Hyderabad Economy and Real Estate

[Dilip Kumar]

SalarpuriaSattva announced new mixed used community comprising 9 lakh sq.ft. of residential, 2.5 lakh sq.ft. of retail and 4.5 lakh sq.ft. of commercial space (5 Towers of 14 Floors each)

The thing is that this place is surrounded by age old slums like Boiguda, Bholakpur, Bangladesh, etc., though geographically being at the center of the city has never seen growth commercially.

The thing which makes me happy is this (Bholakpur) is where I was born and brought up and it has started seeing development atleast now

Here is the Location of the Site:


Here is the Master plan of the Projects:

[Prodigist]

With metro coming up nearby and the proposed widening of Kavadiguda road, the place will redevelop but only thing to be seen is whether people in these areas can come together and redevelop the way it's happening in Mumbai. These places are close to virtually all areas of the city but living conditions are not that great over here.

[sriece19]

Hyderabad, Bangalore, Chennai top residential investment spots: JLL

Hyderabad, Bangalore, Chennai, Pune, Noida and Navi Mumbai, in that pecking order, are the top residential property investment destinations, said Om Ahuja, chief executive, Residential Services, Jones Lang LaSalle, a global property consultant.

He chose these destinations based on existing infrastructure readiness, execution / implementation timelines for new infrastructure initiatives, demand for commercial space in the market (leading to job creation), social infrastructure, and price trends.

[Prodigist]

CBRE India Office Market View: Q32012

Hyderabad:

The coming few months are expected to observe a significant increase in demand for office space in Hyderabad. The IT Corridor and Extended IT Corridor should continue to remain the prominent areas for office leasing activity.

On the supply front, close to 1.7 million sq ft of Grade A IT space is likely to be added in these micro-markets by the end of this year. Most micro-markets are expected to witness stability in rental movement; this despite an anticipated decline in vacancy levels owing to an increase in demand and transaction closures in the near future.

Selected Transactions:

The V IT Park- Madhapur, IT Corridor- 33,862- TNS
Avance Hub- Madhapur, IT Corridor- 94,000- UHG
Divyasree Trinity- Madhapur, IT Corridor- 120,000- Amazon
Wipro Building- Madhapur, IT Corridor- 200,000- Broadridge

[Prodigist]

Naya Ventures lines up Rs 250 cr for India

Source: Financial Chronicle

Venture capital firm Naya Ventures has announced a Rs 250 crore ($50 million) fund for investing in early-stage companies in mobile and cloud segments. In operation for a year now, the Dallas-headquartered firm has so far invested in seven firms and will announce a second fund in about 18 to 24 months, according to the fund’s managing partner Dayakar Pusk*oor, an ex-Microsoft executive.

It has offices in Silicon Valley, Seattle and Hyderabad. Naya Ventures will provide capital to early-stage companies and also handhold them. Its portfolio companies have now gone to Series A or B funding, he said.

“We are not an incubator model. We will work together with our portfolio companies to identify areas to build value,” he said.

Naya has invested in BoxFish, shopping app Zoomingo, GPS-location sharing app Glympse and others. Menlo Ventures, Benaroya Capital, Seapoint Ventures, Intel Capital, Deutshe Telecom Ventures, Ignition and Rally Capital are the co-investors in Naya’s portfolio companies.

“Naya is evaluating some companies and is likely to sign deals with three companies in a month or so,” Puskoor said, adding that it has already got some commitments for the second fund. “The mobile industry has a large subscriber base and is now undergoing a transformation. This is opening up new opportunities for technology and investment,” Puskoor said.

[URSA009]

Originally Posted by Prodigist

CBRE India Office Market View: Q32012

Hyderabad:

The coming few months are expected to observe a significant increase in demand for office space in Hyderabad. The IT Corridor and Extended IT Corridor should continue to remain the prominent areas for office leasing activity.

