Hyderabad Real Estate News

Hyderabad Office Real Estate Slump June 2008

2008-07-27T07:43:00.000-07:00

K P Singh: World's richest realty developer

2007-11-22T19:16:00.000-08:00

India's booming real estate sector has more than doubled the number of billionaires from this space in just 12 months, with DLF's Kushal Pal Singh emerging "the world's richest real estate developer."Among 54 Indian billionaires identified by Forbes magazine, there are seven real estate developers with a net worth of over a billion dollar each.A year ago, there were just three billionaires from this sector - K P Singh, Ramesh Chandra and Rajan Raheja, who have now been joined by Rakesh Wadhawan of newly listed HDIL, Niranjan Hiranandani of London-listed Hirco, Parsvnath Developers' [Get Quote] Pradeep Jain and Omaxe's Rohtas Goel.Singh, the wealthiest in this space, has been ranked as the fourth richest Indian with a net worth of $35 billion, according to 'Forbes' India's 40 Rich List' for 2007."Kushal Pal Singh is fourth on the 2007 India Rich List with a net worth of 35 billion dollars, making him the world's richest real estate developer," Forbes said.Singh's wealth appreciated over 250 per cent after his company, DLF, went public in June this year and the stock has surged 60 per cent since then, it added.Unitech's Ramesh Chandra ranks 8th with a net worth of $11.6 billion, followed by Wadhawan at the 26th spot with a wealth of $2.35 billion.Raheja and Hiranandani, real estate developers from the financial capital of India - Mumbai, rank 30th and 31st with a net worth of $2.15 billion and $2.1 billion respectively. Although there are 54 billionaires in India according to Forbes, 14 of them could not make the cut for the 'India's 40 Richest' list which required a minimum wealth of $1.6 billion.Pradeep Jain of Parsvnath Developers ranks 46th with $1.25 billion net worth, while Rohtas Goel of Omaxe is positioned at 48th place with $1.2 billion. Parsvnath and Omaxe are based in India's capital New Delhi.Of the seven real estate companies that have entered the Forbes' list, DLF, Omaxe and HDIL got listed in the stock exchanges this year, while Parsvnath entered the stock market last year.

Source: Rediff

Hyderabad Banjara hills tops the list

2007-11-22T14:33:00.001-08:00

India ranks 16th in the most expensive highstreets across the world and the South Indian cities, Hyderabad, Chennai and Bangalore, emerged as the top retail locations to have witnessed highest highstreet rental growth across India according to the Cushman & Wakefield India Retail survey.
Banjara Hills and Jubilee Hills, though traditional markets, are preferred by the new age retailers with the highest annual rent rise in the country. These markets are prime residential locations.Banjara Hills in Hyderabad was the highest gainer in India with an annual rental growth of 114% appreciation over last year. Nugambakkam and Khader Nawas Khan Road in Chennai also witnessed high rental growth of 106% making it the second highest in India.Sardar Patel Road and Begumpet in Hyderabad and Koramangala 80 Feet Road in Bangalore were among the highest risers with increase of 100% and 92% respectively.The National Head of Retail, Cushman & Wakefield, Rajneesh Mahajan said in a press release that the economic growth in Southern India has provided a large consumer base with increased spending power. The retailers were enjoying better revenues in these markets not only from the existing retail destinations but also in the suburban locations. As the store revenues became comparable to Delhi and Mumbai, the demand for retail real estate would push the prices closer to these two markets.In the C&W annual global report, Main Streets Across the World 2007 (MSATW), Khan Market in India emerged as the 16th most expensive retail highstreet in the world, higher than markets like Moscow (Russia), Beijing (China), Kuala Lumpur (Malaysia), Amsterdam (Netherlands), Toronto (Canada) etc. Khan Market apart from being the most expensive retail destination in India, is also the biggest riser in the ranking of the world's most expensive shopping locations in terms of retail rents, moving up 8 places from last year?s 24th position. New York's Fifth Avenue retained its title as the world's most expensive shopping destination followed by Hong Kong's Causeway Bay and Avenue des Champs Elys饳 in Paris.Retail revolutionMr. Mahajan adds: "Retail is going through a revolution in India, although part of the increase in rents is due to the lack of high-quality space in the right location. This is in strong contrast to other emerging markets such as China, where less restrictive legislation has meant more construction of retail outlets and retail chains accounting for a much larger share of total sales"Banjara Hills and Jubilee Hills, though traditional markets, are preferred by the new age retailers with the highest annual rent rise in the country. These markets are prime residential locations and home to the city's HNIs. Furthermore, the demand for space here far supercedes the supply. Begumpet witnessed cent percent increase in rentals over the last year, indicating strong demand dynamics.The exponential growth in residential development in Hitec City, Kukatpally would bring these pockets up on the retailer radar in times to come. With new highstreets emerging in future the prices would surely have a downward curve in the next 18-24 months. Mumbai & Delhi maintain their position as the best markets for retailers across categories and witness consistent demand from retailers due to the double digit growth in revenues achieved across brands within the highstreet markets. Prime high streets such as Khan Market, Greater Kailash, South Extension and CP in Delhi and Linking Road, Kemp Corner in Mumbai provide better revenue for retailers.Source: Property plus / Cushman and Wakefield

