Hyderabad realty set for revival; Brigade, Mantri launched projects recently

HYDERABAD: The Hyderabad real estate market, which has been in limbo for years mainly due to the Telangana statehood agitation, is beginning to see green shoots, thanks to renewed interest from realty players outside the city who find land here cheaper.

While Bengaluru-based realty players such as Brigade, Mantri, Embassy and Prestige are among those who either launched their projects recently or are firming up land deals, many other non-local realtors are in the process of doing so, says property consultants.

"The entry of outstation players into the Hyderabad real estate market, both for residential and commercial projects, is an indication of the improving market scenario here," said Sandip Patnaik, Hyderabad managing director of property consultant Jones Lang LaSalle (JLL). Barring one or two non-local players, no new player entered the Hyderabad market owing to the sluggishness in 2009-14, he said.

A majority of the non-local property developers prefers to enter into joint development pacts with the land owners, while only a fourth goes for land purchases. Prestige, Mantri, Brigade and DLF are among the key players who entered the Hyderabad market through joint development agreements.

Apple now plans tech centre in Hyderabad

After applying for a single-brand retail licence in India, Apple is now looking at setting up its first large technology development centre and backoffice operations in Hyderabad.
Apple is in talks with real estate firm Tishman Speyer for long-term lease of around 2.5 lakh sq ft of office space in the city's outskirts, which could accommodate around 2,500 employees, sources with knowledge of the matter said.

"Apple has evinced interest to lease the space at Tishman Speyer's WaveRock facility for a period of ten years to begin with, involving a total expenditure of around Rs 150 crore," said a property consultant privy to the development. "Apple may at a later date consider asking the Telangana government to allot space for it to build own campus," the consultant added.

AP govt mulls new land acquisition Act

The Andhra Pradesh government has proposed to enact a new legislation on land acquisition arming it with powers to take advance possession of land from private parties pending completion of legal formalities. The task of preparing the proposed legislation has been entrusted to Nalsar to avoid legal shortcomings. The proposed legislation will dilute the tough provisions and lengthy procedures enshrined in the Land Acquisition Act 2013 enacted by the Union government.

The AP government has decided to come up with its own Land Acquisition Act taking shelter under Section 107 of the Central Act that empowers states to make their own legislation as the subject of land falls under the Concurrent List.

Officials, however, point out that the AP government will ensure that the broad framework of the central Act is not affected. Officials said the new Act will be a 'win-win' situation for land owners as well as the state government. Under the new legislation, the AP government wants to concentrate on four major provisions to ensure that acquisition of land becomes easier.

First, the central legislation makes a provision of six months to complete the social impact assessment study before acquiring land. The state proposes to reduce the time period for speedy acquisition. Secondly, though there is no provision for advance possession of land in the central Act, the state wants to incorporate it so that it can acquire land even before the completion of the mandatory legal process.

Thirdly, it will introduce the ‘urgency clause’ under which the state government can acquire land for infrastructure projects too. Under the central Act, land can be acquired without following the mandated procedure only for defence projects and those taken up during natural calamities. Fourthly, the government can acquire land through ‘consent award’. Once the land owner gives the consent, he cannot challenge the acquisition in a court of law. The proposed legislation will enable the government to take possession of the land while the process is still on.

Rajasthan and Tamil Nadu governments have unsuccessfully attempted to formulate their own land acquisition laws.

Realty demand to touch 1.35 b sq ft by 2020

Realty demand to touch 1.35 b sq ft by 2020

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Demand for organised real estate in India will reach around 1.35 billion sq ft by 2020, up from around 880 million sq ft currently, and 85% of this will be for residential real estate, according to a report by consulting firm Bain & Company.

The report--Residential Real Estate in India: A new paradigm for success--finds that while home sales have slowed in recent years because of low consumer demand at current prices, leading to inventory overhang in major cities, upfront and discreet discounts by builders have increased, indicating some improvement in the condition of the sector.

