Hyderabad Economy and Real Estate

[rizwan3]

Hyderabad realty shrugging off slowdown


The real-estate sector in Hyderabad and surroundings areas is gradually shrugging off the slowdown blues and developers are banking on users to spur the next phase of growth, as against speculative buying a couple of years ago.

The Andhra Pradesh Government has also brought about changes in the stamps and registration fee structure, which will have a bearing on the overall cost of the properties.

The market shows different trends when it comes to commercial property, luxury apartments and villas and affordable business segment. Interaction with some industry players shows that there are signs of prices firming up a little in the last two months.

Interest reviving

The Chief Executive Officer of Lanco Hills, Mr S.Pochender, said relative peace and tranquillity in the State in the last six months and buoyancy in the IT sector, have generally revived interest in the property market in Hyderabad. In fact, it has taken a while for buoyancy to come back, after a prolonged slump.

The Managing Director of Koncept Ambience, Mr M.P. Agrawall, said that an early decision on the Telangana statehood issue either way would help in accelerating the growth of the real-estate business in the State. While most of the markets have revived and are doing very well in the last six months, Hyderabad is still trying to shrug off the slowdown.

“Most investors continue to be on wait and watch. But those who need houses, that is actual users of properties, are going ahead with their plans to buy. Speculators are out,” Mr Agrawall said.

The Managing Director of PEBL Realty, Mr Anand Reddy, said different parts of the city reflect distinct patterns. The new and emerging area along the corridor towards the airport, land adjacent the Outer Ring Road and land along the proposed Hyderabad metro rail project, will see greater buying interest.

“Two towers, which effectively have six tall structures, which we had taken up two years ago, have had 50 per cent bookings. We expect to add another 25 per cent by Diwali and commence work on another two towers with built-up area of about 6 lakh sq.ft,” Mr. Reddy said.

Mr Pochender said, “in Lanco hills project, about 75 per cent of the property is already booked . Now we are not in a hurry to close the other 25 per cent as we will have opportunity to make rates stiffer. The commercial property, which is now part of the SEZ, with a built-up area of about 4 lakh sq.ft is ready. Several bulk users have approached us and we expect to close deals soon. The next phase will commence shortly.”

According to the developers, prospective buyers hope that the prices could come down a little more. On the contrary, said the developers, costs are again going up, which is reflected in gradual hiking of rates by Rs 50 to Rs 100 per sq.ft in the past two months.

MARKET VALUE UP

The Department for Stamps and Registrations, Andhra Pradesh, has brought about two major changes in the stamps structure, registration charges and land value, effective from August 1, 2010.

The market value of properties in the State capital and other parts has been hiked, ranging from 3 to 25 per cent, depending upon the location and valuation. This move comes in the backdrop of the State bringing down stamp duty on registration from 7 per cent to 5 per cent.

The lowering of the stamp duty comes in the wake of the Central Government directive to rationalise the structure. This is necessary to do so for the State to have access to funds available under JNNURM, for various initiatives in urban areas.

The revision of land value is taken up periodically. It was not taken up the last two years due to economic slowdown and its impact on the real-estate sector, which had witnessed several quarters of subdued sentiment after

[india]

A friend of mine has plans to buy property in either of the following areas in Hyderabad - Kompally/Pocharam/Shamshabad/ECIL.

Budget - 25-40 lacs.
Type - 2/3 BHK Apartments/Independent Houses.
Construction - Recent (no more than three years)

What area and builder should he consider buying his property in and from respectively? Thanks in advance.

[sairamprasad999]

any one can view/request quarterly real esatae reports from the following links,
www.cbre.co.in/india/eng/marketreports
www.cushwake.com
www.dtz.com

[gentem]

Realty check! FDI grows 80 times in 5 years
Kartikeya, TNN, Aug 22, 2010, 02.44am IST

Read more: Realty check! FDI grows 80 times in 5 years - India Business - Business - The Times of India http://timesofindia.indiatimes.com/b...#ixzz0xmIqPLE9

MUMBAI: It's not Indians alone who are monitoring the real estate market here. More and more money is being pumped into India's housing sector from abroad. And this, despite the recent downturn. Foreign direct investment (FDI) in India's booming real estate and housing market jumped 80 times between 2005 and 2010.

