water heating equipment. The benefits are not just limited to users, as the Corporation does not shy away from reducing the impact fee for developers who use eco-friendly practices in their projects.

 Source: The Times of India, Hyderabad

Vijayawada in Hyderabad witnesses an increase in Commercial Space rates.

August 14th, 2013

The city of Vijayawada which is situated around 270 km east of Hyderabad, witnessed an immediate ripple effect of Congress’ ‘Jai Telangana’ call. Owners of commercial spaces in the ‘land of victory’ were found quoting as much as Rs 50 per square feet (sft) for properties which, until a few days ago, were up for grabs at a meager Rs 15 per sft. The main reason behind it is the intense speculation about the city emerging as the largest business hub, if not capital, of the new Andhra Pradesh state.

 

As per the market insiders, the residential projects, which are currently floating around Rs 4,500-Rs 5,000 per sft, are also likely to increase in the next few weeks. The expectation, they said, was rooted in the hope that corporate houses with operations only in Hyderabad would now look at suitable destinations in AP as well to expand their network.

According to Rajling Gadde, chairman of Greater Vijayawada Builders’ Association, “Considering that Vijayawada is centrally located and can provide infrastructural support to such projects, it only makes sense for them to set shop here”. He even argued that the city, by virtue of its geographical location, was sure to edge out other contenders like Visakhapatnam, Ongole and Tirupati in the race for the capital city status.

The developers across the Andhra region are of the opinion that the Vijayawada-Guntur belt has the potential to grow as the next ‘hot’ real estate destination after Hyderabad. This, as the area is not only well-connected to other areas but also has a thick presence of educational institutions, three major power stations and expansive automobile and tobacco manufacturing units. Meanwhile, even as Vijayawada seems to be leading the race, market analysts in Hyderabad feel that the final results will be out only when divided AP formally decides on a capital city.

Source: The Times of India

Status of Hyderabad government land will be available in Tablet Phones.

August 14th, 2013

Hyderabad will be the first district in the state to use Android-based tablets to get the government land details. The Hyderabad collector Mukesh Kumar Meena has taken an initiative to provide Tabs to tehsildars working in 16 mandals in the district to update status of government land.  According to collector Meena, “The government is keen to develop a land bank in each district. Though the revenue department has information about status of government land, it is not up-to-date. We have alienated government land to various departments like education, SC, ST, BC welfare, minorities and housing for various purposes. In fact, the district administration does not have exact status of land usage. Though we have allotted the land, the departments have not utilized it for the purpose for which it has been allocated and it has been lying vacant”.  A suitable application has also been prepared by the district administration to feed land-related details like survey numbers, status of land (vacant/used), ownership (whether it is in government possession or in litigation), images of land etc.  The collector also said, “The tehsildars have to feed details of the land. They have to take images of the land position on the spot and send it along with land details (mandal wise) to the main server. The land status will be updated once in 15 days”. He also added, “The server would be linked to the collectorate and the Chief Commissioner of Land Administration (CCLA) office. Senior officers dealing with government land at both the collectorate and CCLA could get exact status of the land. To identify government land, we will use data provided by the GHMC to us. They have developed data around 53,000 survey numbers based on ‘Town Survey Land Records’ (TSLR)”. The government has already sanctioned Rs two crore to construct compound walls to the existing vacant land to check encroachments.

According to revenue authorities, several parcels of government land have been lying vacant in various mandals under protection of local tehsildars, but a few got caught in legal tangles. He also added, “To develop the land bank and know status of the government land in the district, we have decided to use Tabs. A few days ago, we have imparted training to tehsildars of the 16 mandals in using Tabs. In a day or two, we will provide them the gadgets”. According to Khairatabad tehsildar, “With the Tab, our task will be simplified,” said. Another tehsildar working in Secunderabad mandal, N B Vishnu Sagar, said: “This is a new kind of work entrusted by the district administration and it is innovative.”

Source: The Times of India

Appa Junction is becoming Real Estate destination in Hyderabad

August 14th, 2013

Appa junction in Hyderabad is attracting both the investors and end-users due to its large space availability and amenities. It is a centre of attraction for the end-users because of its flats priced at less than Rs 3,300 per sq ft and at a distance of 13-15 kms to Hitec city and Gachibowli. Upcoming infrastructure projects coupled with good connectivity through city buses and auto rickshaws is boding well for Appa Junction. The area offers tranquility and greenery to the residences here, so much so that the real estate is at a booming stage. Additionally, demand is swarming mainly due to amenities present in the area. Appa Junction houses many eminent schools, good restaurants and hospitals. Today, the real estate market in Appa Junction is abuzz with activity. It has caught the eye of builders and witnessed a steady increase in supply of condominiums. As per the MagicBricks.com data the demand is more for 2BHKs followed by 3BHKs.  The locality offers rental properties at a monthly rent of Rs 12,000-15,000 for 2BHKs and Rs 16,000-18,000 and above for 3BHKs.

According to Sony Antony, Maxxco Real Estate, “Appa Junction is one of the best localities to live in Hyderabad as the capital values of multistory apartments in the area hover around Rs 2,500-3,300 per sq ft and villas for Rs 7,000 per sq ft”.  “Also, people working in the nearby IT companies are seeking property in the locality, which is further escalating demand for rental properties,” he adds. Talking about the advantage of investing in the locality, Anand Reddy, Executive Director, PBEL Property Development, said, “One of the advantages of investing in Appa junction is that it falls between the growth corridor Gachibowli and Airport.” According to Prakasa Rao, Sanvi Infra, “Due to a natural green cover, the pollution level here is much better than many other areas in the city”.

Source: The Times of India