Hyderabad offers best choice among metros for realty investment: M Nanda Kishore

Hyderabad

Hyderabad remains a high potential city for growth given its strength in IT, infrastructure, pharmaceuticals and education. According to reputed Hyderabad-based developer, Ramky Estates & Farms Ltd (REFL), compared to other metros, Hyderabad real estate is the most affordable and therefore, the best choice for real estate investment from both, investment and self-use perspective. The city boasts of an excellent infrastructure, healthy demographic profile, and good connectivity with the other metros.

While answering queries on “Prospects of Hyderabad Realty” on the Gurutalk chat forum on MagicBricks.com, Executive Director (ED), M Nanda Kishore of REFL addressed real estate concerns from over 50 users. The queries ranged from the localities and areas for investment in Hyderabad, future of the city given the Telangana issue, rental yields expected, properties within a budget range, prospects near international Airport, plot investments, among others.

Clarifying the doubts on the minds of many users, Nanda Kishore said that irrespective of the political scenario in the city, Hyderabad continues to be an attractive proposition from a business perspective. “Hence, Real Estate will deliver value in this city,” he said. Answering repeated queries from users on the prospects of investment in the city, Nanda Kishore pointed out the prospects of real estate in Hyderabad are very good as currently the price levels are very low. When the requirement is for self-use and in the central business district (CBD) of the city, an apartment is recommended. If it is on the suburbs, and budget permits, independent villa can be opted, he added.

In the budget range of Rs 15-20 lakh, Nanda Kishore suggested options in North Hyderabad localities such as AS Rao Nagar and Alwal, Uppal in the east and Miyapur and Bachpally in the west. Among the emerging localities within the city, Kishore recommended West Hyderabad as it is the fastest growing area and places like Miyapur, Nallagandla, Narsingi, Kokapet are also good locations.
Answering a query on the rental yields being witnessed in Hyderabad, he said that commercial space has yielded typically between 9-12 per cent while the capital appreciation on residential has been at 15 per cent. For a user investing near Raheja Mind Space IT area, Nanda Kishore said that this is one of the best locations to invest in because of its proximity to IT corridor and the financial district. Moreover, several malls and hotels are also coming up around this location.

For someone with a budget of Rs 60-70 lakh, Nanda Kishore recommends locations in and around Hi-Tech City and Gachibowli. The four active growth corridors in Hyderabad, according to Nanda Kishore, are Gachibowli, Narsingi, Nallagandla and North Hyderabad. Talking about the infrastructure projects in the city, he mentioned there are several including Hyderabad metro rail project and the Tata Aerospace project.

Towards the conclusion, Nanda Kishore reiterated that the pros of investing in real estate in Hyderabad are low prices, good infrastructure, demographic profile, strong IT development. In addition, the general development in retail and commercial space owing to IT companies setting up base is making the city an attractive destination.

Realty booming in Nalgonda

Hyderabad

It’s a realty roll in Nalgonda district at the moment. From Rs 1,500 per square yard a couple of years ago, the land rates have skyrocketed to Rs 15,000-20,000 per square yard now. The realty boom may have gladdened the realtors and land owners.

Thanks to the huge demand for residential complexes, the new bypass road and Mahatma Gandhi University in Nalgonda, Narketpally, Kodad and Miryalaguda have emerged as realty hubs.

The stretch between Nalgonda and Narketpally sells like hot cakes extending up to Duppalapalli. Sagar Road up to Chintagudabavi and Darvesipuram on Devarakonda Road is also a ‘hot realty’ zone. “Nalgonda has suddenly become a hot spot for realty boom because the water crisis has been resolved to a large extent. Previously, we used to get water once every 8-10 days. Now, the situation has improved with Krishna water supply once every three days,” Burra Prem Kumar, a resident of Narketpally, said.

Market analysts said people from neighbouring districts such as Hyderabad, Rangareddy, Guntur and Krishna are coming forward to buy plots because of huge employment potential as well. Businessmen and upper middle class people from Nalgonda, Miryalaguda, Nakrekal, Chityal, Suryapet, Neredcharla and Huzurnagar went on a borrowing spree to buy huge tracts of land to make quick bucks. “Those who got hefty returns started re-investing hoping to rake in more moolah,” an expert pointed out.