Figures obtained by TOI show that in 2005, FDI in real estate was a mere Rs 171 crore. That soared to Rs 13,586 crore in 2009-10. In April and May this year, Rs 737 crore in FDI was pumped into the sector.

It is no surprise that the largest number of building projects where FDI is in play are in the country's commercial capital, Mumbai. Of the total 1,614 projects in which foreign investors have put in money since 2005, 422 were cleared by the Reserve Bank of India's Mumbai office, followed closely by 316 in Delhi. Other big cities like Bangalore (225 projects), Hyderabad (105 projects) and Chennai (68 projects) also enjoyed considerable attention of foreign real estate developers.

Interestingly, given the booming property market across the country, FDIs are not confined to metros and big cities alone. Thus since 2005, various real estate projects have been given a green signal by RBI's offices in Bhopal, Kanpur, Kochi, Jaipur and Panaji, amongst other places. The largest FDI in the last five years remains in the construction of a technology park at Bandra Kurla Complex in Mumbai. In this case, $372 million has been brought in through a foreign collaborator based in Mauritius.

Although the FDI has come from as many 34 countries and destinations as diverse as the Netherlands, USA, Saudi Arabia and even Sudan, data available with TOI shows that in last five years the largest number of foreign collaborators working with Indian real estate firms were based in Mauritius.

Technically speaking, the Foreign Exchange Management Act or FEMA, prohibits foreign investment in real estate and construction of farm houses. However, the definition of "real estate business does not include development of townships, construction of residential or commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure".

Hyderabad much ahead of Chennai ... City overtake Chennai by 2020 http://www.citymayors.com/statistics...ties-2020.html

[abhigtr]

Originally Posted by gentem

Realty check! FDI grows 80 times in 5 years
Kartikeya, TNN, Aug 22, 2010, 02.44am IST

Read more: Realty check! FDI grows 80 times in 5 years - India Business - Business - The Times of India http://timesofindia.indiatimes.com/b...#ixzz0xmIqPLE9

Hyderabad much ahead of Chennai ... City overtake Chennai by 2020 http://www.citymayors.com/statistics...ties-2020.html

haha anything can happen by 2020 chennai might overtake bangalore or hyd may overtake lets see in 2020 dont judge the estimates!!!!rofl

[ranga]

Originally Posted by gentem

Realty check! FDI grows 80 times in 5 years
Kartikeya, TNN, Aug 22, 2010, 02.44am IST

Read more: Realty check! FDI grows 80 times in 5 years - India Business - Business - The Times of India http://timesofindia.indiatimes.com/b...#ixzz0xmIqPLE9

Hyderabad much ahead of Chennai ... City overtake Chennai by 2020 http://www.citymayors.com/statistics...ties-2020.html

This news seems to be confusing. The news say according to FEMA (Foreign exchange management act prohibits foreign investment in real estate business like for constructing farm houses,residential and commercial premises,townships,recreation facilities etc etc than what is the reality businsess is this FDIs for? Another aspect is majority of the so called foreign collaborators are from Mauritius.Then it is a conduit to channel black money of our own people from that tax haven country.Another BIG SCAM appears in the HORIZON!!!

[ranga]

[ead more: Realty check! FDI grows 80 times in 5 years - India Business - Business - The Times of India http://timesofindia.indiatimes.com/b...#ixzz0xmIqPLE9

Hyderabad much ahead of Chennai ... City overtake Chennai by 2020 http://www.citymayors.com/statistics...ties-2020.html[/QUOTE]

One thing is for sure.If economies of U.S.A and Europe does not show improvement and take steps adverse to outsourcing inorder to bolster employment in their countries the outsourcing dependent indian cities of Bangaluru,Hyderabad pune whose economies predominantly depend on software services will not overtake but plunge (Undertake ) below most of the cities of India.

[stupid007]

Then who will buy the cars produced in Chennappa Naidu city!!