Hyderabad Luxury resort opens

2007-11-22T14:32:00.002-08:00

IHHR Hospitality Pvt Ltd, which has a chain of spas, luxury and business hotels, has opened Ista, a Rs 135-crore luxury business property at Gachibowli, which is in the vicinity of Madhapur-Kondapur area ? the home for many high-profile IT and MNC companies."We are the first city resort here. Spread in a sprawling 16.5-acre plot, this would offer a never-seen-before experience for our customers," Mr Jaideep Anand, General Manager, told Business Line."The location too is strategic. It is just 11 kilometres from the upcoming international airport at Shamshabad," he said.The hotel has 167 rooms and nine suites. "Though it offers a wide area for leisure, there will be no obtrusion to privacy as the two areas are distinctly separated," he said.The hospitality group is also planning to open a property in Visakhapatnam in the near future.Source: The Hindu

Inter city 4-lane project cleared

2007-11-22T14:32:00.001-08:00

The Public-Private Partnership Approval Committee at the Centre has cleared the proposal for the Rs 1,300-crore Hyderabad-Vijayawada four-lane project that covers an 181-km stretch.
The project would be completed in 24-30 months and later expanded to a six-lane road.Of the Rs 1,300 crore, Rs 1,170 crore comprises the project cost and Rs 130 crore has been earmarked for land acquisition. This project is likely to be further extended to cover another 63-km stretch between Vijayawada and Machilipatnam.The Union Minister for Urban Development, Dr S. Jaipal Reddy, said that the Cabinet Sub-Committee for Economic Affairs (CCEA) is likely to approve the project within a couple of weeks, thereby paving the way for invitation of bids.The project would be completed in 24-30 months and later expanded to a six-lane road.Therefore, land acquisition to facilitate six-lane road would be taken up concurrently, he said. Addressing a press conference here on Wednesday, Dr Reddy said that the 181-km stretch would link up the 40-km four-lane stretch between Hyderabad and Malkapuram and 54 km between Vijayawada and Nandigama and thereby complete the total stretch of 275 km. The 181-km road stretch will also have six bypass roads at Narketpally, Nakrekal, Akupamula, Kodad, Sheikmohammadpet and Nawabpet. The Ministry for Environment and Forests cleared the project in May 2007 and the Competent Authority for Land Acquisition has been appointed and the process initiated, he said.Since road projects in Andhra Pradesh have not been covered under the Golden Quadrilateral, North-South and East-West Corridors, the State had proposed strengthening several roads and upgrading them.

Institute of Creativity

2007-11-22T14:31:00.002-08:00

The Union Ministry of Science and Technology will set up an institute to foster creativity in science and technology in Hyderabad.
The institute, to be the first of its kind in the country, will be a "global leader, focussed on enhancing the creative quotient in children, entrepreneurs and professionals and enable the application of creative ideas for the industry," the release said.The institute, to be christened Rajiv Gandhi Institute of Creativity, will foster creativity by imparting education, nurturing cutting-edge research, driven by industry and societal requirements. It will also render professional services besides building relationships with prominent institutions and organisations across the world.A decision to set up the institute here was taken at a high-level meeting attended by the Chief Minister, Dr Y.S. Rajasekhara Reddy, and Mr A.S. Rao, Adviser, Department of Scientific and Industrial Research, Ministry of Science and Technology, here on Friday, according to a release.First of its kindThe institute, to be the first of its kind in the country, will be a "global leader, focussed on enhancing the creative quotient in children, entrepreneurs and professionals and enable the application of creative ideas for the industry," the release said.The broad objectives of the institute are to impart education and training, conduct cutting edge research, nurture innovation and render creativity application services.The Creativity Application Services (CAS) to be provided by the institute would cater to the private companies and Government enterprises. In addition, it would have a Research Hub to be driven by industry requirements and other latent needs, it added.Meanwhile, at a review meeting on road connectivity to the new international airport coming up at Shamshabad near here, the Chief Minister had directed the officials to ensure complete road-connectivity to the airport by March 2008. The airport is slated to be inaugurated on March 16, 2008.Source: The Hindu