Source: The Times of India, Hyderabad

Tellapur township to become a reality soon

Hyderabad

Five years after the proposal for the development of mega integrated township at Tellapur near Ramachandrapuram, the project will finally take off soon. But the project will come up in 100 acres not in 400 acres as proposed earlier.

The Hyderabad Metropolitan Development Authority (HMDA) has agreed for the revised project proposal and sent it to the Municipal Administration and Urban Development (MA&UD) department for approval.

The project developer Tellapur Technocity Pvt Ltd proposed the integrated township at Tellapur by a consortium led by Tishman Speyers and ICICI and Nagarjuna Constructions Company in 2007 along with the erstwhile Hyderabad Urban Development Authority (Huda) on revenue sharing basis.

The project costing about Rs 2000 crore includes an SEZ for IT companies, offices and residential space in 400 acre close to the Outer Ring Road (ORR). The project is also about five kilometers from Hitec city and Financial District at Gachibowli. As per the original proposal 30 million built up area was to be provided in the township in eight years for Class A commercial, residential, recreational and mixed use. A special purpose vehicle Tellapur Technocity Pvt Ltd was also formed after taking over the land.

The consortium members took the 400 acres land at the rate of Rs 4.21 crore per acre from the Huda. The developer paid about Rs 420 crore (1/4th ) of the total Rs 1,700 crore amount immediately. The rest of the amount was supposed to be paid within six months.

But the developer did not pay the amount due to slump in the real estate market and also 240 acres allotted for the project is in legal wrangles. The urban development authority also did not insist for the balance amount payment since major part of the allotted land is in litigation.

As the real estate market is recovering slowly for the past one year, Tellapur Technocity representatives mooted the proposal to take up the project but in the 100 acres for which the amount (Rs 420 crore) was already paid in 2007. After the revised proposals were submitted by the developer, it was sent to MA&UD by the HMDA recently.

The erstwhile Huda agreed to provide infrastructure like laying of special road from Wipro to Tellapur project site and Project site to Outer Ring Road at the time of agreement. Since the project is revised, the revenue share to the authority will also come down automatically. It is also proposed to withdraw some conditions like provision of infrastructure to the developer, sources said.

When contacted ORR project director V Samuel Anand Kumar said the state government had asked certain clarifications from the HMDA especially financial implications on the authority due to revised proposal. The details would be provided to the government soon, he said.

Source: The Times of India, Hyderabad

Pros and cons of occupying flats on topmost floor

Hyderabad

A fact that all prospective home buyers would have noticed is that the topmost floor flats in an apartment building are the last to be sold. Moreover, buyers have to shell out the highest rate per sft for the topmost floor flat.

Regarding the heat factor, interior designer Shantanu Chaudhari says, “The topmost floor flats are usually 4 to 5 degrees hotter than the rest of the floors. Leakage is also a potential problem if the builder hasn’t done a good waterproofing job. Getting a false ceiling done throughout the house can reduce the heat considerably. Cooling agents such as thermocol, mineral wool etc. can be used in between the false ceiling to reduce the heat even further.”

Residents who occupy top floors will vouch for the breathtaking views, more so from a 16th or 25th floor! Seema B, has been living in the third floor flat of a three-storied building for the last 10 years. Seema’s home is surrounded by treetops and the sight of lush green canopies is a rare delight in the concrete maze that the city has become. She feels that topmost floor flats offer ample sunlight, and lights need not be switched on till it is dark. She says, “Heat is a problem, but only during summer time. Every year, before summer starts we get the terrace roof painted with a coat of white cement. That provides considerable relief. We have never had any leakage problems though. However, this flat has an open balcony which is easily accessible from the terrace. Grills on all the windows and balconies become a necessity.”

Techniques such as using window blinds during the day, thick curtains that don’t let the heat pass through, placing potted plants on the roof and in the house, will help to beat the heat during summer. Air-conditioners may be need to work overtime to cool the room during summer which will add to the electricity bill.

