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

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.