On the supply front, close to 1.7 million sq ft of Grade A IT space is likely to be added in these micro-markets by the end of this year. Most micro-markets are expected to witness stability in rental movement; this despite an anticipated decline in vacancy levels owing to an increase in demand and transaction closures in the near future.

Selected Transactions:

The V IT Park- Madhapur, IT Corridor- 33,862- TNS
Avance Hub- Madhapur, IT Corridor- 94,000- UHG
Divyasree Trinity- Madhapur, IT Corridor- 120,000- Amazon
Wipro Building- Madhapur, IT Corridor- 200,000- Broadridge

Has wipro moved out of this building? Saw the Broadridge board a month.....wonder why?

[Gudavalli]

Metro pushes residential demand in Habsiguda, Hyderabad

Habsiguda, a major suburb in the eastern part of Hyderabad is witnessing increasing demand for residential units. Thanks to the upcoming Metro link! Since the construction of the Metro link from Habsiguda to Shilaparamam has started the capital and rental residential values in the locality have shot up substantially.

“The residential and capital values for apartments have risen by 15-20 per cent in Habsiguda since the last six months owing to the ongoing construction of the Metro link,” says Raghupathy Goud of Sai Lakshmi and Co a city based realty firm. At present the average capital values of apartments vary between Rs 3,000-3,500 per sq ft whereas, rental values vary from Rs 8,000-10,000 for a 2BHK and from Rs 10,000-13,000 per sq ft for 3BHK units.

The metro link offers easy connectivity to the city centre. This is a boon for thousands of working professionals travelling to the city daily. Direct connectivity to Hi-tech City is the major plus point of this Metro link. “Travelling time from Habsiguda to Hi-tech City would be reduced to around 20 minutes once the Metro becomes operational. Earlier it took more than an hour to reach Hi-tech City by road,” says Gautam Mohopatra of Asterix Realfin Services, a city-based realty firm.

Apart from Hi-tech City, the Metro link provides connectivity to 17 other locations spanning a distance of 21 km. These include Tarnaka, Lalaguda, Mettugada, Secunderabad, Parade Grounds, Paradise, Rasoolpura, Prakash Nagar, Begumpet, Ameerpet, Madhura Nagar, Yousufguda, Jubilee Check Post, Paddamma Temple, Madhapur and Shilparamam.

The locality only offers G+4 and G+5 and G+7 structures by small city-based builders. Some of these include Yadav Reddy Builders and Prakash Builders among others.

Presence of social and physical infrastructure like several government educational institutes such as NGRI (National Geophysical Research Institute), Indian Institute of Chemical Technology (IICT), Indian Statistical Institute etc, schools like Johnson School, Little Flower School, all major retail brands, well laid out roads, good water supply etc has grabbed the attention of buyers to this locality. With the Metro expected to reach the area by the end of 2014, the demand and prices for residential property is set to rise further.

[Gudavalli]

GHMC draft on property tax under board lens

Hyderabad: A six-member property tax board is currently examining the draft proposals on annual property tax sent by Greater Hyderabad Municipal Corporation (GHMC) a few days ago. It is likely to give few suggestions and recommendations to the premier body in the coming days. GHMC will duly incorporate the suggestions made by the board and release the modified draft that would be kept in public domain for over a month.

The corporation will even invite opinions and views of the residents of the city over the revised property tax tariffs and prepare the final chart later. The property tax board comprises of a retired High Court judge, Director of Municipal Administration and Urban Development (MAUD), Secretary and Additional Director of MAUD, president of Municipal Chairman Association and an expert in Municipal laws.

Although the property tax board was constituted last year based on the recommendations of the 13th Finance Commission, the board was taken into consideration only in the budget session of the Assembly held in March this year.

Municipal Administration Minister M Maheedhar Reddy moved a Bill for amendment of AP Municipal Act of 1965, thus making the property tax board approval a mandatory for all corporations and municipalities in the State. This was intended to hike the annual property tax in their areas.

