Hyderabad Economy and Real Estate

[Gudavalli]

Souce: Business-Standard

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) wants 70,000 acres to be notified for industrial use in the extended area of Hyderabad Metropolitan Development Authority (HMDA), which had recently published the draft master plan.
“We have already identified 25,000 acres of land for this purpose and are in the process of identifying more such suitable lands to be notified by the HMDA,” BR Meena, vice chairman and managing director of APIIC, said here.
About 6,000 acres of land is currently in use under various existing industrial estates developed by the APIIC in and around Hyderabad. An additional 5,018 square km of area around the city has been brought under the HMDA limits by the government. The total area under HMDA now extends to 7,228 sqkm, second largest under any urban development authority in the country after Bangalore city. A draft master plan for the extended areas was recently prepared by the urban body taking into consideration the developmental needs of the city till 2031.
With industry being the economic driver, any failure to earmark sufficient land for industrial purpose in the upcoming urban areas would hamper the development of the city itself, said Meena at a workshop organised by the Confederation of Real Estate Developers Associations of India (Credai) on the draft master plan.
He also said the APIIC was willing to shift the existing industrial estates into the extended areas of HMDA as they are now surrounded by residential areas and often been criticised for pollution problems. Identification of separate areas for locating highly polluting, polluting and non-polluting industries needs to be worked out based on various parameters, according to him.
The APIIC is also planning to focus on optimal utilisation of land allotted to industries as it is a limited resource. The scope for the development of all the existing industries located in the city including pharma, IT, defence components and aerospace industry needs to be extended, he said.
Hyd population may reach 20 million
Though the city planners projected a population of 18.4 million in Hyderabad by 2031 the figure could cross 20 million as the HMDA took the 2001 census figures as the basis for preparing the master plan for the extended areas of its authority, according to Rajeshwar Tiwari metropolitan commissioner of HMDA.
He said the new master plan was based on modern day concepts of city development and each aspect of developmental needs were taken care of in its preparation.
The HMDA has extended the time for receiving suggestions on the draft master plan by another two months to October 22, 2011.

[cactus_54]

Originally Posted by Gudavalli

Souce: Business-Standard

This is mere day dreaming.APIIC again indulging in the same sorts of things which they did in 2004.Now they are in deep trouble what with this EMMAR deals proving to be scam that bled the state dearly of its resources.Coming to this acquisition of 70,000 acres who will come forward to sell to APIIC after all that happened in the past.APIIC does not have resources to buy huge chunks of lands in the extended area called HMDA which is supposed to be the second largest urban area next to Bangalorewhen both Bangalore urban and Bangalore rural is around 5000sqkm only.Rajeshwar Tiwari saab hyderabadiyon ko badon me math lao

[Panorama Hills]

Vizag is home to manufacturing facilities of large public sector undertakings like Hindustan Shipyards, Hindustan Petroleum, Hindustan Zinc, Bharat Heavy Plate and Vessels, Coromandel Fertilizers, and India’s first port-based steel plant, the Rashtriya Ispat Nigam. The city plays a vital role in the economy of Andhra Pradesh, Hyderabad. So investing in Vizag real estate always pays you off in a greater way.

[Panorama Hills]

Visakhapatnam being a industrial apart from port city it is also close to the naval command. Tourism in visakhapatnam is on high spirits due to this people come for vacations and spend much time. Also it is home to state owned heavy industries and one of the country's largest port and shipyard. Apart from this small and large software companies have announced development and outsourcing cnetres in visakhapatnam. Due to this there is great demand risen for Property in visakhapatnam. And so there is a vast increase in the population. With that there is great revamping being done for real estates in visakhapatnam.

For more details regarding Real Estate in vizag

[Gudavalli]