Originally Posted by ranga

[ead more: Realty check! FDI grows 80 times in 5 years - India Business - Business - The Times of India http://timesofindia.indiatimes.com/b...#ixzz0xmIqPLE9

Hyderabad much ahead of Chennai ... City overtake Chennai by 2020 http://www.citymayors.com/statistics...ties-2020.html

One thing is for sure.If economies of U.S.A and Europe does not show improvement and take steps adverse to outsourcing inorder to bolster employment in their countries the outsourcing dependent indian cities of Bangaluru,Hyderabad pune whose economies predominantly depend on software services will not overtake but plunge (Undertake ) below most of the cities of India.[/QUOTE]

[ranga]

Originally Posted by stupid007

Then who will buy the cars produced in Chennappa Naidu city!!



One thing is for sure.If economies of U.S.A and Europe does not show improvement and take steps adverse to outsourcing inorder to bolster employment in their countries the outsourcing dependent indian cities of Bangaluru,Hyderabad pune whose economies predominantly depend on software services will not overtake but plunge (Undertake ) below most of the cities of India.

[/QUOTE]

There are people like Gali Janardhan Reddy and Y.S Jaganmohan reddy and their followers who will buy cars produced in India and even import one.Chennapattnam will be exporting cars to the improving economies of countries in Europe and U.S.A on account of reducing outsourcing of services to india there by improving employment prospects in their countries.

[stupid007]

Oh! stupid that I am. I always thought that if they do the work there it is much more expensive. And if their economy booms with employment wouldn't their Ford and Honda and Toyota factories boom too.


There are people like Gali Janardhan Reddy and Y.S Jaganmohan reddy and their followers who will buy cars produced in India and even import one.Chennapattnam will be exporting cars to the improving economies of countries in Europe and U.S.A on account of reducing outsourcing of services to india there by improving employment prospects in their countries.[/QUOTE]

[rizwan3]

Delhi, Mumbai, Chennai top employment generators

Thursday, 16 September 2010, 11:08 IST


Chennai: Delhi, Mumbai and Chennai ranked as the top employment generators in the country by creating over one lakh jobs during January-September 2010, a Ma Foi Randstad survey said.

While these three cities are leading job generators, Kolkata, Bangalore and Hyderabad follow closely behind by creating 30,000 plus jobs during the same period, the Ma Foi Randstad Employment Trends Survey said.


While the health sector created over 1.21 lakh jobs, the hospitality sector created close to 63,000 jobs, it said.

Some of the leading sectors included Real Estate and construction industry, Information Technology, Education, Training and consulting, it said.

In the third quarter,those working in Bangalore are expected to get a 4.9 per cent increase in salaries, Delhi 3.5 per cent and the same in Pune, it said.

Kolkata has the highest estimated percentage of experienced workforce of 82 per cent while Delhi has 35 per cent of freshers, it said.

"We see positive trends across many economies across the globe, such as USA, Germany, France, Asia Pacific and parts of Europe which are clearly growing. I expect India to continue its economic growth and employment generation fuelled by its domestic consumption and stabilizing global economy." Randstad Holding CEO and Chairman Ben Noteboom said.

Real estate and construction sector reported the highest growth in number of people employed and expects an average salary growth of four per cent, followed by pharma (3.5 per cent) and Healthcare (3.4 per cent) in the third quarter.

"We see a clear trend of increased optimism in hiring spread across all sectors. We see the service sectors like Healthcare and Hospitality spearheading the boom by adding significant number of jobs." Ma Foi Randstad MD and CEO K Pandia Rajan said.

The survey was conducted among 650 companies across 13 industry segments that included eight Indian cities, it added.

[baigarman36]

In a free market economy, demand and supply create a check on unrealistic prices – at least that is what theory says. So when demand is less, then prices should fall. This is not happening in Hyderabad, though the real estate market has been down for over a year. The correction in pricing has been minimal compared to the unrealistic growth in prices earlier (for several years). Plus, it has not factored in and reduced prices because of the new reality - the reduced number of buyers today and the buying power of the current buyers.





Pakistan Real Estate | Fashion Website

[alinasmith001]

Hyderabad have invested heavily in digital infrastructure and is well known throughout India for its technology sector. The emphasis on education, including education of women, which is the source of productivity and the economy to thrive, the challenge to the traditional caste system. With the increasing number of IT companies in Hyderabad, the city has also experienced a similar increase in property prices. Real estate prices generally fluctuate due to three factors: the supply-demand report, the location of the property and opinion of the buyer. Real estate industry in Hyderabad has had positive results on the three points.