K Sreevikas Seenaiah, GM, sales and marketing, Emami Constructions, says, “Most customers are concerned about the ceiling alone but forget the walls of the apartment that are exposed to the sun also get hot. Nowadays, with most developers adopting new and better methods of construction, heat shouldn’t be some troublesome. For instance, developers now use AAC blocks that are more heat resistant.” He feels that topmost floors offer hassle-free living. He says, “The ventilation for the higher floor is the best. It’s like having an altogether different lifestyle with great views, fresh air and sunlight streaming into the house. Since there are no upper floors, noise such as shifting furniture or children running around and so on is not there. Even if it is expensive, some prefer to stay on the topmost floor. Since 100 percent power backup for elevators is now common, living on the topmost floor shouldn’t be a problem.”

Another factor that may dissuade some buyers is the resale value of the flat, since the builders themselves find it difficult to sell top floor flats. All said and done, buying a top floor flat is not such a bad idea, if you are willing to overlook the slightly higher temperatures during the summer months.

Source: Times Property, The Times of India, Hyderabad

IT sector pushing commercial growth in the Hyderabad suburbs

Hyderabad

Hyderabad city is witnessing enhanced demand in the commercial sector owing to expansion of IT industries. The prime areas of the city such as Hi-Tech City, Kukatpally, Banjara Hills and Gachibowli are already saturated and there is hardly any space available. Therefore, the demand has shifted to suburban locations, said Kumar Rajiv from Realty Infra Pvt Ltd. He further added that there has been a surge in the commercial sector from the top multinational companies in the past 6-8 months. Many new companies are interested in commencing their operations from the city apart from the expansion of already existing firms.

According to another city-based realtor, Sandeep Malik from DK Associates, “the Central Business District (CBD) areas have seen an average hike of up to 25% in the rental values of office space whereas the capital values noted an appreciation of 10-15% during the past six months.” The commercial space in the CBD areas is unaffordable these days. This has resulted in development of suburban areas such as Uppal, Pocharam, Tellapur, Miyapur, among others.
The upcoming areas are seeing a very good response from the tenants and the spaces are already pre-leased before possession. Few of the upcoming spaces are KRC Mindspace in Pocharam leased by Genpact, TSI Waverock Phase-2 taken by DuPont and similar other companies such as Silicon IT Solutions, Software Consultancy, ebay Services booking spaces in these areas, says Malik.

Apart from new ventures, the existing companies such as L&T, Cisco, Tata, Infosys are also expanding their business in the city and thus, they need more office space which is only available in the suburban areas, says Arun Pratap from Vaibhav Infra. Availability of quality space at affordable values in the suburban areas along with enhanced connectivity is the major attribute of the commercial growth.

Hyderabad Metropolitan Development Authority (HMDA) is also taking initiatives in improving the transportation services within the city and with the suburbs and has already approved an inter-city bus terminal at Miyapur. On the other hand construction of outer ring road is also in place. It is anticipated that soon the city will have far better connectivity and infrastructure facilities. Hyderabad burgeoning IT sector is not only boosting the city’s economy but also bucking the realty sector by manifolds.

Favourable time to buy property in Hyderabad

Hyderabad

The state of Andhra Pradesh may be mired in political controversy aggravated further by the continuing Telangana imbroglio but the uncertainty also offers an ideal opportunity for real estate investors to own their dream homes at competitive prices. If the trend in the number of enquiries for residential property over the six month period is any indication across micro markets, there is a growing realisation among prospective buyers that the time to enter the market is now as good times do not last longer.

In the midst of lesser number of new residential projects and the prices remaining steady, existing stocks are getting sold out, according to market sources. There has been a spurt in the overall quantum of home loans disbursed by leading institutions in the city, a clear indication of the improvement in home sales reported by many developers across the city. On an average Rs 800 – 900 crore worth home loans are being disbursed every month in and around the city.

According to industry sources, there has been an increase in the number of enquiries for apartments both for rentals and outright buying across all micro markets. Even though land and apartment prices have moved north in the past six months, apartments at prime locations in the city are still offered at Rs 6,500 – 7,000 per sqft. While retail rentals are quoted at Rs 120 per sq ft per month for ground floor, it varies from Rs 50 – 90 per sq ft per month for upper floors.