GHMC authorities who began the verification drive in all the circles from mid-June, prepared draft proposals on new tariffs at the end of October and even circulated the copies to all the floor leaders. The corporation realised about the new law made on property tax only around Diwali time. The officials then prepared a detailed report containing information about disparities existing in property tax, the necessity to revise it, the new tariffs proposed by the GHMC etc.

This report was submitted to the property tax board on December 4.
It may be mentioned here that according to GHMC statistics there were over 12 lakh properties in the corporation limits. This includes 10.8 lakh residential properties and 1.4 lakh commercial properties. The revision drive undertaken by the GHMC would be mostly affecting the residential properties. The hike varies from 100 to 150 per cent of the previous tax amount in eighteen circles that come under GHMC limits.

Also, this verification drive will ensure that 3.42 lakh under assessed property (paying annual taxes below five hundred and thousand rupees from many decades) pay revised amounts to the corporation in near future. It is likely to get an additional amount of Rs 100-150 crores from under-assessed properties alone.

Overall, the corporation’s coffers would be richer by Rs 300 crores if the new tariffs come into effect after GHMC gets the approval from all the concerned stakeholders.

[kailash9999]

Set to begin on a promising note

Source: The Hindu, Author: T. Lalit Singh, Dated: December 8, 2012


With projects in various stages of construction , builders hope that with marginal corrections, the realty sector will boom again. Seen in the picture are residential apartments in various stages of construction at Kondapur -Gachibowli Road Photo: P V Sivakumar

After a depressing period construction activity has picked up this year, especially the last quarter which registered a sharp rise in sales.

HYDERABAD: As the year 2012 enters the final lap and heads to usher in the New Year in next few weeks, the real estate scene in the city appears stable with a promising outlook.

After a dismal track that stretched for quite some time, the construction activity has picked up in the last few months and a sharp rise in the sales has smiles replacing frowns on the faces of builders and developers in the city.

The first two quarters saw the sales starting to pick up and the developers speeding up their projects and preparing them for a handover. Lots of unsold stock that got accumulated after the real estate went in for a downward curve couple of years ago is also said to be generating interest among the prospective buyers.

Industry insiders describe the city real estate scene as being an improvised version of the pre-boom period. It’s neither as extremely euphoric as it was during the boom time nor as staid during the period that followed it. “The market is stable with an all around price appreciation in the city. Lucky are those who bought property in the first half of the year as the prices have started to climb in the second half,” says C. Sekhar Reddy, president, State Chapter of Confederation of Real Estate Developers’ Association of India (CREDAI).

The price appreciation is put to the tune of 30 per cent in the western and eastern parts of the city while the southern parts ranged from 20 per cent to 25 per cent. The northern sector of the city is described by the industry experts as logging in a relatively lesser rise during the period.

The work on the Metro Rail project taking off during the year has brought into focus the eastern part and high hopes are pinned on it for the next year. Points out Anand Reddy, Executive Director, PBEL Property Development (India), “L.B.Nagar and Uppal X-roads are the places to watch out and they look poised to grow the way Madhapur X-road grew”. Already areas such as Habsiguda and Nagole here have been witnessing more activity and land prices have escalated by Rs.5,000 to Rs.7,000 per square yard in some instances, points out Mr. Sekhar Reddy.

The incremental rise in property prices during the year is expected by most to continue next year. The positive vibes from prospective buyers has the builders seeking to quickly finish their pending projects and take up more.

The last three months has seen the launch of quite a few new projects in different parts of the city. These included Mahindra Lifespaces which announced its debut with launch of ‘Ashvita’ and Salarpuria Sattva launching their mixed-use development ‘Necklace Pride’. Mr. Anand Reddy says there is more clarity among the builders community on factors such as to which area suits what project. High rises outside the Gachibowli have turned more affordable, Madhapur continues to be prime location and villa projects are getting located in belts such as Kollur-Narsingi.