However, going forward, businesses in the real estate sector will have to do things very differently to be successful.

"The business model of real estate itself has seen a change and will continue to change more rapidly over the next few years. Traditionally, all the value that was attributable to a real estate firm was in land acquisition, agglomeration and managing approvals," said Parijat Jain, principal infrastructure and real estate practice at Bain and co-author of the report. "Now people are building concrete businesses, sustainable and value creating businesses around very good execution skills and very good process managed real estate," he said.

The industry is seeing a shift in dynamics with competitive forces giving rise to distinct business models, the market and regulatory environment becoming more complex, a shift in profit pools and increasing awareness among consumers and customer activism. And with high levels of inventory, selling properties has become increasingly challenging.

While there are challenges in selling older inventory, a lot of the newer inventory is coming into the market but those projects are doing reasonably well.

"It is a combination--there is a part of the sector that is doing extremely badly and there are pockets which are actually doing well," said Gopal Sarma, head of Bain India's real estate and infrastructure practice and the lead author of the report. "There has never been value attached to discipline, to process and to the customer."

Sarma said to be successful in the current market, builders should keep three key aspects in mind. Firstly, they should decide on the markets they want to play in, both geographically as well as market segment wise. "Ultimately real estate is a business of local scale. It is not a business of national or regional scale. When a customer wants to buy, you need to be able to give options in that market," he said.

Secondly, the builder needs to choose his business model and then get the right processes in place to deliver on that choice.

"Well-defined processes running throughout the value chain, from pre-construction through the construction cycle, handover and beyond, can create alignment and increase companies' ROI ( returns on investment)," said the report. The third important aspect Sarma wants builders to keep in mind is the customer. "Currently, for most businesses, the customer is not front and centre. We believe developers need to start thinking about customer as being at the centre of the business," he said.

Ravi Teja Sharma, Economic Times, Kolkata

The Rise and Rise of Andheri East

The Rise and Rise of Andheri East

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Andheri East is today a residential destination of choice for those who wish to experience the highs of living in the maximum city of Mumbai, and prefer to do so in a balanced yet vibrant environment.  The area has evolved considerably over the years, from being considered as a relatively poor cousin of Andheri West and a predominantly industrial location, to emerging as a landmark real estate destination that is home to both residential and business hubs. 

On the social infrastructure front, Andheri East has several well-known schools like St. Xavier's High School, St. Dominic Savio High School, Holy Family School and Canossa High School.  Some of the colleges in the area are Tolani College of Commerce, Shri Chinai College of Commerce & Economics and Rajasthani Sewa Sangh College of Arts & Commerce.  The area also houses reputed healthcare institutions like Seven Hills Hospital and Holy Spirit Hospital.  For those who value their entertainment quotient, Andheri East has several movie theatres; furthermore, restaurants in the area offer a multitude of cuisines for food connoisseurs.

The area enjoys proximity with prime commercial hubs like MIDC SEEPZ, Sahar Road and Andheri Kurla Road, home to the offices of several leading Indian and multinational companies.  Bordered by highways like Jogeshwari Vikhroli Link Road (JVLR) and NH8, it scores on account of its easy access to Mumbai’s domestic and international airports, as also the presence of Andheri Station.  Also, most of the area is logistically well connected to the arterial Western Express Highway (WEH), thereby providing easy and fast access to commercial hubs in Mumbai like Bandra Kurla Complex (BKC), Lower Parel and the Eastern suburbs of Powai, Vikhroli and Mulund.  The Mumbai Metro passes through Andheri East and its presence has exponentially increased the locality’s connectivity score; both residential and commercial rental rates have witnessed growth since the Metro became operational last year.  Nevertheless, Andheri East continues to remain relatively affordable for aspiring home buyers in Mumbai.

