Rs 45,000-Crore Investment Scam

PACL Head Bhangoo Arrested Over Alleged Rs 45,000-Crore Investment Scam


Central Bureau of Investigation (CBI) on Friday arrested the founder of PACL Ltd over allegations the property company cheated investors of $6.8 billion (about Rs 45,000 crore), in what local media is calling the country's biggest financial scandal.

The arrest of Nirmal Singh Bhangoo comes 17 months after market regulator Sebi (Securities and Exchange Board of India) ordered PACL to return money to millions of investors, saying the company was running an illegal investment scheme.

The scheme promised depositors returns on investments in agricultural land, the regulator said.

PACL has argued it was selling land to customers and not investment schemes, and so was not subject to Sebi regulations.

Reuters did not get any response to phone calls to PACL's head office in New Delhi on Friday.

PACL founder Mr Bhangoo and three other company officials were arrested on Friday as part of the ongoing investigation into allegations of criminal conspiracy and cheating, said R K Gaur, a spokesman for the Central Bureau of Investigation.

The case involves alleged collection of about Rs 45,000 crore ($6.8 billion) from roughly 55 million investors across the country, Mr Gaur said, terming it a "Ponzi scheme case".

Regulators have stepped up scrutiny of unregistered investment products over the past two years, plugging regulatory loopholes that had long allowed unregulated entities to raise billions of dollars from small investors. Many people ended up losing their life savings in these schemes.

Subrata Roy, founder of conglomerate Sahara India, has spent the last 21 months in jail for not complying with a court order to return $5.4 billion (around Rs 36,000 crore) to investors who put money in a 2008-11 time deposit plan that was later ruled illegal.

Sahara's business empire includes overseas hotels such as the New York Plaza and a Formula 1 racing team.

Property bubble bursts as prices crash 20% in investor-driven markets

Property bubble bursts as prices crash 20% in investor-driven markets

Property bubble bursts as prices crash 20% in investor-driven markets

Real estate prices in investor-driven markets such as UP's Noida, Navi Mumbai, Ludhiana, Chandigarh andGurgaon's Dwarka Manesar Expressway have seen more than 10 percent pricecorrection due to all-around liquidity squeeze, dearth of buyers and erosion of investor faith in the property market.

In areas like Ulwe outside Mumbai where massive housing projects are coming up or already constructed, prices have remained flat as apartments here are unsold or have been bought by investors hoping to flip it for easy profit. The same is true for highly speculative markets such as Noida and Ludhiana too where there is a dearth of genuine buyers and investors are looking to exit from projects.

Today's Economic Times notes that the first signs of a bubble bursting in this investor market are finally here as a 1,100 sq ft apartment in Noida Extension that cost around Rs 42 lakh a few months ago can today be bought for around Rs 37 lakh, while a 1,200 sq ft apartment can be had for Rs 77 lakh compared with Rs 86 lakh six months ago near Gurgaon's Dwarka Manesar Express.

Quoting property agents in Gurgaon and Delhi, the report saysbuilders today are willing to throw in 10 percent discount. With a little bit of push, they are even offering get 5-6% worth of freebies such as free furniture or ACs, free parking or top-notch flooring etc in these investor-driven markets.


Apart from investor markets, property prices have plunged across 22 major cities, including Mumbai, Delhi, Bangalore, Chennai and Pune during the April-June quarter as developers battle with low sales and high inventory.

The National Housing Bank's Residex tracks movement in prices of residential properties on a quarterly basis. According to the index, during the period between April and June 2013 not only the tier I cities, but also the tier II cities witnessed a fall in prices.

" Investor-driven markets, especially in North India, are seeing a 20 percent correction in secondary sales as there is complete panic here since these apartments are not habitable. Developed areas, on the other hand, are seeing a price correction of around 10 percent in terms of discounts and freebies,"said Pankaj Kapoor, MD at real estate research firm Liasas Foras.