City of Millionaires

2007-11-22T14:31:00.001-08:00

The spiralling growth in real estate and industry is showing up in the Income-Tax returns in the Hyderabad-I region. There has been a significant increase in the number of rupee millionaires in the city.The number of applications for returns with income of Rs. 10 lakh and above at the end of the first half of the current financial year has increased by 1,199 , from 6,012 to 7,211 compared to the corresponding period last year. The buoyancy is also reflected in terms of growth in the number of assessees that increased by 53,955 deepening the tax base while the number of personal account number (PAN) cards allotted in the A.P. region stood at 35.97 lakh. Against the target of Rs. 11,623 crore, the region already realised Rs. 5,929.44 crore, with a 40 per cent growth over the same period last year.According to Hyderabad-I region Chief Commissioner of Income Tax S. Lahiri, there was a significant rise in the personal income tax that went up to Rs. 2,966 crore against Rs. 1,937 crore of the previous year, marking 53 per cent growth. Corporate tax (28%) and fringe benefit tax (43%) showed impressive growth rates. The department had extended deadline for e-filing of returns belonging to firms up to November 15 and the returns would be accepted "annexure-less" forthwith. It has decided to accept TDS certificates filed by employees of the Government and public sector units without further verification, he said. Source: The Hindu

No Traffic problems, soon?

2007-11-22T14:30:00.003-08:00

People of Twin Cities who are facing hardships, particularly severe traffic snarls and lack of efficient public transportation have to bear with it for another five years, Hyderabad Urban Development Authority (HUDA), Vice- Chairman Jayesh Ranjan said.
We are at least 10 years behind in terms of development and better late than never, we have started in real earnest now and shall cover up for the delay soon, Jayesh Ranjan assured."Miracles don't happen overnight and one has to wait patiently and be prepared to face problems for at least five years as the State Government is taking steps to improve transportation system in the Twin Cities," he said. Speaking on 'HUDA achievements and vision' at a lecture jointly organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) and Builders Forum of Andhra Pradesh. Jayesh Ranjan said that to have an efficient public transportation system and to ease the traffic snarls, projects like Metro Rail Transit System (BRTS), Bus Road Transit System (BRTS), Elevated Expressway, flyovers, Outer Ring Road (ORR) and Radial Roads, among others, are being taken up. Once these projects are completed, they will reduce the traffic problems to a large extent and change the shape of the Twin Cities for the better, he said. We are at least 10 years behind in terms of development and better late than never, we have started in real earnest now and shall cover up for the delay soon, he assured. Developing infrastructure and providing civic amenities is a mammoth task and this cannot be fulfilled by the State Government alone, in this context private sector and other organisations should come forward and extend a helping hand to the government in the larger interest of the city, Jayesh Ranjan said. He listed out the works taken up by HUDA like ORR, construction of flyovers, parks development, lake improvement, restoration of polluted Hussainsagar lake, increasing green cover to 30 percent, among others apart from construction of integrated satellite townships. Source: The New Indian Express

State to sue IT companies

2007-11-22T14:30:00.001-08:00

The euphoria that the city will soon surpass Bangalore as The IT hub of the country appears to be finally wearing off.
The government is now examining legal options to prosecute the companies that had not made full use of the land given to them. Since 1996, about 2,600 acres of land has been gifted to the IT companies across the State and a huge chunk of it is obviously in Hyderabad.The IT Department has woken up to the sobering reality with an embarassing hangover - it has parted with valuable land worth thousands of crores in the belief that the IT companies will set up shop here. But have they? They have apparently not made full use of the land for the purpose intended. In a damage control excercise, the government is now examining legal options to prosecute the companies that had not made full use of the land given to them. Since 1996, about 2,600 acres of land has been gifted to the IT companies across the State and a huge chunk of it is obviously in Hyderabad. The chastened IT Department officials are also engaged in a thorough discussion over safeguards that should be built in the agreements they enter into with companies in the future. This wisdom has dawned on them after they have analysed information collected over the last six months on how the companies are doing vis-a-vis the land allotted to them. The inference from the analysis is that about 40 per cent of the land given to the companies has not been put to full use. Though the officials are happy with most of the companies on the promise of giving preference to youth from AP in employment, in other respects the companies have not done anything they had spoken of at the time of allotment. "It has been a common feature among all the companies - to paint a rosy picture that they will transform AP economy overnight at the time of seeking land. But in practice, they are doing precious little. In some cases, land is not used at all. For 2,600 acres, we should have had by now 30 million square ft of office space. In reality , it is only 2.8 million square ft. The figure is selfexplanatory," one official pointed out. Besides, legal problems have come in the way of genuine companies. "For instance, in Kokapet, we have allotted about 30 acres to 10 companies including Google, Amazon and Patni Computers. With the court staying any development activity in the area, the companies are unable to do anything, the official explained. Source: The New Indian Express