Residential property prices are stable and in some areas inching high due to demand exceeding supply levels. “The valuations are attractive today across most micro markets in Hyderabad for any medium-term to long-term investors”, said Aju Thomas, President, APRA. In the midst of limited projects being launched, existing stocks are getting sold and once the market sentiment improves, it would go north, feel property consultants monitoring the price movements of residential property in the city.

Even high-end units are being offered at competitive prices. In areas like Kompally where improved connectivity levels have reduced the commuting time, built 4 BHK villas are offered at Rs 1.2 crore and above with amenities like swimming pool, sprawling garden area, landscaping, servant quarters, etc.
On the commercial front, rentals are up in Hi-tech city areas due to supply constraints including in non-SEZ buildings and the next option for corporates is Gachibowli.

Bahadurpura in the fast lane of development

Hyderabad

Bahadurpura is all set to become the next residential and commercial hub of the Old City going by the spurt in real estate activity in the area and its surroundings. Connected to developing areas such as Shamshabad and Attapur via Kishan Bagh as well as with the core Old City localities, Bahadurpura is fast becoming the preferred destination for businessmen and residents alike.

Unlike the cluttered core Old City, Bahadurpura has wider roads and relatively larger tracts of land and showroom space available. Of late, construction activity here has visibly gathered pace. While high-rise buildings are not allowed in most parts of the Old City as they are declared “congested areas” by the municipal administration and urban development department, Bahadurpura is one among a handful of areas in this part of the city that are exempt from such a restriction.

Observers say that at least five big ventures, residential-cum-commercial properties, are being developed along NH 7, also known as Zoo Park Road. “Buildings are coming up in 15,000 square feet and 35,000 square feet area and are being constructed for commercial and residential use. Also, it is a high-rise buildings approved area. So, the sky is the limit,” notes a real estate expert. Complexes with modern amenities and ample parking spaces are being constructed, with prices on a par with developed areas from the other parts of city. NRIs too have started investing in real estate projects. Saurabh Shetty from Krissh Housing and Real Estate says, “Buyers from affluent backgrounds and NRIs have started buying apartments in Bahadurpura. The ground floors are being constructed with the intention of giving them on lease to showrooms and other retail chains. The connectivity of this neighbourhood to the airport also contributes to the increase in commercial activity here.”

S A Qaisar, another real estate developer, notes that there has been increasing construction activity not only here, but also areas in Kishan Bagh inching towards Bahadurpura. “The construction here is more organised than in other parts of the Old City. Prices of residential areas have reached Rs 2,800 per square feet,” he informed.

Interestingly, most conspicuous in this part of the city are the bike showrooms. In fact, there are five bike showrooms in a half a kilometer stretch near Bahadurpura crossroads. Figures from the Bahadurpura RTA indicate a strong two-wheeler market, recording 950 registrations per month, although unofficial estimates peg it at a strong 1,200.

S M Raza Abidi from Prestige Hero at Bahadurpura crossroads says, “I set up shop here in 2001 when the land prices were around Rs 8,000 per square yard; now the price has gone up to Rs 28,000 per square yard. My customers are from both the Old City and the newer parts of town. There is hardly any two-wheeler showroom in the Old City proper due to space constrains. That gives us an edge over others and we sell between four and five hundred bikes per month. The area, especially near the crossroads, is more developed than many other parts of the Old City.”

Dinesh Rathi, manager, Sri Ganesh Motors, authorised Yamaha dealer said, “Youngsters from as far as Tolichowki and Mehdipatnam come here to buy bikes. The future of this area looks promising for business.”

Source: The Time of India, Hyderabad

Hyderabad expecting revision of property tax

Hyderabad

Hyderabad is expecting 

general revision of property tax from this month which is slated to hike property taxes for the next fiscal year. Property Tax is a major source of income for the GHMC and is levied on all lands and buildings within the municipal corporation limits. Recently, the GHMC commissioner MT Krishna Babu at a meeting convened to review property tax status asked the tax wing officers to raise demand notices (tax bills) for Rs 1,200 crore and to try and achieve a target of at least Rs 1,000 crore in the ongoing 2012-13 FY, aiming for about 33 percent increase from the tax target of Rs 752 crore raised for FY 2011-12.