As Firstpost noted earlier, residential property in Kochi declined by 3.37%, Patna-3.29%, Coimbatore 3.26%, Ahmedabad 3.13%, Faridabad 2.42%, Chennai 2.26%, Jaipur 1.79%, Delhi 1.49% and Bhopal 1.30% during the June quarter.

And if you were to look at the sales figures, the reality is even more grim.

Data from property research firm Liasas Foras shows Mumbai saw the maximum inventory of unsold homes at 155.27 million square feet or 48 months of unsold inventory during the first quarter of FY14.For NCR, the inventory has more than doubled to 31 months in the first quarter of FY14, while for Mumbai it has risen from 17 months to 40 months.

Inventory denotes the number of months required to clear the stock at the existing absorption rate.

An ideal scenario implies inventory should be in the range of eight to 10 months. But Mumbai would take four years to sell these homes despite a slew of discount schemes, new launches and back-room negotiations.

Even Cushman & Wakefield suggests that more than 30% of houses under construction in Mumbai are priced at more than Rs 1 crore.

"The quarter April-June was subuded for the real estate market and possibly one of the worst quarters in terms of sales across cities. A combination of discounts and flexible pricing is keeping up the sales in the past few months," noted Pankaj Kapoor of Liases Foras.

Clearly an artificial price rise has been created to accommodate investors at each stage of construction, which is no longer sustainable. Oversupply and overpricing have reached a point that has made it inevitable for the prices to soften.

"More than 40 percent of the buyers in Mumbai's property market are investors. Noida is even worse and akin to a ghost town. Today, all investors are are looking to cash out as more appreciation is just not possible. But their money is stuck since there are no genuine buyers at this price point and the rupee has tanked to 65 against the dollar from 43-45 when these investments were made," an industry veteran told Firstpost on condition of anonymity.

In other words, with a depreciating rupee and high inflation,the cost of money has gone up and the chances of making money in the short-term are not very bright, which is why investors are no longer ready to pump in money.

And with 2013 marking the exit of private equity, a distress sale in the real estate industry cannot be ruled out.

Expecting an endgame to speculative real estate prices, Manish Bhandari of Vallum Capital in a recent report titled 'Valuenomics" says a 'large increase in asset price is followed by a higher demand, as investors think that further increases in prices will follow. This "super-exponential" acceleration in prices due to a positive feedback (or "pro-cyclicality") leads to formation and then maturation of a bubble, which has happened in case of the Real Estate prices in India.'

He expectsa price correction of more than 40% and thereafter time correction for another four to five years as during this period banks are likely to deleverage their balance sheet, stomped by losses, while investors will shy away from further investments and genuine buyers would emerge to clear excess inventory.

"The previous deleveraging cycle in 1997-2003 saw real estate prices correct by 50 per cent in Mumbai Metro Region. Add to that the likely exit of PE players. ..Unless government deflates the housing bubble in orderly manner; the aftermath and reverberating effect of collapse by market mechanism will surprise a generations on how a nation was making its way to prosperity by speculating on a piece of land and eventually lost a fortune," adds Bhandari.

Hyderabad Beats Realty Slowdown as Housing Sales Rise 67%

Hyderabad Beats Realty Slowdown as Housing Sales Rise 67%: JLL India

Representational image


New Delhi: Housing sales in Hyderabad rose 67 per cent to 7,000 units during the period between October 2014 and September 2015 on improved demand from both end-users and investors after formation of Telangana, says a report by property consultant JLL India. 

Housing sales stood at 7,000 units during the fourth quarter of 2014 to the third quarter of 2015 as against 4,200 units in the year-ago period, JLL India said. 

"After creation of new Telangana state and Hyderabad's status as joint capital, the end-users demand as well as investors sentiment has improved, resulting in an increase in sales," JLL India national director-research Ashutosh Limaye said when asked about the rise in sales despite overall slowdown in the real estate market.

