Hyderabad real estate mart to pick up in 2015


Hyderabad: The Hyderabad real estate finally appears to be coming out of tunnel, with the wait-and-watch approach, adopted by buyers following the division of Andhra Pradesh, being gradually replaced by optimism.

“The wait and watch period is in its last phase, buyers anticipation of price reduction is fading away leading to a more positive approach towards decision making. Developers are gearing up to launch new projects in 2015. With the end of political turbulence the Hyderabad residential market is likely to revive by end of 2015,” said Vasudevan Iyer, director, Hyderabad, Knight Frank India, after releasing India Real Estate Outlook.

The major demand driver in the city for the time-being will be commercial segment, which looks more promising than residential.

“The year 2015 looks brighter from the demand side as the vacancy in the city has fallen to 17 per cent and rents have already started rising,” he said, adding some mega office deals on the cards.

Residential market, which though does not appear to be booming, is expected to benefit as more and more new companies establish their presence in Hyderabad.

Mr C. Shekhar Reddy, the national president of housing sector body Credai, claims: “There is a definite pick-up in the Hyderabad real estate market, if not boom. With the economy expected to pick up pace, the housing market also will see a good growth.”

Real estate in TS still sluggish


As Telangana reached its one-year milestone, the real estate sector in Hyderabad appears to have given up hopes of a quick recovery of fortunes and instead remains content with slow and incremental growth.

Real estate activity, which relished the boom period of 2005 to 2008 with large scale construction work in and around the city, was left with a bitter taste during the global recession followed by the agitation for a separate State. Construction activity almost came to a grinding halt and builders were left with unsold inventories piling up in large numbers.

The coming of Telangana last year was seen by most in the building community as ushering in a new dawn for the construction industry and hopes were pinned on a quick revival being just a matter of months. Most predicted real estate activity to start flourishing by December 2014. However, that was not to be so.

But then, the builders do not really seem perturbed at their calculations having gone awry and express satisfaction at the slow growth that has been registered in the last one year. “Agreed that business for us is not in the fast mode but at least we are slowly moving out of standstill status,” says P. Dasarath Reddy, president, Telangana Real Estate Developers Association (TREDA).

According to city builders and developers, there has been a steady, albeit incremental growth in enquiries and footfall at project sites, particularly in the last six months. “If not euphoric, the mood is definitely optimistic. Unlike earlier years, enquiries are converting into sales but the conversion rate has to go up,” observes Anand Reddy, co-founder, PBEL-INCOR.

C. Sekhar Reddy, national president of Confederation of Real Estate Developers Association of India (CREDAI), says, “There is a positive movement in sales and a rise in enquiries. A small push along the line will bring real estate back into the reckoning.” The Greater Hyderabad Municipal Corporation (GHMC) according sanction for 1,100 building plans in March shows that construction activity is returning to tracks, he says.

The State government’s steps aimed at improving conditions of Hyderabad are cited as factors that will help real estate surge ahead in the coming months. “The government has narrowed down its focus on key issues of power, water and roads and this is going to push the city back in the centre-stage,” remarks Mr. Anand Reddy. Recent announcements on Google, Amazon and few others on setting up and expanding base in the city also added to the buzz, says Mr. Sekhar Reddy.

Property prices remain low

Despite a very marginal rise in the last one year, property prices in and around the city continue to remain very less compared to most other metro cities. Apart from all other attractions, a builder points out, the icing on the cake here happens to be the low pricing.

C. Sekhar Reddy, CREDAI president, puts the average property pricing in the city as ranging between Rs.3,500 and Rs.4,000 per sq ft. “In locations such as Kompally, Alwal and Bollaram, good residential properties are available at Rs.2,000 per sq ft too,” he says.

The preferred locations for property seekers continue to be Madhapur, Gachibowli, Tellapur and Miyapur. Limited stocks at Banjara Hills and Jubilee Hills command a pricing of Rs.8,000 to Rs.9,000 per sq ft while Madhapur and Gachibowli properties are ticketed between Rs.4,000 and Rs.5,000 and along locations such as Miyapur, which are picking up fast with the Metro Rail project, the price tags vary between Rs.3,500 and Rs.4,000 per sq ft. “Prices vary based on location, amenities provided and the present status of construction,” says a builder.

Interestingly, plots which went out of favour when compared to constructed property few years back, appear to be staging a comeback. Outlining the emerging trend, a realtor says property seekers were evincing interest in HMDA-approved plots at places beyond the outskirts such as Mancherial, Adhibatla and Narsingi.

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.

India real estate: Is the worst behind us?

Year 2015 was quite an eventful one for all of us.

India and the Indian government, both were in news globally and of course within the domestic boundaries for various reasons -the primary one being the continued quest for 'achhe din'.

The Indian economy currently stands on a stronger foothold with the growth trajectory moving at the pre 2008-09 pace. I am positive that the GDP growth will be between 7-7.5 percent in 2016. It is encouraging to see the fiscal deficit has tapered from 4.79 percent in 2010-11 to near 3.9 percent in 2015 and indeed there is a stronger push to fiscal consolidation by the government. Inflation has been tamed considerably and the RBI has displayed a softer monetary stance with the reduction of interest rates by a total of 125 bps across 2015.