“Locations heading for saturation due to paucity of available spaces for development such as Miyapur and Kukatpally are leading to a spill over effect on new areas,” he says. Similarly, spill-over from high construction activity at Tellapur is being observed in Kollur and together, they look heading to form a development belt.

[Gudavalli]

Property tax to fall in many areas

Hyderabad: The proposed revision of property tax also has in it some ‘smiles’ to offer. The owners of a large number of commercial category buildings, in the city, can expect the tax amount to be brought down compared to what they are paying now.

Property tax on commercial properties in areas of LB Nagar, Uppal, Qutbullapur, Malkajgiri, Kapra, Vanasthalipuram, Kothapet, Kukatpally, Saroornagar, Karmanghat and Gaddiannaram among others is set to be reduced by 25 per cent to 30 per cent.

At present the tax on commercial category buildings, in these areas, is either higher or on par with up market areas like Banjara Hills, Jubilee Hills, Abids and Ameerpet.

A large number of representations poured in at GHMC office stating that civic infrastructure in areas like LB Nagar was far poor than Banjara Hills and Jubilee hills, but the tax being levied was higher in most cases.

Even the corporators from the surrounding municipalities have been continuously demanding that the tax rates in LB Nagar and Banjara Hills cannot be the same if available civic amenities are taken into consideration.

TD floor leader in GHMC, Mr Singireddy Srinivas Reddy, told this newspaper that when the property tax on commercial category buildings was hiked in 2007, the rates were abnormally increased in areas like LB Nagar, Qutbullapur, Malkajgiri, Saroornagar and Kapra.

GHMC officials admitted that mistakes crept in while levying property tax after an upward revision in 2007.

“This time the revision has been completed with the intention of not only increasing the tax rates but also rationalising it where ever it is required,” they said and made it clear that the tax rates are going to be reduced only on those commercial properties which were levied with abnormal rates after the hike in 2007.

Incentives as per GHMC Act: In case of commercial category properties, 10 per cent rebate on the total tax is given on buildings that are 25 years old, 20 per cent rebate on total tax on buildings that are aged between 25 years and 40 years, and 30 per cent rebate on properties that are aged 40 years or more.

The Municipal Act provides for this type of depreciation, a senior official in the tax section of the GHMC told this newspaper.

[Gudavalli]

Miyapur in Hyderabad to see many new residential launches

Miyapur, strategically located at NH9 in Hyderabad, enjoys proximity to the IT Hubs – Hi-Tech City and Gachibowli. The growth of real estate in Miyapur has recently been triggered by the spurt of many new residential projects.

About 12 projects have been delivered in last two years, while 30 new projects are lined up to be delivered in next 3 years. There are projects by SMR Builders Pvt Ltd, Rishi Sai Ram Projects Pvt Ltd, Divya Shree Shakti Group, Sri Shreenivasa Constructions, Amulaya Constructions, Aparna Constructions & Estates Pvt Ltd, Ushodaya Constructions and Empire Meadows among other famous developers.

These projects offer 2 and 3 BHK units, some of which are with the high-end amenities like swimming pool, club, gym, tennis ground, children’s park, etc. “About 50 per cent of the developers such as Girdhari Constructions, Divya Shree Shakti Group, Rishi Sai Ram Projects Pvt Ltd and SMR Builders Pvt Ltd are coming with these amenities that increases the maintenance cost of the unit to Rs 5 lakh, which is Rs 3 lakh otherwise”, says a local realtor, Zubair Sayed from RZ Home Property Solutions.

The sizes of 2 BHK and 3BHK units are 1050-1200 sq ft and 1360-1550 sq ft respectively. The prevailing rates for residential apartments in Miyapur range between Rs 2800 – 3300 per sq ft.

Miyapur real estate market is largely driven by end-users that mainly consist of young IT professionals and students. While the IT professionals are working in the IT Hubs- Hi-Tech City and Gachibowli, there are also buyers who come from the nearby industrial belt of Bolarum, Balapur and Bachupalli.