Going forward, he said, sales would remain robust with a reasonable price rise.

"As the city moved past the global financial crisis and later, the formation of Telangana, developers are no longer holding back launches and buyers are also returning to the market," the report said.

JLL said there has been a significant increase in the number of units launched. In the last three quarters alone, launches have picked up strongly, increasing by more than 1.5 times since last year.

"Moreover, improved economic activity seen during the last six months has led to a better market sentiment. Corporates are also coming in as the political environment has improved," it added.

The capital values have also witnessed a significant rise in Hyderabad of about 5-10 per cent year-on-year, after many years of seeing sub-5 per cent rate of appreciation. 

The city is likely to witness further price rise going forward, given its good quality of life and state-of-the-art infrastructure, the consultant said.

"As the government goes all out to bring investments, heightened economic activity can be expected to further bolster the residential realty market," the report said.

Ten cities to shop for budget real estate in India


Ten cities to shop for budget real estate in India

The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously.

Ten cities to shop for budget real estate in India

India’s cities draw the most housing demand for reasons like better job opportunities, living standards and infrastructure.

However, rapid urbanisation and development of these cities into mega-cities have given rise to challenges such as pollution, traffic issues, high property prices, etc.

The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakh. This vision must necessarily encompass the smaller cities near the bustling cities of India.

Though affordability is a relative term, it is pertinent to look destinations where residential properties within the budget range of Rs 30-50 lakh are available, and are classified either emerging or growing submarkets supported by good infrastructural development. These towns and cities offer a wide spectrum of investable options in real estate with relatively lower price levels, providing the incentives for future capital appreciation and healthy returns.

Here are 10 cities that offer great lower-budget real estate investment prospects over mid- to long-term

Hyderabad, Telangana After a prolonged slump due to the global recession followed by political turmoil, Hyderabad’s realty market is now once again set for an upswing. Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The IT/ITeS industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces.