Among refreshing developments, REIT came into spotlight once more when the government brought in amendments on MAT. Once launched, REIT is expected to bring big-ticket foreign investments to the country with the Indian REIT market growing to $15 billion in three years. There has been an adequate focus on the infrastructure development as well with an allocation of $7 billion over the next five years towards Smart Cities. This has propelled several Tier 1 and Tier 2 cities to be a part of the Smart City club in order to meet the burgeoning needs of urbanisation. Plans have also been cleared for commissioning the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) project that will focus on urban renewal of 500 cities and towns.

Housing for all by 2022 announced by the National Mission for Urban Housing will be instrumental to provide affordable housing in urban areas through supply side interventions such as extra FSI TDR and relaxation of the density norms. Further, the Government's attempt to ease FDI in the real estate sector has been a welcome move, as it could prove to be a major source of capital infusion for the developers in the coming days. At the back of these developments, real estate did have its share of mixed sentiments.

With the festive season not bringing in the expected cheer, stakeholders resisted the temptation to launch new projects in the season, while the focus remained on reducing the inventory that has piled up over the past few quarters. This year, the Indian residential sector reached an all-time low since 2010. The slowdown was witnessed not just in the premium segment but across all types of residential apartments. Moreover, the homebuyer interest did not pick up due to stalled projects, unaffordable prices, high mortgage rates and poor credibility of the developers in project delivery.

Significantly, the office space market has witnessed a remarkable recovery in the last two years and the vacancy levels are expected to touch a new low at 16 percent. Rentals are firming up and there is a shortage of prime office space. In the last three years, technology-backed e-commerce companies, including start ups, have attracted the maximum amount of interest from investors, both global as well as Indian. This created a positive impact on the office space demand and a testimony to this fact is the large deals being inked by corporates across Mumbai, NCR and Bengaluru in the recent times.

2016 will also be significant year for the Indian real estate sector if the much needed Real Estate Regulation bill becomes a reality.

Prepaid power meters in govt offices soon


Hyderabad:  To avoid mounting power dues from various government departments, the Telangana government has decided to install prepaid electricity meters in all the departments from new financial year beginning from April 1. All the departments have been informed that the TS Southern Power Discom Ltd (TSSPDL) and TSNPDCL will install prepaid meters in all offices. 

The cost of the meters will be borne by the departments in three instalments. The Discoms will work out mechanism for enabling recharge of the meters including online payment. This will also help to bring in internal mechanism by all government departments towards energy usage discipline and conservation.

The officials of the Energy department said that the TSSPDCL was facing revenue deficit of nearly Rs 6,000 crore while in case of NPDCL it was Rs 7,000 crore on account of increased cost of power purchase, mounting establishment charges and the supply of subsidised power to the agriculture and domestic sectors.  

Once power supply to the government offices is streamlined, the utilities will get relief from the evasion of tariff payments, officials said. The power utilities have also set March 31as deadline for all the government departments including local bodies to clear power dues pending to the tune of Rs 1,923 crore. Of this Rs 1,450 crore has to come from local bodies and panchayats.

All departments are directed to clear the outstanding CC (Current Consumption) charges dues to the utilities by March 31 and the DPS ( Delayed Payment Surcharge)  on all such charges will be waived off subject to the approval by the TS Electricity Regulatory Commission”,  the official of the state Energy department said

Marri Shashidhar Reddy files petition against the GHMC election schedule

Former minister Marri Shashidhar Reddy has decided to question the reduction of GHMC election schedule in the High Court as he has filed a petition where he appealed for the extension of 20 more days against 31 days set by the Court.

Speaking to the reporters, Marri Shashidhar Reddy said that nearly seven lakhs and 90,000 duplicate voters lists came to notice in the 24 Assembly constituencies coming under GHMC limits and asked for the Chief Registration Officers(CROs) to verify the facts in the voter lists

KCR assures to provide 24X7 power supply

Chief Minister K Chandrasekhar Rao who is currently on a tour in Warangal district, launched the second phase of Bhoopalapally and Kakatiya thermal power. Dedicating these projects to the entire country, KCR said that the irrigation officials are carrying out plans in the district to ensure that the farmers are able to cultivate two crops in two seasons.

The Chief Minister gave an assurance that the Telangana government is committed to provide uninterrupted 24 hours power supply for the state and is making continuous efforts regarding the same

Hyderabad realty gets a leg-up


TS government has come up with various sops to enthuse the housing sector by removing bottlenecks in the existing building rules thus giving opportunity for fresh investment into the sector

Hyderabad: The recent auction price of the land in Raidurg village is seen as an indication that the real estate activity in Hyderabad is revived, according to P Dasharath Reddy, President, Telangana Real Estate Developers Association (TREDA).