Radial roads to get cash

2007-11-22T14:29:00.001-08:00

The final discussions with the Japanese Bank for International Cooperation (JBIC) appraisal team about loan component for Outer Ring Road Phase II B concluded on Monday.
JBIC also agreed to sanction about Rs. 1,000 crore under sectoral loan category over a period of three years for about 10 radial roads. Four radial roads - one from Indra Reddy statue to Rajendranagar, Rethibowli Junction to APPA, Tippu Junction to Gandipet and the Sagar Road (State Highway) would be taken up for development in 2008.A wrap-up meeting will be held on November 8 between the JBIC team and the Department of Economic Affairs and the Ministry of Urban Development at New Delhi, according to ORR officials here. It would be followed by another meeting with Japanese government representatives in the month of December. Though the JBIC indicated in July that it was willing to fund the ORR Phase II B, a series of meetings has been scheduled to assess the project and its fund requirement, said ORR project director Piyush Kumar. The JBIC in-principle agreed for extending Rs. 2,400 crore of the Rs. 2,900 crore ORR Phase II B and the loan will be released after completion of procedural formalities in February 2008. The work on the 71-km Phase II B would commence in June 2008 and scheduled to be completed by 2009-end. As important as the ORR are the 32 radial roads identified by the HUDA including State and National Highways for development as four- or six-lane roads to help commuters access the ORR from core city. Significantly, the JBIC also agreed to sanction about Rs. 1,000 crore under sectoral loan category over a period of three years for about 10 radial roads. Four radial roads - one from Indra Reddy statue to Rajendranagar, Rethibowli Junction to APPA, Tippu Junction to Gandipet and the Sagar Road (State Highway) would be taken up for development in 2008. With the loan component for the entire ORR project tied up, it is expected to be ready by 2010. The 24-km ORR first phase connecting Gachibowli and Shamshabad would be completed in all respects by September 2008 while four-lane connectivity to the International Airport would be in place by March 2008, he informed. The work on the 62-km ORR Phase IIA split into five packages would commence on November 15. It was delayed by a month due to some land acquisition petitions and most of them have been resolved. The Rs. 2,439 crore Phase II A being taken up on annuity model should be ready by July 2009, Mr. Piyush Kumar said.The Rs. 6,000 crore 162-km ORR project is being projected as the major solution for the existing traffic congestion in the city limits which had drastically reduced the driving speed from 17 km /hour in 1981 to 12 km/hr as per 2006 data. Source: The Hindu