The GHMC has been collecting a minimum of 50 to 60 paise per sft for residential buildings and a maximum of Rs 1.25 per sft. For residential properties in slums, only 40 paise was being collected from property owners. On the other hand, commercial buildings are billed between Rs 5 and Rs 20 per sft depending upon the area. GHMC plans to revise property tax rates based on locality, building type, usage and rental value.

This revision in rates comes amidst protests from the real estate community as well as property owners. Bimal Kedia, Managing Director, Theme Ambience Constructions says, “There is no need to increase property tax rates. The rental rates over the last decade have tripled generating more revenue. These new rates only burden the tax payer, and hold no good for the market.”

Moreover, there have been concerns over the quality of services provided by local bodies despite the revenue collected. Water and electricity shortage plague areas that have some of the highrise residential landmarks of the city. Also, poor connectivity within the city leads to a lack of basic amenities in many residential projects. Vinod A, GM, Marketing and Corporate Communications, PBEL says, “Most buyers of the projects from the top builders in the city don’t mind paying taxes but expect infrastructural facilities such as roads, water and sanitation. The civic authorities have been unable to adequately rise up to this requirement.”

Stoically maintaining silence on the issue is the GHMC except for citing details from their expenditure. A senior officer from the civic body says, “It is only a proposal at this stage and residential tax rates for the MCH area have not been revised for the last three decades. So we will carry out a survey aimed at collecting accurate comprehensive data of the developments within the GHMC limits. We will classify places according to the infrastructural facilities they receive and accordingly evaluate the rental value and tax. These will again be published officially. There will also be a ‘calling for objections’, after which the plan will be put into action. The whole process will take approximately six months to be put into action.”

Source: Times Property, The Times of India, Hyderabad

Growing Infrastructure driving Commercial Sector in Hyderabad

Hyderabad

Hyderabad

The paradigm shift in the Hyderabad real estate industry can be attributed to enhancing city’s 

The paradigm shift in the Hyderabad real estate industry can be attributed to enhancing city’s infrastructure and facilities day by days. According to Sandeep Mishra from Shree Estate Agency, “The initiatives taken by State Government as well as private sector in improving city’s basic infrastructure such as transportation, connectivity, improved basic civic amenities etc has resulted in tremendous growth of city’s realty sector in the Central Business District (CBD) as well as upcoming suburban areas”.

The commercial capital values have seen an average appreciation of 10-20 per cent across the city whereas the rentals have noted an average increase of 30-50 per cent in past one year, says Arun Pratap from Vaibhav Infra. He further added, that the projects such as construction of new international airport at Shamshabad, the 8-lane Outer Ring Road on Hyderabad’s periphery and better connectivity by efficient MMTS rail have improved connectivity to all parts of the city and to the neighbourhood cities as well as with the country manifolds. This has given an extra edge to the industrialist, developers and investors to make investment in the city.

The growing infrastructure has not only prompted IT companies to expand their business but also promoted other local secondary and tertiary industries to develop and henceforth increase demand in the commercial sector added Kumar Naidu from Global Properties. Areas such as Jubilee Hills, Banjara Hills, Begumpet, Panjagutta, Ameerpet have witnessed a 15-20 per cent escalation in values during past one year owing to increase in demand and connectivity, he added.

According to Vijay Kumar Dambula property advisor from Srigdha Projects and Constructions, “the growth of Special Economic Zones (SEZs) and project by big IT giants such as CISCO, L & T etc in the city have already boosted the property market by creating job opportunities and demand for premium commercial office space”.
Other projects such as the construction of 159-km Outer Ring Road (ORR) has resulted in emergence of new growth corridor known as Sagar and Vijayawada Highway. This has also uplifted commercial property sector in the upcoming areas such as  Tellapur, Maheswaram, Miyapur etc. as told by Mishra.

The Hyderabad Urban Development Authority (HUDA) is taking initiatives to further enhance the connectivity by linking the inter-state highways and roads with the ORR thus, making it an important social infrastructure for the augmentation of commercial sector.

Nidhi Vashisth, MagicBricks.com Bureau

Market conditions favour home buyers in Hyderabad

Hyderabad

The Hyderabad residential property market witnessed relatively lower sales this quarter, but the market is slated to pick up in the next few months.