Pune, Maharashtra The perfect blend of Pune’s manufacturing and services sectors makes the city a standalone economic powerhouse in all respects, with a rate of job generation that is hard to match. The city has witnessed steady appreciation over the last few years, and is ranked as one of the best markets for real estate investment. The luxury homes segment has been burgeoning on the Pune’s real estate market, with many large players entering with excellent luxurious projects. However, Pune is now witnessing a slight shift in the development trend. Many new players on Pune’s burgeoning real estate market can be seen venturing into the affordable housing segment. This is obviously the segment where the greatest demand lies. Navi Mumbai, Maharashtra Over the last few years, the real estate market in Navi Mumbai and surrounding areas have shown impressive growth, largely because of the planned approach taken towards development. Now, with Navi Mumbai receiving final nod for the International Airport, its property market and that of the surrounding areas have been showing great potential. While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs 30-50 lakh. Jaipur, Rajasthan Emerging out of its image of being a majorly tourism-led economy; Jaipur has grown beyond everyone’s expectation to become one of the top global outsourcing cities in India. The upcoming IT Parks promise a great future across all real estate asset classes. The 250-kilometer stretch between Delhi and Jaipur has become a hotbed for real estate development, with areas like Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar becoming the new catchwords for investors. Surat, Gujarat Surat, known as the diamond capital of the world, is a well-developed metropolis in Gujarat. Rated as one of the fastest growing cities of the world and also recently conferred with ‘Best Urban City of India’ award, Surat has also gained prominence and recognition for being the Cleanest City in India by INTACH. Rapidly improving infrastructure initiatives have helped modernise Surat significantly. Ghaziabad, NCR Ghaziabad is an emerging residential neighbourhood of NCR which has a very high supply of residential properties in the budget of Rs 30-50 lakh. Well connected via Metro and roads to the job markets of Delhi-NCR, the city caters largely to the mid-segment home buyers. The city has a high supply of ready-to-move-in properties offered by renowned developers. Some of the well-established residential clusters in Ghaziabad that have gain prominence in the recent time include Indirapuram, Kaushambi and Vaishali. Nagpur, Maharashtra Although a city with extreme climatic conditions, Nagpur is one of the fastest-growing cities in India. Nagpur’s main claims to fame include its MIHAN and SEZ projects. However, with the Devendra Fadnavis-led BJP government taking keen interest in turning Nagpur into the next IT hub of Maharashtra, the city is set for a major transition in its real estate profile. The already-established MIDC corridor along with the upcoming IT parks have made Nagpur one of the cities that bear close watching by real estate investors. Kochi, Kerala Kochi is a metropolis in the making where modern urban lifestyles are settling into antiquated old traditions. During the days of its realty boom, Kochi grew exponentially, with more people migrating to the city and consuming even the outlying catchments of Palarivattom, Vytilla, Kakkanad, Edappally and Kadavanthra. Development of IT/ITeS projects such as the Kochi Smart City and initiatives to channelise traffic and improve connectivity, such as the Mobility Hub at Vytilla, have fuelled significantly increased demand for real estate, which more and more developers are cashing in on. Coimbatore, Tamil Nadu Coimbatore is the major industrial centre in Tamil Nadu after Chennai — and as incentives are given to IT companies by the Tamil Nadu government, Coimbatore has gained momentum as a preferred destination for IT/ITeS. With the government in power promoting the city by enhancing infrastructure development, Coimbatore’s property market has witnessed an upward push in demand for residential units in the core areas of the city such as R S Puram, Avinashi Road and Race Course, which are considered posh areas. Nevertheless, it has no shortage of affordable housing options. Coimbatore is a market where 40 per cent of real estate investments come from investors living in cities such as Bengaluru, Cochin and Chennai. Apart from the demand from professionals engaged in IT/ITeS, Coimbatore is emerging as a retirement destination, and demand for 2 BHK homes is high from senior citizens. Demand for smaller apartments is primarily from young IT professionals, while villas and row houses see demand from NRIs, retirees and IT professionals with a preference for such properties. Ahmedabad, Gujarat Ahmedabad may be the last one in the list, but it is in no way the least. With the city being a prime example of organised and fast-paced development for the rest of the cities in India, Ahmedabad has come a long way. With huge investments pouring into the state, rapid infrastructural development in the form of bullet trains, GIFT Smart City, the entrepreneurial nature of the population and a supportive, stable government, everything is going right for Ahmedabad. The oil, gas and energy industries, petro-chemical industries and automobile manufacturing industries are some of the major factors driving perennial demand for real estate in the city. 

Call for inclusion of green agenda


Arguing for urban development without environmental degradation, a group of civil society activists called for inclusion of a green agenda in manifestos of political parties for the forthcoming GHMC elections.

Addressing media persons here on Tuesday under the aegis of Council for Green Revolution, the activists said they are reaching out to all political parties to include some or all of the environmental issues raised. These include water, transport, green spaces, waste disposal and sewerage treatment among others.

“Our plan is to take these suggestions to different parties and have them included in their manifesto. If parties do not do it, we will take up activities to pressurise the elected bodies to take up these suggestions,” environmentalist Prof. K. Puroshotham Reddy, said. The council’s 68-point agenda includes localisation of water management, regulation of ground water use, recycling waste water, waste segregation at household level and preventing aggregation, promoting environment friendly commute including cycling and protecting lakes from inflow of sewerage and encroachment.

The activists have also called for restricting the role of HMDA to planning and a social audit of accounts of public service bodies like HMWSSB. He informed that the manifesto has been taken to BJP, CPI(M), AAP and Lok Satta. They will also approach other parties including Congress and TRS, he added.

The council also demanded scrapping of a government order issued on January 5 this year which scrapped an earlier provision that mandated real estate developers set aside some space in layouts for economically weaker sections and lower-income groups.