Source: http://www.thehindubusinessline.com/...cle2493318.ece

Hyderabad, Sept. 28:
The Andhra Pradesh Real Estate Developers Association (APREDA), the apex body of real estate companies in Andhra Pradesh, today said that the market sentiment is better now compared to few quarters ago with genuine buyers back in the hunt for properties and speculative buying totally missing.
The focus of several of the large real estate developers has also been to take up affordable housing projects along with their respective existing projects. This has created excitement and opportunity for buyers as the prices have been quite stable after hitting their lows, according to Mr Bhawarlal Jain, Executive Vice President of APREDA.
Addressing a press conference here today, Mr Jain said that the Property Show held here last year amidst agitation and general slowdown managed to attract about 98 exhibitors. This year, the show is set to be larger with more than 80 per cent of the 196 plus stalls already booked for the show.
Several large real estate developers have been taking part in the event. Coinciding with the APREDA Property Show on October 15-16, Foundation for Futuristic Cities (FFC) today announced that a global summit on Vibrant Cities for a Vibrant Economy will be held. The focus of the initiative is to ensure all round development of cities, according to Ms. Karuna Gopal, President of FFC.
“The aim of the conference and the event is to try and make Andhra Pradesh a sustainable and global place to live by adopting best practices from across the world. As vibrant cities create vibrant economies, there needs to be greater focus on urban areas to ensure that the infrastructure grows and keeps pace with the general city and economic growth,” she said.

[ranga]

Entire Telangana is standstill including Hyderabad.Seventeen days sakala jana samme and still continuing has shattered Hyderabad's economy beyond redemption.this is the price the telugus pay to show love and respect to sonia

[Sienna]

Originally Posted by ranga

Entire Telangana is standstill including Hyderabad.Seventeen days sakala jana samme and still continuing has shattered Hyderabad's economy beyond redemption.this is the price the telugus pay to show love and respect to sonia

agree 100% with you.

[ygvjs2000]

you can expand the list. Not just telugu entire India is fedup with UPA, rubber stamp PM, Italian monster and chidambaram.

Originally Posted by ranga

Entire Telangana is standstill including Hyderabad.Seventeen days sakala jana samme and still continuing has shattered Hyderabad's economy beyond redemption.this is the price the telugus pay to show love and respect to sonia

[Gudavalli]

Source: http://economictimes.indiatimes.com/...w/10234002.cms

NEW DELHI: There will be a shortfall of 1.3 million housing units in the country;s top seven cities over the next five years, says a new Cushman & Wakefield and Global Real Estate Institute study. The report estimates the total demand in five years to be 2.3 million units while the supply will only be of around 1 million homes.

The report analysed demand for top seven cities-NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata. The demand for the entire country will be close to 3.94 million housing units, growing at a CAGR of 11%.

Of the 2.3 million units in the top seven cities, NCR is expected to record the highest demand of over 700,000 units, while Mumbai is expected to see the highest CAGR of 14% between 2011-15. Bangalore is expected to see a demand of approximately 287,000 units in this period. This demand will emerge primarily because of significant migration into tier I cities.

"The present economic situation may be viewed as a transitory point for the real estate dynamics in India. Although, the market looks positive in the medium term with considerable demand across sectors, the industry seems to be affected by the rising interest rates, rise in construction costs and inflation. However the long term perspective suggests that the sector will continue to witness demand in all as," says Anurag Mathur, managing director, Cushman & Wakefield India.

The report points out that this anticipated demand is likely to push property prices upwards, especially in markets like NCR, Mumbai and Bangalore where the demand supply gap will be very high. On the other hand, the tier II cities such as Pune, Hyderabad, etc, as a result of the relatively lower demand supply gap between 2011-15 in tier II cities, are likely to see appreciation of capital values at a slower pace compared to the tier I cities during this time period.

In the top seven cities, 45% of the demand will come from the mid-ranged housing segment. Most developers in these cities are focusing on the mid-range segment, which will reduce the demand-supply gap. In the affordable housing segment, though, this game will increase further as the demand will be almost three times more than the supply in the next five years. "We understand that majority of the supply will be for mid ranged housing, however, there is a very large latent demand for lower income group and economically weaker sections housing," says Akshay Kulkarni, executive director, Cushman & Wakefield India.

[Gudavalli]

Source: http://economictimes.indiatimes.com/...w/10320929.cms

MUMBAI: Office space market in India's top seven cities will see total supply of nearly 243 million sq ft by 2015 and this would be 17% higher than estimated demand, indicating a clear oversupply, Cushman & Wakefield and Global Real Estate Institute said in a report.

In Mumbai, supply at 78 million sq ft is expected to outstrip demand by 125% by 2015-end and is expected to experience some downward pricing trend going forward, the report said. Of the seven cities - National Capital Region, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata - only Bangalore will see demand for office space exceeding supply.