“With Metro coming to Miyapur, the prospects of demand and supply of property have increased to manifolds. Connected through ORR to International Airport also adds advantage to the real estate in Miyapur”, says Sayed while explaining the connectivity prospects of the area.

With all the new constructions and consistent demand and supply, Miyapur is all set to develop rapidly in coming years.

[Gudavalli]

Investors show keen interest in Hyderabad realty market

In the changing perception of the residential market, the investor segment is evincing interest to commit for future projects. As more developers are resuming new projects that are lying so far at the board room stage, there is all-round optimism among investors to get a slice of the market pie. Yet another factor that has enthused them is the reduction in home loan lending rate to mobilise additional funds for the residential units.

There are different types of investors. Those looking at city centric locations like Kavadigoda which is a business hub, old bungalows are giving way to the new developments integrating modern developments with a range of amenities. “Though villas are still the preferred investment option, city centric locations are the favourites for businessmen who cannot migrate to suburbs due to the sheer business volume and the need for monitoring continuously,” said Piyus Agarwal, Senior Manager, Business Development, Salarpuria Sattwa group which has launched its maiden project in the city recently. The other type is those who are keen to commit investment at prelaunch prices which anyway fetches between 18 and 25 per cent price appreciation during the project implementation period.

The surge in demand from investors is also attributed to the upswing in the rentals for apartments. Rental values are up by 5-10 per cent across select micro markets in the past 8-10 months, say realtors.

Yet another development is the new project launches and the willingness to offload stock at prelaunch price to investors to mobilise working capital. The investor segment which has been waiting in the wings for such an option to come is keen to commit in order to maximize return on investment. Residential property developers are also gaining confidence to launch new projects in the wake of market vibrancy and the surge in demand particularly from investor segment.

Industry sources say that the commitment from investors particularly residents is more than NRIs though the latter segment is also gradually evincing interest for investment in prelaunch offers in the fast changing scenario. The timing is appropriate for both investors and end users to enter the market, say property consultants monitoring the sales movements across micro markets.

[ranga]

City realty sees corrections in several locations: report
http://www.thehindu.com/todays-paper...cle4202093.ece
Cushman & Wakefield India’s latest report describes Hyderabad as largely an end-user driven market due to which it is sensitive to rapid price rise forcing developers to keep values in check. A look by T.Lalith Singh


It was bound to happen. And this is what the industry seniors vainly tried to emphasize on during real estate boom in the city. While the property prices climbed steeply, some had the insight to suggest that the price rise was rather ‘unscientific’ and would have to correct itself somewhere down the line.

The Cushman & Wakefield India’s latest report in a way underscores this when it points out that the residential market has seen a rise in capital values in most micro-markets across major cities in the country while Hyderabad was the only city which recorded corrections in a number of locations. According to the report, the corrections recorded here ranged between -2 per cent to -4 per cent in a number of locations. This is in contrast to most major cities, where there was an average price increase of 10 per cent (year-to-year) in mid-properties and the high-end properties grew by 12 per cent during the same period.
In the city, select micro-markets such as East and West Marredpally and Begumpet/Somajiguda witnessed a marginal correction of 2 per cent and at the same time, Kompally recorded 4 per cent correction in prices, owing to moderation in demand.

As some in the industry kept on reiterating, the rush of the boom had developers trying to spread wings all over without a proper and thorough understanding of the prospects of an area and also the demand of the buyers. Some of the right locations did continue to show a growth in the city which could be seen from price appreciation there.

The Cushman & Wakefield report describes the mid-market of Madhapur and Nizampet as a few markets with recordable increase in values put at 7 per cent and 4 per cent respectively. Both the high and mid-end in Banjara Hills and also the mid-end in Kukatpally registered an increase in the range of 1 per cent to 2 per cent in the market, it says.

The capital appreciation however was mainly attributed to proximity of commercial locations and relatively lower price points.

