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:
http://epaperbeta.timesofindia.com/NasData/PUBLICATIONS/THETIMESOFINDIA/HYDERABAD/2016/01/09/Photographs/302/09_01_2016_302_005_019.jpg

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:
http://epaperbeta.timesofindia.com/NasData/PUBLICATIONS/THETIMESOFINDIA/HYDERABAD/2016/01/09/Photographs/302/09_01_2016_302_005_019.jpg

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 sq.mt in GHMC (Greater Hyderabad Municipal Corporation Area) area and Rs. 175 per sq.mt to Rs. 500 per sq.mt 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.

From giant sized hoardings to showering gift, KCR makes all efforts to win Hyderabad civic polls

 

Hyderabad: With Greater Hyderabad Municipal Corporation (GHMC) elections round the corner, the ruling Telangana Rashtra Samithi (TRS) has turned every road in Hyderabad pink by putting hoardings boasting about government's achievements. Winning GHMC elections is important for TRS as well as a matter of prestige for Chief Minister K Chandrashekhar Rao.

In an attempt to woo voters, the government is not only publicising its work but also showering gifts in the name of new projects and schemes.

But it's now publicity blitzkrieg by ruling TRS on Hyderabad roads. Giant sized hoardings and posters with picture of K Chandrashekhar Rao boasting about various welfare schemes can be seen across junctions and bus stands in the city. Some of the schemes are 24-hour power supply, old age pensions, Shaadi Mubarak scheme for brides from minority community, 2-bedroom house for poor.

To win the city's civic body polls, Rao has waived off Rs 455 crore water charges due in GHMC since 1989. He has also reduced property tax to benefit over 3 lakh families and increased the salary of outsourced staff. He has also distributed free dustbins to 42 lakh household as part of the 'Swacch Hyderabad' initiative.

His son and IT Minister KT Rama Rao said, "We have done a lot for Hyderabad. From world class roads to 24-hour power supply. People will see the work done in 18 months and surely vote for us."

This is the first election for municipal body in Hyderabad after bifurcation. In a bid to woo voters, ministers in the TRS-led government is on inauguration spree in view of GHMC election.

In the last few weeks, government has inaugurated 2-BHK houses for lower income group, laid Foundation stone for multi-level flyover project, inaugurated Japanese Park and Rose Garden for public and also laid foundation stone for new sports complex and model market at Sanathnagar.

The opposition has attacked the government calling it a poll gimmick and not delivering on many promises. The opposition parties are calling the publicity campaign by the ruling TRS party as a sheer wastage of money.

Launching an all-out attack on the KCR government, Congress leader Shabbir Ali said, "He is a dictator. Farmers are dying, there is no water for people. But Rao wants his hoardings at every corner. TRS has put 9,000 hoardings. This much money only they can waste."

Venkaiah Urges Parties to Support GST Bill

 

HYDERABAD:  Making it clear that Union government is willing to accommodate views of Congress party to the extent possible with regard to GST (Goods and Services Tax) bill, Union parliamentary affairs minister M Venkaiah Naidu hoped that the long-pending GST bill would be passed in Parliament at the earliest.

He called upon political parties, particularly, the Congress, to reciprocate the Centre’s gesture to enable the much awaited tax reform through introduction of GST in the country.

“I met the Congress president yesterday with a request to cooperate with us for early passage of the GST Bill,” he said. While interacting with mediapersons here on Friday, Venkaiah Naidu stated that introduction of GST is a matter of serious and far reaching reforming initiative. He recalled that it was first mooted by the NDA government and later the UPA government had introduced GST Bill which has pending for several years.

“There is now a broad consensus on GST due to efforts made by the committee headed by finance ministers of different states and the Union finance ministry.

In this backdrop, the NDA government has now stepped up efforts to take forward GST Bill pending in the Rajya Sabha,” he remarked.

According to him, issues raised by the Congress party have been discussed threadbare and what is feasible has been communicated to the Congress interlocutors. Any stalemate could only be resolved based on give and take, he added.