“This being the first quarter, the sales in the city were slower, 9 percent against the last quarter’s 12 percent, but with the recent cuts by the RBI, the market should pickup. As of now, the developers are wary of launching big projects because of the GO 45, but once that is revised there will be new launches and more options for people to buy,” says Trivita Roy, Manager, Research and REIC, Jones Lang LaSalle.

A number of factors have recently eased the hardships faced by homebuyers earlier. Any delay on the part of end users in acquiring a home will only be at a higher cost now. However, times are changing and there are several factors that will reduce the issues faced earlier while investing in a home. Developers in they city also foresee an upturn in sales due to the favourable market. “Various factors affect a prospective buyer’s mind. everyone is closing financial transactions for the year and expecting a post-appraisal hike. Lower repo rates will take a few months to reflect in sales. But we can definitely say that in another month there will be more buyers looking to invest in property,” says G Sreekesh, Executive, Sales, Aparna Constructions

The Reserve Bank of India (RBI) has cut the repo rate by 50 basis percentage points which will make home loans cheaper. Housing finance companies and banks are expected to reduce the lending rates shortly. One bank has already offered to re-price its existing home loan at a lower interest rate. Borrowers can switch to the prevailing floating rate that is at a discount to the prime lending rate. The borrower has to pay a one-time ‘switchover fee’ of one percent of the outstanding loan. Some banks have slashed their lending rates by 75-175 basis percentage points. The rate cuts will be applicable to new borrowers.

With the land, input and labour costs soaring, home prices are inching upwards across all micro-markets. According to industry sources, taking into account price increases of the four key construction components – steel, cement, labour and bricks – there is an 18 percent gross rise in construction costs over the last two years.

Moreover, new projects, improved connectivity levels and infrastructure development will only up the soaring land costs. All this implies that any delay on the part of endusers to enter the market would only be at a higher cost later. Also, the increase in the service tax rate from 10.3 percent to 12.36 percent will increase the costs of production for developers.

A significant trend is the availability of built units in select locations.The timing is also appropriate for those keen to invest in the affordable housing category as the lending norms and fiscal sops extended in the Union Budget for 2012-13 provide ample scope for end-users to strike a bargain deal. External commercial borrowings (ECBs) have been allowed for low-cost housing. The developers will be able to lower their interest costs now as there is a significant difference in the interest rates between here and other countries.

Further, the extension of the one percent interest subvention scheme for home loans up to Rs 15 lakhs for affordable housing continues for another year which will benefit homebuyers in the unit prices up to Rs 25 lakhs. The National Housing Bank has been allowed to raise Rs 5,000 crores through tax-free bonds which provides refinance to housing finance companies.

In order to encourage NRIs to invest in residential property, some developers have earmarked property management divisions within the entity to take of care of properties during their absence in India.

Source: Times Property, The Times of India, Hyderabad

Multiplex now at Madhapur! 6 Screen Multiplex to come up near Inorbit Mall

The Madhapur IT hub will soon be a favourite of avid movie buffs too thanks to a multiplex coming up at the Inorbit mall on the Hi-Tec City-Durgam Cheruvu stretchshortly.The multiplex will have six screens with a crowd capacity of about 1,000. In the final stage of obtaining permission,however,the multiplex is evoking mixed reactions from the employees and the residents of the area.

While one of the major concerns of the employees seem to be traffic problem and security related issues,the rest are only too happy to have a major recreation centre in their backyard.Expressing concern that the opening of multiplex will only worsen the traffic situation,V Srinivas Prasad,secretary,Cyberabad Security Council,said As of now,the crowd turn out at the mall is limited and mostly on the weekends.But with multiplex in place,traffic may go for toss in the area.Since there were instances of traffic jams on this stretch earlier,we had asked for a traffic police outpost.

According to him,the huge crowds at the mulitiplex may pose challenge to the security in the area as it would be impossible to screen or frisk all those entering the zone.The council,which looks after the security requirements of 91 corporate companies,including the IT biggies,was instrumental in setting up five check points and 17 interconnected surveillance cameras in the area and is planning to have five more check points and about 25 more surveillance cameras in the coming few months.

However,those residing in the nearby area are more than happy with the venture.Until now,we have no other option but to travel long distances to watch a movie.This multiplex will only increase the importance of the area and makes it more preferable for residing said B Rohit,a software professional and a resident of Madhapur.