We developed city: Naidu

hyerabad: Kicking off campaign for the TDP-BJP combine for the upcoming GHMC elections, Telugu Desam Party chief and AP CM Chandrababu Naidu on Tuesday claimed credit for the `all-round development' of Hyderabad.

Naidu, while restraining himself from openly criticizing the TRS government at a public meeting at the Nizam College Grounds here on Tuesday evening, said it was the TDP government in unified AP that turned the city into an information technology hub and an attractive destination for investments. He said he was never against the bifurcation of Andhra Pradesh, but wanted it to be done in a manner that would not hurt either of the successor states.

"Hyderabad is the strong hold of the TDP-BJP combine where we won 14 out of 24 assembly seats in the last general elections. If we work together, we can win the GHMC polls," Naidu told the large gathering of TDP and BJP workers.


Naidu's first public meeting in Hyderabad assumes po litical significance as it comes close on the heels of the increasing bonhomie between Telangana and AP after the two Telugu states fought bitterly over the issue of controlling law and order in the common capital of Hyderabad.


"As I have said earlier, Telangana and Andhra Pradesh are like two eyes for me. Both Telangana and AP have to prosper. The NDA government at the Centre, TDP government in AP , and TRS government in Telangana are ready to work hand in hand. By working to gether we can achieve development of both the states," the AP CM said.


Naidu said he would visit Hyderabad regularly to ensure safety and security of all sections of society in the city ."There has been a false propaganda that I would never visit Hyderabad. I am hereby assuring you that I will visit the city regularly. Also, you can approach me if you feel threatened or unsafe in Hyderabad any time," he added. Lokesh, addressing his first public meeting in Hyde rabad, said the TDP-BJP combine was responsible for turning Hyderabad into a `global city'. Exuding confidence over the alliance's prospects in the GHMC elections, he said chief minister K Chandrasekhar Rao promised two-bedroom houses for the poor. "Where are the houses? KCR is a leader who forgets his promises, while Chandrababu Naidu is a leader who fulfils his promises."


TDP legislator Revanth Reddy said that if the TRS wins 100 seats in the elections as claimed by IT minister K T Rama Rao, then "I will leave Telangana. I am accepting KTR's challenge that he would resign if the TRS fails to get 100 seats. I expect him to honour his words."

Union minister Bandaru Dattareya, Telangana BJP president G Kishan Reddy also addressed the gathering.

Srisailam Highway, Hyderabad: An ideal location for long-term investment


After a prolonged slump due to the global recession followed by political turmoil, Hyderabad's realty market is once again set for an upswing. Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again a favourable buyer's market. The thriving IT/ITeS industry has given impetus to consumer trends, which is evident from the growing demand for residential, commercial and retail spaces in Hyderabad.

When compared to the other metros, housing in Hyderabad is relatively affordable. Property prices here are almost 60 per cent of those of Bengaluru and Chennai. Due to political uncertainty, land prices in Hyderabad have remained stable. However, with political stability and creation of a new state of Telangana, Hyderabad can now expect large investments in its property market in the near future.

Srisailam Highway, located in the southern part of Hyderabad, is bustling with real estate activity. New projects around this road are expected to firm up further in about a year.

Srisailam Highway benefits from its close proximity to the Rajiv Gandhi International Airport. The area houses several developing regions such as Barkas, Venkatapuram and Tukkuguda. Being situated close to the TCS special economic zone (SEZ) at Adibatla, Srisailam Highway has a superb advantage. The TCS SEZ has become a prominent destination for Hyderabad's thriving software industry, has a significant impact on the real estate profile of the region and has helped boost demand for residential apartments in the region.

On the social infrastructure front, Srisailam Highway is well supplied with entertainment avenues, and the general and physical infrastructure of the region is adequate. ZAK International School of Excellence, VIP's International School, Huda High School, Al-Qurmoshi Institute of Business Management and Pragati School of Nursing are a few renowned educational institutions dotting this highway. The presence of healthcare facilities such as Life Line Hospital, Al Madina General Hospital and Composite Hospital also add to the value of this well-defined residential catchment.