“Centre is very serious about introduction of GST given the benefits for the economy and common man. We are committed to bring a consensus on this matter. I once again appeal to the Congress Party to cooperate in this regard for early passage of the GST Bill,” the Union minister stated.

“The Union government would like the new year to mark a difference to the politics of acrimony and bitterness.

The passage of the GST bill could well mark this new beginning. Congress is entitled to its point of view on GST and the government is obliged to address their concerns to the extent possible and we are willing to do so,” he added.

ISRO Satellites and drones to Monitor Road Building Soon

Hyderabad:  New technologies are evolving in construction sector and soon Indian Space Research Organisation’s (ISRO) satellites and drones will be used to monitor highway construction programme which is aimed at fast track building of roads in the country. The Union government will soon sign a pact with ISRO in this regard,  Union minister for urban development M Venkaiah Naidu has said. “Lot of new developments like pre-cast structures, green building technologies are coming up in construction sector and builders should imbibe them and implement. The government is committed for development of building and construction sector and reforms are being taken up to revive the real estate sector in India,” he said speaking at the All-India Builders’ Convention here on Friday. Venkaiah Naidu said that relaxing FDI norms, tabling of the Real Estate (Regulation and Development) Bill and establishment of Real Estate Investment Trusts (REITs) helped in generating a positive outlook for the real estate investment market in the country. “The Union government’s measures have created positive sentiment and fostered several private equity and strategic investors, including pension and sovereign funds, to commit significant funds to the Indian real estate sector in the past 12 to 18 months,” stated Naidu. The convention is being organised by Builders Association of India (BAI). BAI acts as a bridge between government and contractors and highlights the issues of construction sector. More than 1,500 builders and contractors from across the country are participating in the convention.

Hike in value due to the metro rail factor

 

 

Please provide valuation for a two-bedroom 1200 sft apartment on the fifth floor, which is located just 100 yards from Tarnaka-Uppal main road near Habsiguda crossroads. The undivided share of land is close to 34 sq yd and apartment has a separate drawing room with four balconies. The building is 14 years old, but the construction is very good and the flat is well maintained.

K.S. Dangi

The demand for real estate, both residential and commercial, in Habsiguda, Tarnaka and Uppal is on the rise because of the upcoming Hyderabad Metro Rail (HMR). This is going to be the case in areas wherever the metro rail will be passing through. But, one has to keep in mind that the said property is 14 years old, which will be a factor in deciding its value. According to me, a rate of Rs. 3,300 per square feet will be applicable and the overall value of the property will be anywhere between Rs. 38 and Rs. 40 lakh.

Please provide valuation for a three-bedroom apartment of 1,510 sft, which includes common area, on the third floor, located in Vaishali Nagar, Madeenaguda. The undivided share of land is close to 60 sq yards and the property includes other amenities including car parking area, marble flooring and extensive wood work including a modular kitchen. The building was constructed in 2009.

B. Surya Prakasa Rao

Thanks to the development of Madhapur, Gachibowli as IT hub, the Madeenaguda, Hafeezpet and Chandanagar areas have witnessed a huge growth in terms of commercial and residential establishments and investments. The property rates have been increasing by the day in these regions. According to me, the cost of the said apartment would be Rs. 3,400 per sft and the overall value of the property will be between Rs. 49 and Rs. 51 lakh.

I have a recently constructed a super-deluxe three-bedroom flat near Saibaba temple in Sainikpuri high tension road, which is not occupied so far. There are ten other flats built in five floors. The flat area is 1900sft with undivided land share of 65 sq yrds with two sitouts and three bathrooms with decent fittings, lift and a car parking area. The flat is furnished with false ceiling and modular kitchen and cupboards. Can you please advise valuation of the flat

Padma S. Rajan

Since it is a new construction, the apartment complex will hold a lot of promise. The rate of the property would be around Rs. 3,500 per sft in this particular area. The facilities and other amenities too will play a vital role in deciding the rate of the property. The overall cost of the property would be around Rs. 65 and Rs. 66 lakh.