Hyderabad Airport Road. One more expressway ramp to be ready by June-end

One more intermediate ramp offering connectivity for those intending to join the PVNR Elevated Expressway in between will be ready by the end of June.

The 11.8 km long expressway connecting the city with the international airport at Shamshabad, has already been equipped with three connections, up-ramps at Lakshminagar and Aramgarh and a down-ramp at Upparpally. Of a total of six, these three ramps were made available for traffic last year.

Now, work has been progressing on the up-ramp at Upparpally and heading for the final phase. Hyderabad Metropolitan Development Authority (HMDA) officials said it would be ready in all aspects by the next month end.

“With little finishing touches, we expect to open it for traffic around first or second week of July,” said an official.

Though PVNR Elevated Expressway was inaugurated in October 2009, work on the three sets of exit and entry ramps planned for it has been getting delayed due to various reasons.

Unresolved issues

Even now, two more connections to the expressway remain mired in issues. The acquisition of land parcel pertaining to the Defence Ministry has not been resolved yet at Lakshminagar which not only has been affecting the ramp work but also that of the service road to be done by the Greater Hyderabad Municipal Corporation (GHMC).

“GHMC is to pursue the matter on acquisition of land and we are waiting for it to be solved. Still, where ever clear space is available for the ramp, we are taking up the work,” he said.

Relocation of a place of worship here too delayed commencement of work.

For the down-ramp at Aramgarh, the slow pace of pipelines shifting by Hyderabad Metropolitan Water Supply & Sewerage Board (HMWSSB) delayed the progress.

The water board was initially provided with Rs.3.70 crore and later provided with an additional Rs.1.30 crore by the HMDA.

“The new lines have been laid and the HMWSSB has to connect it to the mainline and pull out the old connections. Once they finish it, we can commence work,” added the official.

Hyderabad Metro News. L&T to commission first phase of Hyderabad Metro Rail by 2014

India''s largest engineering and construction company by revenues Larsen & Toubro, which is implementing the country''s largest elevated metro rail project in Hyderabad, said that the first phase of the metro rail project will be commissioned by 2014.

The project consists of three corridors covering a total distance of 71.16 kilometres to be implemented in four phases. Corridor-I will extend from Nagole to Shilparamam (27.51 km - 23 stations), corridor-II from Miyapur to L.B. Nagar spread over 28.87 km with 27 stations, while corridor-II will be from JBS to Falaknuma stretch over 14.78 km with 23 stations.

Mr VB Gadgil CE & MD of L&T Metro Rail said the first phase includes the stretch from Nagole to Mettuguda and from Miyapur to Ameerpet. He said that "Work will simultaneously go on in the other phases as well. We will finalize vendors for rolling stock, telecom, signalling systems by June.”


The executive said that four firms have bid for supplying the rolling stock including the Canadian aircraft and railway coach maker Bombardier, a consortium led by Hyundai and BEML and a Chinese and Spanish company.

For the INR 16,336 crore of project, the company has so far invested INR 3,400 crore as equity. The viability gap funding for the project provided by the government is INR 1,458 crore and the banks have lent the company INR 11, 478 crore as term loans for the project.

Hyderabad Metro Rail project is being implemented with the Andhra Pradesh government on public private partnership mode under the design, build, finance operate and transfer format. The concession agreement was signed by with the AP government in September 2010.

Rents firm up in Hyderabad by 10 to 20% in Last Quarter. Real Estate Market Up

The rental values of both residential and commercial properties in Hyderabad have gone up by 10 to 20 per cent in the last quarter.

This varies depending upon the location. In some areas, the hike is steeper going up by about 20 per cent and in others it is about 10 per cent, according to Mr D. Sreedhar Reddy, President of National Association of Realtors India.

Interaction with a cross section of real estate players and recent reports of consultancy firms show that the rentals are firming up just as the capital values. The firming up of prices reflects the market mood which has turned positive after a few quarters of subdued sentiment against the backdrop of a slowdown and agitation for statehood for Telangana.

Property consultant Makaan.com has come up with a report that states it''s better to rent a property rather than buying one in cities like Mumbai, Delhi and Ahmedabad. But that''s not the case for Hyderabad where properties are cheaper.

