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

South Hyderabad offers affordable properties in the city

July 31st, 2013

South Hyderabad offers affordable properties within a budget of up to Rs.40lakh. As per the data with MagicBricks.com, amongst all other zones of Hyderabad, South has been supplying majority of the affordable properties in the city. While South recorded 67 per cent availability of properties under Rs 40 lakh-range in Apr-Jun 2013 quarter, West, Central, East and North accounted for 31, 32, 55 and 59 per cent availability, respectively.

Out of the total properties supplied in South, 41 per cent were valued up to Rs 20 lakh and another 26 per cent were valued between Rs 20-40 lakh. The locations which witnessed maximum supply of properties in the budget of up to Rs 20 lakh included areas such as Shamshabad, Hayath Nagar and Shankarapalli. Bandlaguda Jagir, LB Nagar, Shamshabad and Mehdipatnam were majorly popular for the budget range of Rs 20-40 lakh. For instance, Bandlaguda Jagir is gaining its market on account of its proximity to the ORR and LB Nagar is in demand mostly because of its future potential due to the upcoming metro. According to the data, both Bandlaguda Jagir and LB Nagar account for 15 per cent each of the total supply of low-priced properties in South Hyderabad.  However, Shamshabad emerges as a winner in supply of affordable properties. The area holds 54 per cent of the total availability of properties worth up to Rs 20 lakh and 25 per cent of properties worth between Rs 20-40 lakh in South Hyderabad.

According to Suresh Yadav of SS Realtors, “Being in the outskirts of the city, these areas have lesser land values. However, with Outer Ring Road (ORR) in place along with the upcoming metro, these areas hold a good potential for returns on investment”.

As far as availability is concerned, South Hyderabad may have lot to offer, however, the buyers have to have a horizon of at least five years until the area improves in terms of livability.

Upcoming Metro in Hyderabad will lead to hike in property values

July 29th, 2013

The upcoming Metro in Hyderabad is going to increase the property values. As per MagicBrick.com, Uppal has witnessed a rise in property values by almost 7 per cent in the Apr-Jun 2013 quarter. Miyapur, Kukatpally Housing Board (KPHB) Colony and LB Nagar are a few other localities which are witnessing rising capital values. The data states a respective rise of 4, 7 and 10 per cent in these localities in Apr-Jun 2013 quarter.

According to Rakesh Talwar, VP-Marketing & Sales, NSL Infratech, “Metro certainly has created a buzz in the market, especially in Uppal and its nearby areas. This Eastern corridor is where the Metro starts from in Hyderabad.” He also added, “The metro is spread across major parts of the city in form of three corridors. It starts from Nagole to Shilparam, from Miyapur to LB Nagar and from Jubilee Bus stand to Secunderabad to old city till Faluknama. People understand that with the coming of metro by the beginning of 2015, the city will become accessible from all directions and it would not matter where one stays and works”.

Sunil from Sree Property, says, “Uppal, Miyapur, LB Nagar and KPHB Colony have witnessed almost 15-20 per cent capital appreciation in the last one year. Multi-storey apartments in Miyapur which used to cost almost Rs 2,100-2,400 per sq ft in 2012 are now available between Rs 2,500-3,300 per sq ft.” He also added, “The advent of metro has definitely impacted the land values, but the buyers are yet to realize the actual value that will come along with the metro. Unstable political situation is still keeping a lot of buyers away from the market.”

However, irrespective of the political scenario, if trends in other cities are any indicator of the impact of metro on the realty markets, then Hyderabad real estate landscape might also be up for a transformation.

Voluntary Disclosure Scheme has poor response in Hyderabad

July 23rd, 2013

The Greater Hyderabad Municipal Corporation commissioner had announced the Voluntary Disclosure Scheme on July 1, urging property owners who have not got assessments done so far to do so before August 31. The commissioner had warned that if anybody was found to have not assessed their property after the due date, he/she would have to pay three years tax apart from interest on the arrears. However, the scheme has seen poor response, with only 93 property owners coming forward so far.

On an average, the Greater Hyderabad Municipal Corporation (GHMC) gives out 1,000 building permissions a month. But new assessments of property tax hardly reach 100 a month, meaning less than 10% of property owners are registering to pay property tax in the entire Greater Hyderabad area. The idea behind Voluntary Disclosure Scheme was to bring unassessed properties into the tax net. But this scheme has poor response in entire Hyderabad.

Officials have now started analyzing what went wrong in the system. According to a senior GHMC official, “Going by the number of building applications, the number of new assessments should be at least 1,000 per month. Apart from these permissions, there are high-rises, both commercial and residential, where the number of units is more and hence assessments should be more. But, only 10 per cent of the building applications are being assessed a month”. But another official blamed the lack of publicity of the scheme. According to him, “The GHMC announced the scheme but did not publicize it. As a result, many property owners are not aware of it”.

Sources in the GHMC said that as many as 14,885 building permissions were given in 2012-13 and another 3,500 in the past two months. Comparatively, the total permissions given were only 10,221 in 2011-12. In the LB Nagar circle, which is one of the fastest developing areas, over 1,500 property owners had obtained permission to construct buildings in the last one year, but only 88 applications were received for property tax assessment since November 2012. Similarly, over 1,000 buildings were permitted in Kukatpally circle during 2012-13, but only 126 property owners/builders chose to get their property assessed.

Though nearly 13.10 lakh properties were assessed in the city, GHMC officials suspect that at least 3 lakh more are pending due to various reasons, including collusion between corporation staff and property owners. This has made a huge dent in the revenue collection. The corporation has now begun a survey to bring unassessed properties into the tax net by using geographical information system.

Somajiguda in Hyderabad witness an increase in Rental Values

July 23rd, 2013

Somajiguda, one of the prime areas of Hyderabad is witnessing increase in rental values because of its proximity to some major business districts such as Gachibowli, Begumpet and Panjagutta.As per MagicBricks.com data the hike in the rental value has increased by almost seven per cent in the Jan-Mar 2013 quarter and by eight per cent in the Apr-Jun 2013 quarter.

Another reason indicating high demand for rental properties is the affordable rental values. These are comparatively lower in Somajiguda than in the other nearby areas such as Hi-Tech City, Banjara Hills, Jubilee Hills and Madhapur. Connectivity is also pushing the demand up. There are several Andhra Pradesh State Road Transport Corporation (APSRTC) buses plying from here to other parts of the city. Also, the up-coming metro will have a stop at a distance of merely 3-4 km at Ameerpet. With every livability factor working in favor of Somajiguda, it leaves no doubt on why an investor should not buy here.

According to Ranga Rao Nakka, Owner of Chetanya Kiran Housing, a city based real estate firm, “Because of affordable values, Somajiguda is seen as an alternate to other adjacent places which are the premium areas of Hyderabad. According to Bangla Surendra of Suha Properties, “Being close to the Central Business Districts (CBDs), Somajiguda receives a healthy demand for renting residential properties. Mostly it is the IT professionals working in Gachibowli or businessmen having their offices in Panjagutta, who look for temporary abodes in Somajiguda.”

For instance, a 2BHK in Somajiguda may be available for rent on almost Rs 7,000 per month however, for a similar sized home in Hi-Tech City or Madhapur, one may have to shell out approximately Rs 10,000 per month. With all facilities such as schools, markets, entertainment sources and hospitals being in place, buyers find it wise to rent homes in Somajiguda. The only concern now is when will the capital values raise as per the rent.