Residential options in Andheri were earlier limited, but the situation is now much improved.  Andheri East today offers residences in varied ticket sizes and categories, ranging from 1BHK apartments to premium and luxury homes.  2016 has witnessed the entry of the reputed Mahindra Group into the area, with the announcement of their latest residential project Vivante, located minutes away from Western Express Highway and the Metro.  One can consider this as a validation of sorts of the area’s potential.  (Mahindra Lifespaces is the real estate arm of the Mahindra Group, which has residential projects across the country; in Mumbai, Mahindra has completed projects in Goregaon, Bhandup and Kanjurmarg).   As hoardings across Mumbai announce the arrival of the concept of ‘Week-long Weekends’ at Andheri East (Mahindra’s tagline for its latest project), we are reminded of how location and connectivity can make all the difference to the quality of life when it comes to investing in a home in Mumbai.  

Lately, Andheri East has been in the news for the proposed Dahisar East-Andheri East Metro rail corridor, which is expected to further ensure fast track connectivity to Borivali and Kandivali (East) via Goregaon.  The Andheri Metro station has been planned to serve as a central hub in Mumbai’s Metro network, when it is completed.  When that happens, Andheri East’s status as one of Mumbai’s hottest property markets will be further reinforced.  The area is therefore well worth the investment today, for exponential returns tomorrow.

 

CIDCO to aid smart cities project in AP

CIDCO to aid smart cities project in AP

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Hyderabad

Andhra Pradesh will take the help of City Industrial Development Corporation of Maharashtra (CIDCO) in developing smart cities across the state. The state government is planning to develop one smart city each from district.

These smart cities will be built, in addition to the smart cities funded by the central government. AP will take up smart cities development on its own in Public Private Partnership (PPP) mode, sources said. P Narayana, municipal administration and urban development (MA&UD) minister who is on a visit of Maharashtra state, currently interacted with local officials on strategies for developing the smart cities.

CIDCO has previously aided in developing Navi Mumbai in 346 sqm. “It is very important to create basic amenities and infrastructure for smart cities, with the financial crunch in the state we need the experience like CIDCO,“ said the minister.

The AP team also interacted with officials from Essel group for strategies to develop smart cities.

Source: The Times of India, Hyderabad

Google buys former Essex Property Trust HQ in Palo Alto

Google buys former Essex Property Trust HQ in Palo Alto

The yellow outline shows the property Google bought last week from Essex Property Trust. The blue outlines show parcels acquired by Google in the area since 2013.

Google Inc. has picked up another property in Palo Alto's East Meadow Circle neighborhood, a reminder that the Mountain View search giant retains a large and growing presence in the city.

Google last week paid about $18 million for 935 and 925 East Meadow Circle, property records show. The seller was publicly traded apartment owner and developer Essex Property Trust, which had used the buildings as its headquarters until its recent move to San Mateo.

The buildings are at the entrance to a pocket of light-industrial buildings where Google has bought up about 10 buildings beginning in the summer of 2013. Google hasn't said what it's planning to do with the property, which is located just south of Highway 101, and Google's stronghold in the North Bayshore.

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Google has been expanding out from its headquarters in the North Bayshore, buying up most of the buildings and land in the roughly 500-acre district, which lies mostly in Mountain View but includes some land in Palo Alto. While the East Meadow area could be a future redevelopment play, Google has been quiet about its plans there, and has yet to submit any kind of development concept to the city. A Google spokesman declined to comment on the Essex deal beyond confirming it took place last week.

Whatever Google's plans, the latest pickup gives the company two key parcels at the entrance to the East Meadow district: 935 East Meadow includes a 14,748-square-foot office building on 1.1 acres; 925 East Meadow has a 17,400-square-foot building on 1 acre.

The area is part of Palo Alto's East Meadow Concept Plan, which is designed to "encourage new development that will retain and attract high-end R&D and related office use" in a way that is compatible with neighboring residential areas.

Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal.

Realty sales, PE investments to improve in 2016

Realty sales, PE investments to improve in 2016 

The real estate sector is likely to see improvement in sales and equity deals in 2016 as the economy shows signs of revival on the back of various policy decisions taken by the government, a report said.