"The higher auction price is a positive signal, even as Aurobindo has bought land for their industry needs," Reddy told The Hans India, adding that the price movement will give enough thrust to the real estate activity in Hyderabad in particular and in Telangana in general.

The pharma major, Aurobindo Pharma had purchased about 5 acres land at a price of Rs 29.28 crore an acre and 3.65 acres of land at a price of Rs 24.88 crore at Raidurg.

Reddy said that the real estate development activity was not stopped even earlier, though it was slow. "I do not like make any futuristic statements, now, but rest assured we are confident the activity is picking up in Hyderabad."

Meanwhile, the state government has come up with various sops to enthuse the housing sector by removing bottlenecks in the existing building rules thus giving opportunity for fresh investment into the sector.

Welcoming the decision, Reddy said, “Government acted proactive and accepted most of our suggestions.” He felt the new norms would benefit the sector and help the builders to complete project quickly. Recently, the Chief Minister K Chandrasekhar Rao stated that the land price at the TSIIC auction at Raidurg, Kokapet and Manikonda reveals that the real estate market is once again booming.

However, the analysts are of the opinion that the prices are high and they cite it as a reason for not participating by the major real estate developers in the country.
They feel that the prices must be realistic and on the lines of rental values, which will help to attract global investors including private equity firms to invest in Hyderabad.

However, the state officials said there are enough enquiries even from big developers and firms, and most of them are expected to participate in the next round of land auctions. According to the industry data at national level, about $3 billion has been invested in the realty business by funds and private equity firms and one more $1 billion is expected to be raised in the next three month in 2016.  

To substantiate the opinions of the developer community, the 2016 report of the 'Buy Vs Rent Report' from ArthaYantra reveals that that buying a house will be better option than renting in the Telangana capital, Hyderabad.

For instance, a buyer who is earning Rs 8 lakh a year will borrow 80 per cent of the property price, where the prices have fallen by about 10 per cent in last 4 years, while the rents are up by just 1 per cent. Instead of paying rent, the home buyer will pay EMI.

Housing for poor gets a new fillip in Hyderabad


The Modi government is set to bring changes to the Indira Awaas Yojana scheme, right from the name of the scheme to the design specifications. The scheme which aims to provide housing for the poor will include bigger kitchen space, increasing the overall area from 22 sq m to 25 sq m. Also there is a proposal to infuse this scheme with other relevant rural schemes. With all the changes, what remains unchanged is the schemes linkage to the 'Swachch Bharat Abhiyan', ensuring toilets to these houses.

Realty hopes in 2016

Real estate market across the country in 2015 was marked by sluggishness. Abundant supply and declining sales of housing units were witnessed in the year gone by. Multiple rate cuts by RBI did little to boost home sales. Recovery is most anticipated this year after a prolonged sluggishness. With the office space realty faring better and Hyderabad market outperforming some major metros, developers are hopeful that 2016 will be different than its immediate predecessor years. The passage of Real Estate Regulation Bill is also eagerly being awaited. The laws proposed to be brought forth will change the real estate dynamics of the country, opine experts.

Chandrababu's Amravati project hits green hurdle

The Chandrababu Naidu government's dream plans for a greenfield capital city at Amravati have hit a green hurdle, this time with the Union environment ministry. While a petition has already been filed before the National Green Tribunal questioning the environmental clearance to the project by state environment authorities, the Union environment ministry has now raised questions and sought elaborate details about the massive forest land diversion sought for the project.

The Andhra Pradesh government has sought permission for diversion of over 19,000 hectares of forest land to build its capital city in Amravati. The Forest Advisory Committee - the apex body in the environment minis try that approves or rejects proposals for diversion of forest land has now raised queries about the project seeking complete details about it.

"The project came to us and we have sent it back as of now seeking all details -exactly how much forest land will be used at what locations and for building what structures. In our view the project proposal sent by the state government is incomplete and we will need more information before considering it as this involves a very large forest area," highly placed officials from the environment ministry confirmed to ET. Andhra Pradesh government officials also confirmed that several queries have been raised by the Centre.

"The state government will comply with whatever the Centre has said. The details sought by the environment ministry are now being collected and we will then send the proposal with all these details to the ministry," senior AP government officials told ET.

The foundation stone for the state capital was recently laid by the PM. The TDP government is an ally and partner in the ruling NDA.

To be spread across 217 sqkm, the proposed capital city will spill into 25 villages in the mandals of Thulluru, Tadepally and Mangalagiri of Guntur district. While the proposal before the environment ministry for forest clearance for Amravati is for about 19,000 hectares of forest land, associated infrastructure could take the total forest area affected to as high as 50,000 hectares, the AP government sources confirmed. The state has been seeking denotification of 44,000 hectares of forest land.

Social activist and ex-bureaucrat EAS Sharma has filed a petition in the NGT challenging the environmental clearance to the capital city project by the State Environmental Impact Assessment Authority (SEIAA), arguing the fertile land from an ecologically sensitive area is being sought for the project. The SEIAA had accorded environment clearance in October. In October itself, the NGT had stayed construction of the capital city.