[stormmaker]

SOME real estate companies have shown interest in investing money and completing projects being developed by Maytas Properties,the Hyderabad-based realty firm formerly owned by the Ramalinga Raju family of Satyam Computer Services.

We are in talks with several players including the local ones.The strategic partner will help complete the project and the modalities will be worked out accordingly.The final decision is likely to come this week, Ved Jain,government-appointed director on the board of Maytas Properties told ET,without giving the details.SBI Caps is helping the firm find a partner.

Maytas Properties was founded by Ramalinga Raju,the promoter of Satyam Computer,who admitted to inflating revenue and profitability in January 2009 in Satyam,and was subsequently jailed and investigated by the Central Bureau of Investigation.He is now is prison undergoing trial.

Investor funding dried up completely for Maytas after the scandal,forcing the government to take over and appoint a new board.The firm is now planning to complete some projects including the Rs 1,100-crore Maytas Hill County project in Hyderabad with the help of other private companies,who will invest at the project level and not at the company level.Many of the companys projects have been substantially delayed and Maytas Properties had made several unsuccessful attempts to scout for private equity investors.

Bangalore-based Shriram Properties is among those who have shown interest.We are in talks with many real estate firms including Maytas to buy distressed assets with clear titles.These properties are over 15% cheaper, said a senior official from Shriram Properties.The projects in Hyderabad is going on 20% discounts as the market is on downside.It would be tough for Maytas to raise project-level funding as the investors are cautious, said an industry analyst,who did not wished to be named.

In the last one year,there has been little progress at the only ongoing project of Maytas Properties.Originally scheduled to be completed by the end of 2008,the project is not even half complete.Hyderabad-based GVK Group has also been approached by SBI Capital to buy a stake.

A senior company official confirmed the approach but said that the company has decided not to take up the offer.GV Krishna Reddy,chairman of GVK,also denied that he may invest in a personal capacity.Several non-resident Indians who have booked flats in the projects have been asking the government to expedite the firms rehabilitation.

Maytas Properties had raised Rs 650 crore from customers for the Hill County project. According to one of the flat owners,the discussions are on but players are wary as the land owned by Maytas are under the scrutiny of investigating agencies.The company had also once suggested that,customers pump in an additional 10-30 % to complete construction of their house against credit notes to be issued by Maytas Properties, said a customer who did not wished to be named.The Hill County project has 283 bungalow, 850 apartments prices between Rs 50 lakh and 2.5 crore.The company is said to have a land bank of about 6,000 acres.

Investor funding dried up completely for Maytas after the Satyam scandal,forcing the government to take over and appoint a new board The firm is now planning to complete some projects including the Maytas Hill County project in Hyderabad with the help of other private firms,who will invest at the project level and not at the company level Several non-resident Indians who have booked flats in the projects have been asking the government to expedite the firms rehabilitation

http://www.exclventures.com/News/Newslink-11008.asp

[gentem]

Commercial realty recovers on IT demand
IBM, HP, Accenture, Wipro, Cognizant Taking Up Large Office Spaces
Shilpa Phadnis | TNN

Bangalore: Riding on the rapid recovery from recession, many large firms are signing up big-ticket commercial real estate deals in different parts of Bangalore.
Industry sources say that Accenture has committed to take 8 lakh sqft in Pritech Park on the Outer Ring Road (between Marathalli and Sarjapur Road). HP and Wipro are said to have recently taken 2.5 lakh sqft and 1.2 lakh sqft respectively in Pritech.
The east and south of the city have been the traditional IT belt, but now the north too is buzzing. IBM, Cognizant, Accenture and HP will be renting space in the second phase of Manyata Embassy Business Park near Hebbal.
Sources in the industry say that IBM has committed to 5 lakh sqft of office space in Manyata phase II. The Big Blue has already occupied 3 lakh sqft in the first phase of the park.
"There is a lot of demand from our existing IT clients," Embassy Group CEO Gopi Krishnan said. The IT sector, he said, continues to expand at the highest rate in Bangalore. "In 2007, we signed an agreement with IBM to deliver 2 million sqft of space over the next four years," Krishnan said.
The IBM portfolio is so huge that it contributes 33% to Embassy's rental revenues. Other companies like Cognizant and Target are also looking at Manyata as part of their expansion plans. Embassy is developing an additional 9 mn sqft in Manyata.
Real estate consultancy CBRE estimates that Bangalore has seen an absorption of 6.8 mn sqft of office space this year. That's up from the absorption of 5 mn sqft in 2009, but still lower than the peak of about 10 mn sqft in 2008. "As companies are expanding and consolidating their operations, we see the demand for commercial real estate going up," said CBRE deputy MD (south India) Ram Chandnani.
The majority of the expansion is expected to come up along the Outer Ring Road, and the micro markets of Whitefield, Jayanagar, JP Nagar, Bannerghatta Road and north Bangalore. "The buoyancy in the market is also reflected in the rentals. For instance, rentals on Outer Ring Road have stabilized between Rs 40-50 per sqft. In 2009, rentals had fallen sharply," said Kaustuv Roy, executive director of Cushman & Wakefield India.
The pan-India office space demand over the next five years is estimated to be about 240 mn sqft.
Bangalore, NCR and Mumbai are expected to account for 46% of the total demand. Kolkata and Chennai are likely to see higher growth rates though, with suburban locations having attractive price points, according to a Cushman & Wakefield report.