The report describes Hyderabad as largely end-user driven market due to which it is sensitive to rapid price rise forcing developers to keep values in check. “However in the last few months, demand from non-residents has also been slow on account of economic slowdown in global markets further affecting demand for residential properties in the market,” it points out.

At the same time, the peripheral and suburban markets witnessed correction due to this slowdown in demand as these markets have been over supplied in relevance to current demand scenario.

“Developers have consciously reinvented themselves, by launching new projects, which would appeal to customers in the current economic environment and sentiments,” says Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield.

[Prodigist]

IJM to launch new commercial development in Hyderabad

Source: http://www.bernama.com/bernama/v6/ne....php?id=915745

IJM to launch a commercial project worth 300 crores next year in Hyderabad. It is on 1.6 hectares of land.

[URSA009]

Originally Posted by Prodigist

IJM to launch new commercial development in Hyderabad

Source: http://www.bernama.com/bernama/v6/ne....php?id=915745

IJM to launch a commercial project worth 300 crores next year in Hyderabad. It is on 1.6 hectares of land.

Nice.....this has to be the land adjoining Malaysian township.....wonder if this is still going to be mall...

[kailash9999]

Good news, finally many of the projects that were sleeping or stuck in Hibernation mode for the past few years are finally seem to be waking up.

And wasn't that land under some sort of a dispute with the flat owners of Malaysian Township or something like that ? Remember seeing a story about it on TV9. Even the stretch of land infront of existing Malysian Township also belonged to IJM right ?

Finally I don't think a mall might come up here, since there is an oversupply in that area, might be changed to something else just like the adjacent RMZ Esplanade which I still hope will be constructed as earlier planned.

[Gudavalli]

Luxury segment of real estate market in city on road to recovery

PUNE: After a lull of over a year, the luxury segment of the city's real estate market has shown signs of a comeback. Realty sector experts say that there has been a steady increase in luxury projects across cities in India and Pune is a big contributor to this movement.

"Bangalore is at the top of the chart as more than 50% of total luxury units launched in 2012 are there, while Pune has a contribution of nearly 8%," Shveta Jain, executive director of realty advisory company Cushman & Wakefield India, told TOI.

"Residential luxury market in India has exhibited a bullish behavior despite a slowdown in the real estate market of India during the last couple of years. The growing demand in the segment is mainly due to the increase in the number of high net worth individuals (HNIs),'' she said.

Ashutosh Limaye, head of real estate investor services at realty research and advisory company Jones Lang Le Salle (JLL), said despite global economic and financial crisis, the Indian residential market has been relatively stable. "Luxury homes is a growing preference of new age buyers and that has encouraged developers to launch luxury or super luxury housing projects priced between Rs 1 crore and Rs 20 crore.''

The data available with Cushman & Wakefield indicate that there has been a steady increase in luxury projects across the major cities in India.

While cities such as Hyderabad, Bangalore and Pune have witnessed an upward trend in the total number of luxury housing units launched, cities like Mumbai, Kolkata, and the NCR have witnessed a decrease in the total luxury units launched in 2012 in comparison to 2011. In Bangalore, Mumbai and Hyderabad, the luxury segment contributed 7%, 5% and 5% respectively of the total housing supply in 2012, while in Pune it contributed nearly 1%.

Locations such as Goregaon East in Mumbai, Gurgaon in the NCR, Hebbal in Bangalore, and western Hyderabad witnessed the highest capital appreciation at 44%, 42%, 21% and 13% respectively in 2012, the firm said.

The enthusiasm of developers is visible as Pune and surroundings witnessed the launch of three high-end homes projects in less than a month's time, with each unit carrying a price tag of Rs 1 crore upward, going up to Rs 7 crore. Pune witnessed launch of three luxury projects in 2012 in comparison to two projects last year. While the number of total units launched in 2012 increased by nearly 170% over those launched in 2011, the number of luxury units launched in 2012 increased by more than 250%, Cushman & Wakefield pointed out. The average launch price of luxury projects launched in 2012 increased by nearly 20%, compared to 2011.