Please provide the valuation for a three-storied apartment on a plot of 400 sq yards at Kondapur, opposite of Capital IQ. The ground floor has two bedrooms in 1,050 sft, first floor has four bedrooms with 2,500 sft. The second floor with four bedrooms is spread over 2,500 sft. All other amenities are present.

Since the property is located in a prime area, it is obvious that the rate and valuation would be on the higher side.

According to me, the cost of the property would be between Rs. 3 crore and Rs. 3.2 crore depending on the market trend and movement. The land cost is close to Rs. 50,000 per sq yd approximately and construction cost would be close to Rs. 1 crore.

Construction city’ on 10,000 acres will be developed, says Naidu

 

Chief Minister N. Chandrababu Naidu unveiled a plan to develop a ‘construction city’ in 10,000 acres from where machinery, technologies, materials and trained manpower could be sourced.

It will be on the lines of the National Academy of Construction (NAC) situated in Hyderabad. The NAC has materials on display and contractors could hire machinery from the ‘equipment bank’ there. Besides, trained workers are available.

“The idea is to create a similar facility in A.P. Some Chinese entrepreneurs evinced interest in developing the facility. I am looking forward to the cooperation of Confederation of Real Estate Developers’ Association of India (CREDAI) for promoting it and the construction / real estate sector,” he said.

Inaugurating the 3rd Property Show of CREDAI here on Friday, Mr. Chandrababu Naidu said the Hyderabad NAC and infrastructure available with it were the best in these parts of the world and such a facility was essential in A.P to boost the prospects of real estate sector.

“My endeavour is to adopt the latest technologies and best practices in the construction sector. Development of the capital city – Amaravati – was an excellent opportunity for builders, architects and other stakeholders to grow big.

They should have credibility for that and not think of making temporary gains.

Mr. Naidu said construction sector makes a significant contribution to Gross State Domestic Product and that due emphasis was laid on urbanisation by the Central and the State governments. As the urban areas grow the demand for new buildings rises and with it goes up the need for specialists in areas like furnishing and fittings.

These opportunities should be tapped. These are the days of prefabricated structures which can be erected in a few months or even days but quality cannot be compromised, he observed.

The Chief Minister said government’s concentration was on developing cities and towns into liveable/smart places. Focus was on transforming Visakhapatnam (City of Beaches and Hills), Vijayawada (City of Canals) and Tirupati (City of Seven Hills and Lakes) into world-class cities.

Mr. Naidu said the Visakhapatnam-Chennai and Chennai-Bangalore Industrial Corridors were a boon for A.P which was in need of investments for upgrading the all – important infrastructure.

Visakhapatnam and Yerpedu (Chittoor) were poised for speedy developments as ‘nodes’ in the VCIC and Krishnapatnam in the CBIC. “My aim is to develop each district headquarters into a smart town and a growth centre”, he added.

Irrigation Minister Devineni Umamaheswara Rao, District Collector Babu A., CREDAI President (A.P) A. Siva Reddy, Vijayawada Chapter President Ch. Sudhakar and Secretary R.V. Swamy were among those present.

Hyderabad most affordable for buying, renting a house: Report

 

Notwithstanding the cut in repo rates by the Reserve Bank of India making home loans cheaper, Mumbai continues to remain the most expensive city in India for both buying and renting a house, while Hyderabad is still the most affordable market across the top eight cities, according to a research report by full service robo adviser ArthaYantra.

Though the real estate market in Mumbai has had an upward trend, it is still beyond the reach of a middle-income household. Even someone with an annual income of Rs.25 lakh would not be able to buy a residential property, making it most suitable for renting a house, said the Buy Vs. Rent Report 2016.