With a number of SEZs planned along Srisailam Highway, the locality is developing at a very fast pace. Already, many developers have launched a wide spectrum of quality projects catering primarily to the middle-income segment. The area is witnessing a strong real estate activity, and there is appreciable demand in store in the years to come.

Srisailam Highway is a perfect destination for long-term investment, and is perfect for those who are looking to invest in plot or built-up property at relatively affordable price points.

Gachibowli, Kukatpally witnessing more home buyers



Gachibowli and Kukatpally offer certain distinct advantages, making these suburbs hot favourites of residential property seekers.

Uday Kumar resides in Hyderabad and is now looking for an apartment in Gachibowli. He says on a real estate portal forum, "I searched through a lot of properties and finally booked a flat in Gachibowli. The property is located at a place which provides easy connectivity to other areas of Hyderabad. The modern amenities provided here are quite attractive."

Gachibowli is one destination in the city that is located on the developed suburbs of Rangareddy district. It lies in the North-West of Hyderabad and is a software hub due to the presence of large IT giants. It is only 5-km from Hitec City, one of the major IT hubs in Hyderabad.

Sathya Bhagat, a theatre artist says, "Earlier we were staying in Attapur. We bought an apartment in Gachibowli in 2012. After purchasing, the commuting to my workplace (near Hitec City) actually became much easier. Many apartments are coming up in the vicinity with decent amenities."

The most available property type in this locality is multi-storey apartments with an availability of over 60 percent. There is demand for villas and residential plots as well. According to the latest figures available with a real estate portal's research, the residential inventory for both the property types is limited to 15 and 12 percent, respectively.

Why people choose to buy multi-storey apartments?

Established social infrastructure could be the attraction factor for buyers to purchase apartments in Gachibowli. Within a 3-km radius, a property buyer can easily find shopping malls, schools, hospitals, grocery stores, restaurants and many ATMs. There is demand for builder floor apartments as well in the locality but property buyers prefer multi-storey apartments due to space and luxurious facilities.

Many such apartments have coffee lounge, club house, bar lounge, dance studio and swimming pool. In fact, the interior finishing is excellent and materials used to build such structures are of a fine quality. The building materials usually are of matt finish, ceramic tiles, vitrified tiles, imported marble flooring, water proof paints and other modern techniques that produce fine fittings and finishings. Due to such facilities, people have started preferring multi-storey apartments that make living a modern and classy experience.

The road infrastructure in Gachibowli is also well-developed and has Gachibowli Flyover that was built a few years back. It is near the Outer Ring Road (ORR). The area has easy access to transport as the Telangana State Road Transport Corporation (TSRTC) buses ply on the road.

The area has Multi-Modal Transport System station (MMTS) in Hitech city just 7-km away. Bus stations like the Mahatma Gandhi Bus Station (MGBS) are 20 km away, Jubilee Bus Station in Secunderabad is just 24 km away and the Secunderabad Railway Station is at a distance of 25 km. In fact, the Rajiv Gandhi International Airport (RGIA) is also 32 km away from Gachibowli, which makes the area convenient for commuting.

Popular configurations

The availability for 3BHK units in the area is high (60%). The average price for such apartments is between 40 lakh to 1 crore and above. This is because the high income IT professionals are purchasing property in this locality. "People working in Hitec City want to reside in nearby localities and Gachibowli is nearest to the IT centre. It is convenient and close to both Madhapur and Nanakramguda IT parks," says Praveen Kumar, who owns a property in this locality.

In addition, the availability of 2 and 4BHK units is 27 and 13 percent, respectively. "Gachibowli has a high supply of under-construction projects. The locality majorly offers apartments followed by villas," Kumar adds.