total of 3 q's of 2010, mn sqft

bangalore 8.2
mumbai 5.8
delhi ncr 5.0
hyd 3.7
pune 2.8
chennai 2.7
kolkata 0.9
ahmedabad 0.25

hyd and pune are doing better than expeted..

[kdlara007]

Originally Posted by gentem

Commercial realty recovers on IT demand
IBM, HP, Accenture, Wipro, Cognizant Taking Up Large Office Spaces
Shilpa Phadnis | TNN



total of 3 q's of 2010, mn sqft

bangalore 8.2
mumbai 5.8
delhi ncr 5.0
hyd 3.7
pune 2.8
chennai 2.7
kolkata 0.9
ahmedabad 0.25

hyd and pune are doing better than expeted..

Wow, Bang'ore's figure is more than double to that of Hyd. I guess, Had the telangana agitation not happened, the demand for office space in Hyderabad would have been much closer if not equal to Bangalore.

[stormmaker]

New Delhi: The absorption of office space is estimated to rise by 24% to 32.65 million sq ft during 2010 in the eight major cities as corporates are on an expansion spree, according to property consultant Cushman and Wakefield.

The absorption stood at 26.29 million sq ft in 2009, the consultant said in a statement.

Out of total absorption this year, Bangalore topped the list with 9.9 million sq ft, followed by national capital region (5.44 million sq ft), Hyderabad (5.25 million sq ft) and Mumbai (4.37 million sq ft).

When compared with last year, Hyderabad witnessed the maximum growth in absorption at 96%.

The report further revealed that the fresh pre-commitments for office space created in 2010, due to be absorbed over the next two years, accounted for 9.2 million sq ft, which is double of last year’s 4.7 million sq ft and stands testimony to the growth plans by the corporate sector.

Almost all the major cities recorded pre-commitments of commercial office space in 2010 with Bangalore, Mumbai and Pune being the most significant ones registering over one million sq ft, C&W said.

“The pre-commitments are back and it is a healthy indication of the revival of the office markets. This also signifies that the corporate sector has been actively planning their expansion strategies which were deferred earlier due to the unfavourable economic environment,” C&W executive director (occupier services) Arvind Nandan said.

Supply in 2010 was recorded at 43 million sq ft, which is 17% less than 2009. “This is mainly due to the cautious approach adopted by developers in order to control the high vacancy of approximately 20% in the market”.

The revival in demand in 2010 and controlled supply of projects have helped to tame the vacancy level currently estimated to be 16-17%, the consultant said.

On rentals, C&W said most micromarkets witnessed about 5-15% appreciation over last year. However, the last quarter of 2010 has seen rentals stabilising across locations.

http://www.livemint.com/2010/12/2017...on-to-ris.html

[stormmaker]

After several quarters of tepid growth, the office space absorption has grown 23 per cent in 2010, while the rentals in the micro markets grew by 15 per cent as the overall demand for commercial space increased due to better macro economic indicators.

Most micro markets in the country witnessed about 5 –15 per cent rental appreciation over last year, but currently rentals have stabilised across locations. However, select location in Hyderabad and national capital region (NCR) have seen rental growing at a slower pace.