For the research, data was captured from multiple sources, including National Housing Board (NHB) of India, available real estate reports and major real estate aggregators for eight cities—Ahmedabad, Bengaluru, Chennai, Delhi-NCR (National Capital Region), Hyderabad, Kolkata, Mumbai and Pune.

According to the NHB’s Residential Index (NHB Residex), which tracks the movement of prices in the residential housing segment across India, Chennai remains unchanged with steepest rise in the index value by 264% from the base year (2007) and a 19.74% increase in index value over the past four years (from 2012). Pune comes next with a rise in index value by 151% since 2007 and a 38.67% increase since 2012.

 

Click here for enlarge

On the other hand, Hyderabad has seen de-growth in real estate prices by 3% since the base year 2007. Mumbai occupies the third position in real estate growth rate with index value rising 138% from the base year (2007).

Cities like Ahmedabad, Kolkata, Delhi and Bengaluru have seen a positive trend in real estate growth with rise in the index values by 115%, 112%, 90% and 15%, respectively, from the base year.

Mumbai (where average cost of buying a 1,000-sq. ft house is Rs.1.91 crore), Delhi-NCR (Rs.1.18 crore) and Chennai (Rs.75.6 lakh) have been expensive cities for buying, while rentals here have undergone only a marginal change in the past two years. Rising inventory levels in these cities indicate that supply is available, but it is unaffordable to many. So, people rent instead of buying.

In Bengaluru, inventory levels remained the same, but given that people prefer to rent than buy, rental values over the past four years have increased.

In Hyderabad and Ahmedabad, both property prices and rental values haven’t undergone any significant change in two years. Ahmedabad has, in fact, seen a negative growth in property rents since 2012, thus placing it high on the affordability-to-rent scale. Hyderabad has seen a fair increase in rental values despite a drop in property prices, which makes it affordable for buy a property in.

Cities such as Mumbai and Delhi-NCR stand to be very expensive both in terms of buying and renting a property, a trend that has been consistent year-on-year. Chennai continues to be at the sixth position like last year in the affordability-to-buy (ATB) ranking, while there is step-up in the affordability-to-rent (ATR) ranking from fifth to fourth position making it better placed for renting. Pune, over the past four years, has come down in its ranking due to a constant increase in property prices while it retains the thrid position for ATR ranking.

The current economic scenario, along with the ongoing trends in the realty market make the buy-versus-rent decision more complex for individuals. Among the top eight cities researched for this report, Mumbai and Delhi-NCR clearly stand out as places where buying a home has gone beyond the reach of many individuals

Hyderabad emerges as one of the most promising real estate markets in 2015

 

Hyderabad: In its endeavor to enhance the overall property-buying experience for the new home buyers and to offer a one-stop solution for all their property-related queries,CommonFloor.com, the leading real estate platform unveiled their Annual Real Estate Reportfor Hyderabad giving an overall perspective about the real estate sector in the city.

With the political uncertainty clearing around Hyderabad post the bifurcation of the state, the city has emerged as one of the most promising real estate markets in the country in 2015. Attractive prices and buoyant office space activity has boosted the realty prospects of Hyderabad. Backed mainly by the IT/ITeS sectors, major real estate activity was seen in the western parts of the city.

CommonFloor has done an in-depth analysis of the city and captured some of the highlights witnessed in the real estate industry in Hyderabad. The report showcases the updates in terms of the infrastructure, regulations and policies, affordability, rental demand etc.