Basing its assessment on rapid urbanisation and a recovering market, the report observes that the inhabitants are confused on whether to stay on rent or spend the rent money as EMI to buy a home.

There is a general feeling that at times staying on rent is economical. However, an individual is drawn by the sentiments of owning a home. High property prices, increasing home loan rates leading to high monthly instalment and innumerable projects, though, leave him puzzled.

In the absence of any robust tool to arrive at any decision, people go by their gut feeling, or with the guidance of a close relative, a friend or an experienced acquaintance.

Ideal for buying

Hyderabad throws up an interesting pattern for Makaan.com. Compared with other metros, buying a property is cheaper here, according to the portal. . The report states that Hyderabad has become buyer-friendly. The recommendation is mainly based on lower price appreciation compared with rental appreciation.

Cushman & Wakefield in its latest report and advisory states that rents have gone up from 9 per cent to 25 per cent. Select locations in Hyderabad, such as A.S. Rao Nagar and Punjagutta, have witnessed incremental growth of 20 per cent over the previous quarter. Rents in A.S. Rao Nagar have grown the highest at 26.7 per cent.

Persistent leasing enquiries and scarcity of suitable space have pushed rents up 9-20 per cent across the city''s prime high streets and mall locations. Retail demand for space has been high on account of consumer demand and affordable rents as compared with other cities.

Mr Reddy said that the demand showed mixed patterns depending upon the location. In the areas in and around the IT hub of Hyderabad, there is increasing demand for gated properties as opposed to standalone properties. The rents are higher by between 15 and 20 per cent in gated-community projects.

The rents for a three-bedroom property of 1,500 sq. ft to 3,000 sq. ft range from Rs 15,000 to Rs 45,000 a month. This is generally more when it comes to gated-community ventures.

Referring to commercial property leasing, Mr Reddy said that the rates, which came down in 2008, have seen gradual increase in the past few quarters. The rise was sustained during the last year and there are signs of further firming up.

In IT parks and special economic zones, rents have gone up from Rs 30 a sq. ft to Rs 37-38 a sq. ft. For city commercial properties, while demand is good for lower floors, there continues to be mixed response depending upon the location and convenience of use.

Indiaproperties.com, real estate portal, in a study highlighted how there is increasing preference for properties which are smaller, say, 1,000 sq. ft, versus 1,500 sq. ft earlier. This is mainly because it drastically reduces the cost of the project and also payout for rentals.

Higher rents in the core city area has raised concern among some. Travelling to office and business hubs such as Hitec City is a problem. Therefore, people are preferring properties in the peripheral areas of the city that are well-connected. This has two positives: lower rents and a shorter commute.

In the core city area, closer to schools and hospitals, rents remain high. But people faced with traffic snarls are looking at other options.

Consultancy firm Jones Lang LaSalle in its report on rent for May on Hyderabad has stated that the residential demand remained moderate and the rents stable during March, and a few projects that are at final stages of completion continued to increase prices. The supply crunch in Hitec City and Gachibowli has begun to push up rents and capital value.

Property Registration Charges to be increased from August.

Govt. is set to increase property taxes. Also the basic market value of properties also will be revised upwards. This is likely to result in large jump in overall registration costs.

The state government has given the revenue department a target of Rs 5,300 crore, which is 25 per cent more than the previous year’s revenue. Hence, the property prices are set for a 10-15 per cent hike. The government, which had increased the market values in 2010, is keen on repeating the same this year as it will be difficult to take up the exercise next year since elections would be fast approaching.

“At present, the average basic value is below 50 per cent of the actual market value; this gap will be reduced by 10 per cent,” an official said. The spurt in real estate activity in recent months has also added strength to the department’s plans to improve its revenues. In April alone, revenue from registration transactions increased by 25 per cent over the corresponding period last year.

The spurt has been seen in all urban areas, in particular the emerging areas of Cyberabad and Kakinada. Significantly, gated community projects, which were badly hit due to recession, showed signs of recovery with sub-registrar offices receiving many applications for development agreements for villas. “The values of apartments in RR district went up to Rs 4,000 per sq. ft and this increased our reven-ues,” a sub-registrar said.