Bangalore will witness the highest demand of approximately 57.30 million sq ft followed by 34.4 million sq ft in National Capital Region and 33.9 million sq ft in Mumbai.

However, during this period, cities like Kolkata, Hyderabad and Chennai are expected to see a better rate of growth compared with others.

In the next five years, the highest estimated supply of grade A office will be witnessed in Mumbai followed by 40 million sq ft in NCR, 30 million sq ft in Chennai and 29 million sq ft in Pune.

"As the supply will be exceeding the demand for commercial office spaces in the next 5 years this may lead to increase in vacancy. The corporate clients in such a scenario will look for better value proposition in terms of rents, maintenance cost, parking etc, while expanding and consolidating operations," said Arvind Nandan, executive director, Consultancy Services, Cushman & Wakefield India.

Chennai is estimated to be the most active market for real estate with the highest demand growth of 15% compounded annual growth rate during next five years. Kolkata is expected to have lowest demand-supply gap owing to reduced pace of supply and second highest growth in demand during the period.

[Gudavalli]

Source: http://www.thehindubusinessline.com/...ef=wl_features

The city will continue to be a favoured destination for investments due to its unique infrastructure, and real estate prospects are good despite the Telangana agitation.


The month-long agitation for a separate state of Telangana has impacted the overall sales volumes of the real estate business in the twin cities of Hyderabad and Secunderabad and surroundings areas.
The ongoing agitation is often tending to slowdown the decision-making process of buyers, as they feel there could be potential for further downside in prices if a separate Telangana is carved out of Andhra Pradesh.
But the fact remains that prices cannot go down any further as they have hit their lows and input and labour costs have gone up. Therefore, chances of prices falling further are bleak, a spokesperson of Andhra Pradesh Real Estate Developers Association (APREDA) said.
Various real estate bodies, such as APREDA, Builders Forum, and the Confederation of Real Estate Developers' Associations of India (CREDAI) arm here, are all of the view that the best thing for the real estate sector, or for that matter the rapidly growing Hyderabad metropolis, would be to remove the uncertainty regarding the issue of creation of separate Statehood.
It doesn't matter if a separate State is carved out or there in no decision regarding that. But it will certainly impact business and buyers' sentiment if this uncertainty continues. It is on for several years now. They tend to postpone the decision when they are unsure of the outcome. Regardless of if Hyderabad is made a separate territory or is part of AP or Telangana, investments would come in, they believe, refraining to get into further conversation on this politically-sensitive issue.
However, the festive season spark beginning from Dussehra right up to Deepavali festive season, when people tend to buy homes, cars and electronic items and generally splurge, is relatively less.
FAVOURED DESTINATION

Just when things were looking up for the real estate sector, with some of the property developers jacking up prices by Rs 50 to Rs 200 per square feet, after a prolonged subdued phase, the agitation has impacted the overall business sentiment and also that of the buyers, according to a cross-section of real estate players.
But most people believe that Hyderabad will remain a favoured destination for investments for its various unique attributes — be it the new international airport, the rapidly-growing urban infrastructure, satellite townships, cosmopolitan lifestyle and culture, and large employable talent pool for the services sector, according to representatives of APREDA.
The President of APREDA, Mr Prem Kumar, said prices have bottomed out, but input costs have gone up significantly. We don't see much downside from here. On the contrary, prices could firm up. Therefore for buyers, who are keen to acquire a property, there should be no reason to postpone.
The Chairman of Manjeera Group, Mr G. Yoganand, said, “The real estate market overall is hard but there continues to be a demand for well-designed and attractively-priced properties, be it villas, apartments or commercial establishments. The demand is there, but due to uncertainty, people tend to delay decisions. We are passing through this phase temporarily.”
Hyderabad is basically a services sector growth-driven market. It attracts more people and companies into business, be it IT, hospitality or other services sectors. The infrastructure is getting better by the day.
“Sometimes, people tend to stay away due to stirs. But the city fundamentals, such as good infrastructure, will lure them again,” he said.
“Setting up of new projects, such as the new international airport and educational institutions around Hyderabad and new IT projects in the suburbs creates new jobs that attract people to invest. This will happen again, even though we may see a subdued phase,” Mr Yoganand added.
DEMAND-SUPPLY GAP