The real estate sector is likely to see improvement in sales and equity deals in 2016 as the economy shows signs of revival on the back of various policy decisions taken by the government, a report said. 

According to a survey jointly conducted by JLL and RICS, nearly 66.7 per cent of respondents foresee improvement in sales over the next 12 months. 

"The markets have witnessed significant stress with sales under pressure due to increasing prices, longer delivery timelines for .. 

 

Property prices soften by 1% in Delhi

 

Property prices fell by an average one per cent in the Delhi-NCR during October-December period compared with the previous quarter on higher supply, according to a report.

Property prices soften by 1 per cent in Delhi-NCR: Report

The average capital values in Noida, Greater Noida and Delhi dipped minimally by a per cent each. Gurgaon's housing market emerged as the worst-hit zone with a drop of 2 per cent in property prices in the last quarter of 2015 over the preceding one, as per the property portal 99acres.com.

While the demand-supply mismatch has long been impacting Delhi NCR's real estate sector, factors such as delay in completion of infra projects further worsened the situation.

The portal said that popular realty hubs such as Gurgaon and Noida continued suffering on account of unsold inventory, but Greater Noida stayed strong on availability of affordable homes and proximity to office space.

Commenting on the report, Narasimha Jayakumar, Chief Business Officer, 99acres.com, said, "Although Delhi NCR has a grim real estate story to narrate at present, the lethargy will be dispelled as soon as the market bottoms out."

The developers have already begun purchasing land parcels to build their inventory and are entering into JVs to improve liquidity, awaiting the opportune moment to launch projects when homebuyers re-enter the market, he added.

On outlook, the portal said that the Cabinet s approval of 20 amendments in the Real Estate (Regulation and Development) Bill may boost project deliveries and promote organised growth of the sector.

Hyderabad News.Retail Real Estate in Hyderabad booms, on the back of roaring food business! And BeHungry will feed you while you save!

Hyderabad News.Retail Real Estate in Hyderabad booms, on the back of roaring food business! And BeHungry will feed you while you save! 

The IT job boom in Hyderabad has seen launching of hundreds of new restaurants. Food is definitely the most happening business, now in Hyderabad! In Hitec City alone, there are an estimated 800 food joints serving a variety of cuisine. This is apart from a number of food trucks plying their ware primarily at night. 

Most restaurants are busy even till midnight with customers hopping from one place to another! Food delivery companies like Swiggy and Food Panda count Hyderabad as their fastest growing market.

The retail real estate n Hitec City, Gachibowli, Lingampally, Jubilee Hills, Banjara Hills, Kukatpalli, Miyapur, Somajiguda etc have boomed primarily due to increased footfalls due to presence of restaurants in every nook and corner. 

Meanwhile a startup based out of Hyderabad has managed to take on-board more than 1000 restaurants in a short time and launch their food delivery and restaurant deal app "BeHungry" 

According to the founders Mohit & Hersh (formerly of Reliance Group) within a week of the launch, they have hit 100 orders per day. This is apart from customers booking buffet and dine-in deals According to them, the Combo Meals (Which is combination of curry with the main food at affordable price) is already a hit with users. 

"We are focused to bring savings whether users order online or choose to dine out. We have lined up Home Delivery Offers with as much as 35% discount, if they wish to get food delivered! Or users could get discount coupons at BeHungry before walking into any restaurant & order any food and take as much as 55% off the restaurant menu!" they said. 

We tested out the online ordering system at the website www.behungry.in. It works smoothly and you have online payment or cash on delivery options. 

The BeHungry App was found to be vey well designed, extremely light and smooth. The App will gather your location and list nearby restaurants or you can select a location. You can filter restaurants based on scores of attributes and find the right choice to place the order. 

If you are in Hyderabad, BeHungry should be on your favorite Apps list! They would also be available in other cities soon.