Sanjay Bajaj, managing director for Pune at JLL, said: "Despite the cautious economic climate, there is still a lot of wealth generation happening among India's HNIs. The luxury homes segment is not a huge contributor to the overall real estate demand in the country, but it has a definite - though limited - clientele and developers who are catering to it. Pune has a relatively good demand ratio for luxury housing in the country; thanks to better amenities and less exotic land prices.

Rishabh Siroya, director of a realty firm, told TOI that seekers of luxury homes are showing renewed interest, though there was never a slump as far as this segment was concerned. "It's perhaps a coincidence that developers did not launch any ambitious high-end homes project in the last one year or so, but there was no question of demand for these properties at any time. Recession never hits luxury. If one wants to buy a Rolls Royce car, he buys it - good markets or bad,'' Siroya said, adding, "The key to luxury housing is that the buyer must be convinced about the features he's getting. Once that happens, price is no hindrance."

Abhisheck Lodha, managing director of a Mumbai based realty company, offered a different paradigm for luxury. "Luxury is a state of mind. Strangely, however, luxury has been connected with the price of homes. It is important how a person feels living in the house he occupies and the comfort he draws from its surroundings," Lodha said. Lodha added that the market for high-price homes was niche one and thus small. "This segment is about 4% of the country's residential market, led by select cities such as Mumbai, Pune, Bangalore, Chandigarh and Delhi NCR. It is, however, growing steadily on the back of rising aspirations and higher disposable incomes.

Luxury housing in India is here to stay, but will probably never cross the 5-6% of the overall real estate demand, Bajaj said. "The rich-poor divide is still too big. While buyers of luxury housing are less affected by economic fluctuations than the middle-class, it cannot be said that performance of the economy does not drive the sentiments in this segment."

[Gudavalli]

Rental market remains stable in Kukatpally, Hyderabad

Kukatpally, an old residential locality of Hyderabad is now witnessing stability in rental values from past one year. Known for its peaceful and quiet environment, the area is now famous among those looking for renting options. Easy availability of apartments on rents, proximity to the neighbouring IT hubs such as Hi-Tech City and already existing infrastructure makes it an ideal residential rental hub of Hyderabad. The area is well connected with areas such as Nizampet, Kondapur, and Miyapur.

“Demand for apartments to be taken on rent is still there. Thus the demand for 2BHK and 3BHK units is still high,” says Sunil Kumar, partner, SVS Info Solutions, a Hyderabad-based realtor. MagicBricks.com data supports the trend. As per the latest PropIndex data, Kukatpally has seen a significant growth of 11 per cent in rental rates during the July-Sept period as compared to the Apr-Jun period.

A 2 BHK old unit comes in the range of Rs 10,000-11,000 per month. A similar sized semi-furnished and newly constructed apartment comes for a rent of Rs 13,000-14,000 per month. Apartments located within gated societies command slightly higher rentals. Large 3 BHK units come for Rs 17,000-18,000 per sq ft.

Several IT companies are relocating near Kuktapally, leading to increased off-take of properties on rent, the PropIndex adds. The only exception remains the old KPHB Colony, which witnessed a drop of 10 per cent in rental values during the same period owing to the gradual transformation of this residential hub into a small commercial hub.

But there are concerns in the market. Despite stable demand, it is expected that the area might witness competition from other new emerging areas. “The new areas offer new schemes of investments along with new construction and large space within the society,” adds Kumar.

Kuktapally might lag in comparison to new upcoming areas due to some other vital issues. “Availability of water is also a concern in the area. This might hinder the stable demand for rented accommodation in Kukatpally,” adds another realtor based in the area. In addition while Kuktapally remains a pure residential area other localities offer a mix of commercial and residential.

[Gudavalli]

Gachibowli in Hyderabad seeing increase in demand for office space

Gachibowli, a major IT hub in Hyderabad, is witnessing a rise in commercial sector along with residential growth these days. The submarket is slowly but steadily seeing demand for office space from new IT ventures and local services and financial sectors of the city.