Mr D. R. Patnaik, General Manager, Ramky Estates, part of the Ramky Group, said that APREDA and Builders Associations are confident that the real estate prospects are good in spite of temporary glitches due to agitations. But the housing sector needs clear segmentation, with a focus on affordable and mid-market housing category too.
“In fact, it may not be off the mark if all major builders take to these segments that will help keep their business steady, as there is always a demand for them.
Significantly, the luxury villa segment has shown growth of approximately 18 per cent. Apart from affordable segment housing, those taking up mid-market housing and are choosy regarding locations will do well,” Mr Patnaik said.
“But, generally, it is believed that unless there is speculative buying, which is vital to keep prices firm, the market sentiment is likely to be subdued. Most of the major metros, and even cities within Andhra Pradesh besides Hyderabad, have seen prices firming up after hitting lows a couple of years ago, after the real estate slowdown. But this hasn't happened in Hyderabad,” Mr Prem Kumar felt.
According to real estate consultants Cushman & Wakefield, a total demand of 2.3 million units of residential property is likely in the next five years, and the estimated supply is likely to be approximately one million, leaving a gap of approximately 1.3 million. In its recent report ‘Embracing Change — Scripting the future of Indian real estate,' the report analysed the top 10 cities, with each city reflecting a different pattern.
Unlike upward pressure on prices in cities such as Mumbai and Bangalore, where the supply is less, Hyderabad may see a lower demand-supply gap, therefore it is unlikely to see appreciation of capital values.
In another report, Cushman & Wakefield, while discussing commercial property, stated that Hyderabad, along with Chennai and Kolkata, would see a little gap between demand and supply, due to more cautious and planned developments, supported with the higher growth potential of demand.
APREDA mentioned that business sentiment is better, and some of the developers are looking at launching new projects after a subdued phase.
It feels the mega property show it is hosting from October 15-16 would provide the necessary excitement for prospects.

[Gudavalli]

Source: http://www.indiainfoline.com/Markets...tor/5269920733

Knight Frank Research gives growth estimates of the driver industries of these states, over the next 5 years, shall translate in to a land requirement of approximately 1,72,000 acres.






Leading independent global property consultancy – Knight Frank India Pvt Ltd today announced the release of their in-depth research study on India’s Manufacturing sector.
This report provides extensive scenario of the states of Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu that are identified as the leaders in manufacturing capabilities. Knight Frank Research gives growth estimates of the driver industries of these states, over the next 5 years, shall translate in to a land requirement of approximately 1,72,000 acres.
The report highlights that over the past ten years engineering and chemical industries have witnessed the highest growth and petroleum has emerged as the largest industry in the country. During the next 5 years, petroleum sector will continue the lead in terms of growth in Andhra Pradesh, Karnataka and Maharashtra. Metal and metal fabrication in Gujarat and automobile in Tamil Nadu will be the torch bearers in terms of the growth going forward.
Commenting on the launch, Prakrut Mehta, Executive Director, Knight Frank India said, “This report will serve as a guiding light for investors and industrialists interested in participating in the promising India’s manufacturing story over the next decade. Our analysis clearly indicates that industrial output of the major industries in Maharashtra over the next 5 years will touch Rs. 15,35,100 crores from the current Rs. 6,19,400 crores. Further, the focus on automobile industry, which has been promoted extensively in regions like Pune, Nagpur, Aurangabad and Nasik, has placed it amongst the leading drivers of the state’s economy. Manufacturing sector growth in Maharashtra would result into a land requirement of 43,623 acres”
Commenting on the research report Dr. Samantak Das, National Head – Research, Knight Frank India said, ““Our research shows that petroleum industry dominates the industrial scenario in Gujarat, Karnataka and Maharashtra and we estimate that these sectors will continue their lead in 2016. Similarly, automobile industry leads the industrial activity in Tamil Nadu and this lead will be maintained in 2016. However, the industrial landscape in Andhra Pradesh is poised to witness a transformation as the lead of food processing industry will be taken over by petroleum industry in 2016. This will happen as the growth rate of 28% CAGR for petroleum industry will surpass the 17% growth of the food processing industry”.
The report presents all the basic information required to setup an industrial unit such as promotional bodies, approval processes and timelines, industrial policies and focus sectors, top industries and details of major industrial destinations. The study covers an in depth inter temporal performance analysis of the major industries in Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. Through an objective methodology these states have been identified as the most industrialized states that also offer a great future potential.
Knight Frank Output Specialization Matrix, an interesting dimension to the report, has been employed to throw light on the relative performance of an industry in the state as compared to the performance of that industry across the country. In Maharashtra, automobile and petroleum industry has found a place in the ‘outperform’ quadrant on account of a consistent output specialization compared to the rest of India

[Nilotpal]

A complete info regarding the economy and real estate status under a same roof. Very appreciative contribution of each each member of this forum.