Infrastructure updates:
o Greater Hyderabad Municipal Corporation (GHMC) has prepared Strategic Road Development Program (SRDP) to ease traffic congestion at a cost of INR 2,700- 2,800 crore and has identified 10 roads for development on priority basis

o Telangana government is proposing to set up three more Aerospace and Defence parks on the outskirts of the city over the next four years with an investment of INR 2,500 crore and will shortly unveil a sector-specific policy

o Centre cleared INR 416 crore for 12 cities in Telangana under AMRUT in order to improve basic infrastructure
Regulations& Policies introduced:

o State government unveiled an industrial policy to provide hassle-free and time-bound approvals for business proposals in a bid to attract more investors and make it easier for companies to operate in Telangana

o Telangana government plans to frame legislation to facilitate the growth of the real estate and construction sectors. It includes the ease of doing business, faster clearances and bringing about transparency in the processes

o The Telangana government has revised the lease and rental policy of the lands allotted to government departments as well as private individuals and organizations for various purposes

Major deals signed in 2015:

o Google to set up its first campus in Asia at Hyderabad, its biggest outside the US, at an investment of INR 1,000 crore

o Indian mobile phones maker Celkon Mobiles to invest INR 250 crore in its manufacturing facilities in Telangana and Andhra Pradesh over next six months

o Uber has taken up 150,000 sq. ft. space on lease in Hyderabad as part of a massive expansion drive in India. The leased space will be used as a back office and technology centre

As per CommonFloor Real Insights, Hyderabad witnessed about 50 per cent new apartment launches in 2015 as against 38 per cent in 2014.

While Kondapur, Gachibowli, Kukatpally, HITECH City and Nizampet are well-established markets, APPA Junction, Manikonda, Bachupally and Nanakramguda are emerging markets.The average launch price of properties in the top 10 markets is anywhere between INR 2,200 to 4,800 per sq. ft. Considering the infrastructure facilities and the development prospects available in these markets, the launch prices are relatively lower than other metros across the country.

Out of the total supply of units in all categories, villas and row houses saw nearly 14 per cent new launches in 2015. Considering other metros, Hyderabad saw maximum launches in this category.Considering the future prospects and the prevailing affordable prices, plots and layouts witnessed a whopping 37 per cent new supply in 2015. The average price per sq. ft. was below INR 1,000 for the top 10 localities.

Interestingly, the operational Outer Ring Road has opened new realty markets in Hyderabad, which in turn has led to high demand for plots and layouts in and around this major road. In terms of market affordability (i.e. maximum per cent of projects launched in the affordable segment), Nizampet emerged as the showstopper in the city.

As per CommonFloor Real Insights, Hyderabad saw almost equal mix of project launches in all categories including affordable (INR 70 lakh) segments. Interestingly, the average area of properties was seen to be relatively higher in comparison to other metros. It ranged between 850 sq. ft. to 1,600 sq.ft.

The report further identifies the top markets from both buyers’ and sellers’ perspective based on parameters like price change, average number of days in market, availability of properties in all segments, among others. The top sellers’ markets are established ones with limited land availability and high property values.
In contrast to sellers’ markets, the top buyers’ markets have multiple property options in same as well as in different segments. Jubilee Hills and Banjara Hills are upscale markets while Secunderabad and Malakpet are saturated residential markets with very limited scope for further development.

About CommonFloor.com:

Launched in 2007 by Sumit Jain, Lalit Mangal and Vikas Malpani, CommonFloor.com, is India’s leading real estate platform that combines property search, apartment management and vendor management and caters to a person’s complete residential requirements.

From searching for an apartment to facilitating interactions within an apartment community on the ‘CommonFloor’ platform, to connecting one to relevant service providers, the platform is dedicated to meeting all aspects of consumers’ needs around their home. With over 5 lakh active property listings from over 200 cities, it has over 1 lakh residential projects listed with it. CommonFloor.com has been funded by Accel Partners, Tiger Global and Google Capital.

To know more about CommonFloor.com, please visit: http://www.commonfloor.com

Disclaimer: The information provided in this Website is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps including CommonFloor’s proprietary data resources, and from the inputs of unidentified individuals. It ought to be considered as a guideline and not as absolutely certain. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is absolute property of CommonFloor /maxHeap Technologies Private Limited. It should not be reproduced in any form, in part or whole, without prior written permission of CommonFloor. The information is provided on an “as is” and “as available” basis. CommonFloor expressly disclaim warranties of any kind, whether express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.