Moreover, in the builder floor category, 54 percent are 2BHK units, 33 percent share is for 3BHK units and 13 percent is for 4BHK units.

Below is the price structure for multi-storey apartments available in Gachibowli:

The saleable area in Gachibowli for 3BHK units is within 1,750-1,999 sq ft, which comprises 24 percent of the total share. The saleable area is considered the super-built up area inclusive of carpet area and common spaces such as staircases and lifts.

For 2BHK units, the highest saleable area is 1,150-1,349 sq ft. Nearly 50 percent properties are available within this size followed by size ranges 950-1,149 sq ft and 1,350-1,549 sq ft that comprises 30 and 20 percent, respectively.

What Kukatpally has to offer?

When compared to Gachibowli, Kukatpally is preferred by many IT professionals as it comes cheaper monetarily. The public transport is good as mentioned by Anand Nath, who owns an apartment in the area. He says, "Kukatpally is a prime location. It is centrally and strategically located in Hyderabad West region. It has good schools, hospitals, restaurants and neighbourhood in this region."

In Kukatpally, both builder floors and multi-storey apartments can be found in abundance. Today, a real estate portal research says that the locality witnesses healthy demand for both buying and renting accommodation. About 68 percent share of residential inventory belongs to the multi-storey apartments and 2BHK units (comprising 67%) have the biggest supply share.

Also, there is rain water harvesting facility in many multi-storey apartments. Besides this, these apartments have a gas pipeline, water storage and swimming pool facility including others. People prefer afford able housing and as of now, Kukatpally is one such area offering this type of housing. The average price range for multi-storey apartments is within 20 to 80 lakh and above.

However, the average price range for builder floor apartments is between 20 lakh -1 crore.

Following is the share of builder floors and multi-storey apartments in Kukatpally:

Why Kukatpally?

Kukatpally's social infrastructure has grown immensely over the years. As Hitec city is nearby, people prefer this location for residence. The ORR is just 25 km away and Hitec city is at a distance of 8-km only. Easy access to the Telangana State Road Transport Corporation (TSRTC) helps the area to be well-connected to other parts of Hyderabad.

The airport (Rajiv Gandhi International Airport) is 42 km away from Kukatpally. In fact, railway stations such as Secunderabad Railway Station are at a distance of 15 km, Jubilee Bus Station is 13 km away and the MMTS railway station is at a distance of 5 km. In fact, the Mahatma Gandhi Bus Station is at a distance of 20 km.

Due to such facilities, the working class prefers staying in this locality as it ultimately suits the pocket.

Popular configurations

In the given chart, it is observed that the availability of 2BHK units in builder floor apartments is the highest. It consists of 81 percent share. These types of houses have reserved parking and an individual can always customise the property according to their needs and tastes.

According to the chart, the availability of 2BHK units in multi-storey apartments comprises 67 percent share. Moreover, for 2BHK units, the most available saleable area is within 1,150-1,249 sq ft in the locality. It comprises 30 percent share. Besides this, the others are 1,050-1,149 sq ft and 950-1,049 sq ft that have 29 percent and 21 percent share, respectively.

The saleable area of 3BHK units is within 1,500-1,599 sq ft which comprises 28 percent share of the total sale. It is followed by 1,300-1,399 sq ft with 17 percent share and 1,400-1,499 sq ft with 16 percent share.

Buyers seem interested in purchasing properties in both Gachibowli and Kukatpally. The supply of properties is high in these localities. We hope that the market picks up faster and buyers show further interest in buying properties this New Year in Gachibowli and Kukatpally areas.

Top reasons to invest in Hyderabad's Kondapur


Kondapur offers a bouquet of advantages such as proximity to the IT ITeS hub of the city along with a well-developed social infrastructure.