“Gachibowli has registered 8-10 per cent growth in capital and rental values of commercial properties during past quarter,” says Faiz Ahmed of Navya Properties. The ready to move in Grade A office spaces are fetching more demand from corporate and noticing higher appreciation in rental values. The current rental values of office space vary from Rs 30-40 per sq ft per month. Availability of quality space at affordable value is the major attribute fuelling Gachibowli’s commercial and residential sector, he adds.

Gachibowli’s excellent connectivity to outer ring road, express highway and proximity to Metro station are the other unique selling points of the area acting as catalyst and spearheading the commercial realty growth. Gachibowli already houses major IT companies such as Microsoft, Accenture, Wipro, Infosys, Polaris, NVIDIA, etc.

According to Vikas Kumar of Kumar Realtors, “Availability of land parcels for luxury corporate offices that too at competitive prices is prompting developers to launch their new commercial projects here.” Also, Gachibowli’s strategic location near to Hi-tech city, international airport and Mumbai expressway is proving to be beneficial for both the developers and corporate, he adds.

“Gachibowli is slowly entering the list of preferred locations for office space occupiers,” says Ramu Kumar, a property advisor at Srigdha Projects and Constructions. As there is less leasable space in Hi-tech City, Gachibowli is considered as the next potential option for office space, resulting in increased number of enquiries by approximately 20 per cent in last three months. The submarket vacancy figure too dropped by 5-7 per cent owing to enhanced leasing activity. Aviva, Zensar and HGS are the recent players choosing Gachibowli to commence their businesses, he adds.

Shanta Sriram Tech Park by Shanta Sriram Constructions Private Limited is the latest new project launched in the submarket apart from IT SEZ by DLF offering office space priced at Rs 5,500 per sq ft. Gachibowli has well developed physical and social infrastructure in place and thus certainly has huge growth potential to become next IT hub as anticipated.

[Gudavalli]

Land to cost more in Hyderabad

On witnessing the spurt in real estate development land prices which were under intense pressure due to the cascading impact of political uncertainty, are now bouncing back with landowners reluctant to negotiate on the pricing for development. With more developers now keen to invest in land for development, demand for land is reaching a new high with prices hardening in the bargain.

In prime areas like Banjara Hills and Jubilee hills, land prices which were quoted at Rs 50,000 – Rs 65,000 per sqyd has now touched Rs 85,000 – Rs 90,000 per sqyd in a span of 2-3 years. In suburbs like Kompally, land prices which were offered at Rs 16,000 – Rs 23,000 per sqyd are now quoted at Rs 35,000 – Rs 38,000 per sqyd. If it is abutting the national highway, prices are high at Rs 55,000 per sqyd though no transactions have been reported to justify the increase, say realtors. Apartment prices in and around Kompally are up from Rs 1700 per sqft to Rs 2200 per sqft.

Earlier landlords were flexible in demanding their slice of the pie in joint venture development. Now they are becoming rigid on seeing the market revival and the inquisitiveness with which more developers are entering the market for development, feels William Sundarraj, director,Deccan Realty India.

Even areas like Shamirpet, a suburb in Rangareddi district on the northern outskirts of Hyderabad and home to the Genome valley and other educational institutions, and considered as the resort belt, land prices are up by 50 per cent from Rs 80 lakh per acre to Rs 120 lakh per acre. Smart local investors who had wisely invested in land during the downturn have virtually made a killing by reaping rich dividends, according to property consultants.

There are others who had invested in ongoing projects at bargain prices where developers were struggling at one stage to recover their initial investment. Those investors’ units are now coming back to the market for sale on seeing the perceptible signs of market revival. Investors are able to offload their lock at much lower prices than the prevailing market prices with the result that homebuyers are sitting pretty and watching the developments in order to derive maximum gain in the bargain.