In Mumbai, the moderation in demand led to stabilization in rental values which otherwise witnessed an annual appreciation of 5-10 per cent. Rentals in Bangalore recorded an annual appreciation in the range of 5-16 per cent, while the NCR rentals grew in the range of just 2 – 10 per cent over the year across most of the micro markets.

However, office space supply in 2010 fell 17 per cent to 43 million sq ft due to the cautious approach adopted by developers in order to control the high vacancy of approximately 20 per cent in the market.

“The pre commitments are back and it is a healthy indication of the revival of the office markets. This also signifies that the corporate sector has been actively planning their expansion strategies, which were deferred earlier due to the unfavourable economic environment.

There is also a shift in demand for space in SEZ developments where major pre commitments have been recorded,” Arvind Nandan, executive director, Occupier Services, Cushman & Wakefield India said.

http://www.mydigitalfc.com/real-esta...es-23-2010-787

[stormmaker]

Most recently Hyderabad accommodation real estate is predictable for its extremely large generosity apartments. This city is flourishing glowing with its wealthy monetary classification and awareness of NRI. Property builders are place free ground-breaking suggestions and thoughts to construct more lavishness apartments in Hyderabad.

Hyderabad’s generosity apartments are intended by disreputable designers and architects. They aim for some superb themes similar to Italian structural design or Spanish fashion apartments or amazing original which in fact pull in the direction of you to Hyderabad. These apartments may be modest more expensive than other easy apartments. But if you are appearing for amazing exclusive by means of much supplementary lavishness, then this arrangement is for you.

In the intervening time the developers are leaving party no pebble unturned to depict concentration of HNI, and NRI investors absorbed in Hyderabad apartments. For an illustration, these are wholly Vastu submissive generosity apartments. These luxuriousness apartment residences in Hyderabad are thought-out by way of zero faults so it can effortlessly illustrate the concentration of people.

Intended for at present, most of the property schemes in Hyderabad are increasing border regions for example Kompally and Kondapur. Builers are appearing for that sort of region which has enormous quantity of terra firma that is convenient in these regions and also the charge of terra firma is much low than others.

It is the yellow chance for investors if you desire a housing apartment in Hyderabad Property. If you are fascinated, then don’t stoppage as on account of the small price which you will never acquire. As the stipulate will enlarge, the rate will also append to equivalent. So, fix your mentality and take the result.

Consequently, if you have currency and you are accepted wisdom for a well-appointed apartment, then why impede yourself, for the reason that golden option comes one time not over and over again.

http://www.stockmarketsreview.com/re...-in-hyderabad/

[rizwan3]

http://www.indianexpress.com/news/ad...ation/729379/0

ADB: Delhi India’s No. 1 investment destination

Delhi has emerged as the most attractive city in the country for both foreign and domestic investors, according to the latest Asian Development Bank report on a survey of Indian cities. Greater Mumbai and Chennai follow Delhi closely as good metropolitan areas for investment.

In a survey of 27 cities, the competitiveness factors evaluated were: people, catalysts, infrastructure and financials.


“Furthermore, the city is extremely well-connected to suburban cities along its periphery such as Gurgaon, Faridabad and Noida, making it the largest economic agglomeration in India,” says ADB.

Chennai’s No. 3 ranking as a potential hub for future investments couple traditional reasons such as it being a major seaport known for its manufacturing industry and recent developments such as an exceptionally high investment of Rs 34,000 crore for upgrading its urban infrastructure.

According to the report, Bangalore is a major economic hub in the country with major IT, biotech and FMCG companies but its infrastructure has not been able to keep pace with its rapid economic growth.

Hyderabad, meanwhile, is fast emerging as a top slot city in India. It is currently witnessing an unprecedented growth and is set to become the fourth largest urban agglomeration by 2011, overtaking Bangalore. The city also has the highest number of formally approved IT SEZs in the country.


According to the ADB study, the top 15 cities to invest in India are, as per rank: Delhi, Greater Mumbai, Chennai, Bangalore, Hyderabad, Kolkata, Pune, Ahmedabad, Surat, Chandigarh, Nagpur, Visakhapatnam, Vadodara, Jaipur and Thiruvananthapuram.