Kondapur is one of the most sought after suburbs in Hyderabad, especially by those who are employed in the IT ITeS sector, given the area's proximity to Gachibowli and HiTech city, which is barely 5 km away. The area has many housing units of various formats along with residential projects that are under-construction. Unlike other areas in the vicinity that are close to Gachibowli and Madhapur, Kondapur offers open plots as well. Due to the residential development in the area, commercial real estate is also fairly vibrant here.

Apartments and villas in gated communities are the major housing options available in Kondapur. Most of the apartments are either in 2-BHK or 3BHK format. A 2-BHK apartment will measure close to 1,120 sq ft while a 3BHK apartment, around 1500 sq ft. The prices of a newly built apartment in a gated community range between 3,500 per sq ft to 4,000 per sq ft. Villas here are built on a plot generally measuring 250 sq yard and will cost 6,000 per sq ft. HUDA approved open plots will cost anywhere between 40,000 to 50,000 per sq yard. Rentals for a 2-BHK are in the range of 12,000 to 15,000 per month. A 3-BHK will have a monthly rental tag of anything between 16,000 to Rs 20,000. Villas are rented out for 40,000-50,000.

Kondapur is well connected to other parts of the city. There is a TSRTC bus stop and also many autos and shared autos ply on the roads here. The nearest MMTS railway station is in Hafeezpet which is 4 km away from Kondapur main road. Rajiv Gandhi International Airport in Shamshabad is 33 km away. Jubilee Bus Station is at a distance of 19 km while Secunderabad Railway Station is 21 km away.

Kondapur main road can be called the area's major commercial zone with many large super markets and various stores. Residents here mainly shop from Kondapur main road and for entertainment and larger shopping needs the nearest mall is the Inorbit mall in Madhapur. For day to day requirements there are grocery and daily needs stores in the colonies and by lanes of the area itself. The other elements of social infrastructure in Kondapur are also well established. There is a strong presence of many international schools along with hospitals that are counted among the best in the city. Kondapur is also home to many big and small restaurants that serve various cuisines.

Two aspects that need immediate attention in Kondapur are development of roads in some of the lanes and water connectivity. While some parts of Kondapur get Manjeera water, there are colonies which do not have municipal water supply. Residents in such areas rely on bore-wells and water tankers. When it comes to roads, residents are confident that with the passage of sometime it will soon be developed however sufficient water supply is a more urgent need.

Telangana simplifies real estate norms

In an effort to simplify procedures for the real estate sector, the Telangana Government has taken a series of measures, including relaxing certain building norms and facilitating online clearances.

Aimed at facilitating ease of doing business and unlocking the potential in real estate sector in Telangana, the State Cabinet chaired by Chief Minister K Chandrasekhar Rao, sought to remove bottlenecks in the existing building rules while extending some concessions.

A Fast Track On-line Approval System has been put in place in the State to eliminate delays and hassles. Soon it would be implemented.

In the case of layouts with open plots, providing EWS (Economically Weaker Sections) and LIG (Low Income Group) is made optional. The representation of real estate sector agencies to charge shelter fee from the housing projects in lands having an area of more than two hectares/ five acres has been approved.

The city level infrastructure impact fee has been reduced to encourage high-rise buildings and only two slabs have been fixed as against presently existing four slabs. One slab is up to 17 floors and second slab for above 17 floors. Rates range from Rs. 500 per square meter to Rs. 1500 per in GHMC (Greater Hyderabad Municipal Corporation Area) area and Rs. 175 per to Rs. 500 per in Hyderabad Municipal Development Authority (HMDA).

This incentive it is expected to boost revenue of urban local bodies and urban development authorities. The collection of value addition charges of Rs. 100 per square meter in the CDA (Cyberabad Development Area) has been withdrawn to avoid double taxation.

Occupancy Certificate (OC) should be given in 15 days and for every one day of delay a penalty of Rs. 500 shall be levied on the concerned staff for delay.

In gated communities gifting of roads/driveways is dispensed with. Uniform buffer strip of 50 meters along the boundary of Musi River in both GHMC and HMDA areas is mandatory.