[ranga]

Originally Posted by Gudavalli

Source: http://www.indiainfoline.com/Markets...tor/5269920733

Will Hyderabad retain the so called sparkle even after Telengana state is formed?

[murlee]

Definitely!! People didn't invest in Hyd because it is a part of A.P but because of the inherent strengths of the city called 'Hyderabad'. All it needs is a quick resolution to the problem.

[ranga]

Originally Posted by Gudavalli

Source: http://www.thehindubusinessline.com/...ef=wl_features

Cushman &wakefeild report or forecast is always way off the mark.U can see this from next year itself as there will be huge unsold stock of reality in Mumbai,NCR and Bangalore.Infact Bangalore will be in for a shock as there will be steep decline for A grade office space owing to economic slow down in the developed countries and the reality industry will grapple with huge unsold commercial space and the debilitating affect on the finances of the Reality companies.In one way the telengana agitation and the low activity in the realestate sector in hyderabad is blessing in disguise for the reality companies in Hyderabad.

[ranga]

Originally Posted by murlee

Definitely!! People didn't invest in Hyd because it is a part of A.P but because of the inherent strengths of the city called 'Hyderabad'. All it needs is a quick resolution to the problem.

Not exactly.I am an hyderabadi born and bred in hyderabad for the past 63 years yet i would say that Hyderabad inherent strenghths (If any) was fortified after it became the Capital of a larger state called A.P thereby attracting investments from the resourceful people of coastal Andhra.Even in the eighties i never thought that Hyderabad will grow so big as it is today.It would not have been if it was just the capital of Telengana.I am saying this because i was born in Hyderabad state saw formation of A.P grew along with it and know who are responsible for the growth of Hyderabad city and its surrounding but not the Telengana districts which remained backward.In fact seemandhras neglected their regions too for the sake of Hyderabad.Only vizag could become an industrial town because of sea port covering large hinterland.

[murlee]

well.. Didn't Hyd have a strong Defense related industry base even b4 the IT boom??

Anyways, the point is, Hyd is not in 1980s anymore. It is one of the top 5 cities in India and has enough momentum to sustain the growth story.

It just needs a clear solution. Industry won't care whether Hyd is part of AP or telangana now.

[great india]

Even if a new state is formed, there is nothing stopping the andhra people from coming to Hyderabad to seek employment...

[Gudavalli]

Source: http://www.thehindubusinessline.com/...cle2554980.ece

Hyderabad, Oct. 20:
The Ramky Group today announced its new non-profit venture that seeks to develop entrepreneurs holding, guiding and possibly provide seed funding during their growth path.
The Hyderabad-based diversified group, which is into real estate, infrastructure, pharmaceuticals, environment protection solutions and services, now plans to support and nurture aspirants through seed capital funding and necessary guidance, according to Mr Ayodhya Rami Reddy, Chairman of Ramky Group.
Addressing a gathering of budding entrepreneurs, Mr Reddy said that some of the corporate entities such as IL&FS, IFCI, Shriram Group and few others have also evinced interest in being part of this initiative.
Narrating his own experience and the early days of the Ramky Group set up about 15 years ago, Mr Reddy said that he had to run from pillar to post even to secure basis support or advice. It was even tougher to get bank guarantees for new projects let alone private equity funding and debt from banks who were vary of supporting a start-up.
“The situation is lot different now but yet youngsters with great ideas and drive struggle to get right advice and support. Therefore, Ramky Group has taken this initiative,” he said.
The Ramky Group now works with more than 12,000 corporate houses, 35,000 hospitals and 35/40 municipalities in the country.
“By channelising all this through a separate body, we would be able to hand-hold them during crucial phase of their entrepreneurship. In fact, this is something no management school would train or teach but that comes through experience,” he felt.
Administered by ADR Advisory Services, it has the Federation of Indian Export Organisations, joining in his initiative along with the Confederation of Women Entrepreneurs.