Lufthansa will be first

2007-11-22T14:28:00.000-08:00

Official sources told Hindu that as per the current airline scheduling, Lufthansa will be the first airline to land and take off from the new greenfield airport. At the moment, according to existing airline schedules, Air India is expected to be the second airline to use the new airport.
When completed, the airport, that is a public-private partnership project between GMR Infrastructure, Malaysian Airports Holding, Berhad, Airports Authority of India and the Andhra Pradesh State government, will provide world-class facilities and infrastructure.While the opening of the airport is five months away, work is going on at a frantic pace to ensure that all activities come on line smoothly for the transfer of business from the existing airport to the one at Shamshabad. The cost of the first phase of the project that is to be commissioned in March is estimated at Rs 2,478 crore.GMR Hyderabad International Airport Limited (GHIAL), which was formed to design, finance, build, operate and maintain the greenfield airport at Shamshabad, started trial operation programmes in early September this year. It has appointed the Airport Consulting wing of Munich Airport International for handling the Operational Readiness and Airport Transfer process, more commonly referred to as ORAT. As per the agreement that the promoters have signed with the Government the existing airport in Hyderabad will close down its operations when the new airport becomes operational.For Munich Airport International, that was responsible for the shifting of business from the old Bangkok airport to the new Suvarnabhumi airport in Thailand, as well as to the new airport in Kuala Lumpur, the new Terminal 3 in Singapore and the soon to be operational Terminal 5 in London Heathrow, the task at Hyderabad is nothing new.ORAT tasks"The primary task of the ORAT team is to ensure smooth and seamless start of airport operations that include trial operations, operational readiness and airport transfer. For this they are using Facilities, Information, Systems and Human Resources concept, more commonly referred to as FISH," a senior GMR official said.The objectives of ORAT include having a coordinated approach to prepare all airport stakeholders including the airport operators, airlines, ground handlers, cargo agents and various government agencies, such as Customs, Immigration and the Central Industrial Security Force for the shift of operations to the new airport.Besides, it also has to ensure that there is streamlining of procedures, each and every person involved with the airport knowing their roles and responsibilities."At the moment we are moving people into the new airport so that they are familiar with the surroundings and can guide passengers when the airport opens. The trials would run till February 2008 and then move into the Airport Transport mode of logistics support along with some functions of Operational Readiness. The ORAT project is supported by other functions within the airport, such as Project Management, Terminal Operations and the IT department," said a GMR official.To carry out passenger trials at the new airport, the promoters are getting volunteers from, among others, the general public, GHIAL staff, colleges in the city and from the military.City connectivityWhen completed, the airport, that is a public-private partnership project between GMR Infrastructure, Malaysian Airports Holding, Berhad, Airports Authority of India and the Andhra Pradesh State government, will provide world-class facilities and infrastructure. Its single terminal will be equipped with common user terminal equipment, check-in desks and self check-in kiosks.Initially being built to handle 12 million passengers annually and 100,000 metric tonnes of cargo, in the final stage the airport will be able to handle 40 million passengers and 1 million tonnes of cargo annually. The airport proposes that almost 75 per cent of the aircraft parked in the terminal have access to passenger boarding bridges. The promoters also plan to have a 308-room business hotel on the airport campus during the initial stage of construction.In addition, plans are also afoot to have a city check-in facility at Begumpet and Secunderabad railway stations. Besides, an elevated expressway is planned to help passengers reach the city centre, the completion of which will allow passengers to reach the city centre within 30 minutes of leaving the airport.Discussions are also being held with the state government to provide mono-rail and multi-modal transportation systems for travelling to and from the airport, officials said. Source: The Hindu

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More high-rises on the way

2007-11-22T14:27:00.000-08:00

Due to lack of wide approach roads, inadequate open spaces and traffic congestion in the core city builders are making a beeline to construct skyscrapers in the surrounding municipalities.The trend of high-rises seems to be in favour of surrounding municipalities ever since they were merged with the core city to form Greater Hyderabad.Serilingampally municipality tops the list with maximum number of applications received for construction of multi-storey buildings (MSB). Majority of the 40-odd applications received by GHMC for MSBs since September 17 are seeking permission to build high-rises in Serilingampally municipal limits.GHMC chief city planner B. Purushothama Reddy confirmed that builders were opting for surrounding municipalities to construct high-rises. "In core city, 100-feet wide road is mandatory to construct a multi-storey building. Besides, it is not feasible to leave approximately 10-feet setback area around 10-storey building," he added. Builders forum said they viewed Serilingampally and surrounding areas as the future city. Source: The Hindu

Many takers for VUDA proposal

2007-11-22T14:26:00.000-08:00

VISAKHAPATNAM: Over 15 developers responded to the Visakhapatnam Urban Development Authority’s proposal to develop an ultra modern township on 98.64 acres at Dakamarri. VUDA has proposed the township on ‘invest, develop and share’ basis while stipulating that the layout should be developed according to VUDA norms.The Dakamarri land had originally been proposed for auction under its bulk land offerings. But later proposed for development in ‘public-private partnership.’ The proceeds from the process will go towards budgetary support to the State Government. The State Government has set a revenue contribution target of Rs.1,000 crores to VUDA.The Dakamarri land abutting National Highway 43 will be given to the developer who assures the highest revenue, say VUDA sources. If the rate per acre is made along with the commitment for developing the layout, it will be okayed. Alternately, if a proposal comes for sharing of the plotted area and that fetches more money, it also will be considered. Sources say the timeframe for development (of the layout) will be taken into account at the time of considering the expression of interest. Earlier auctions by VUDA in the Madhurawada region fetched it upwards of Rs.5 crores an acre and for a 44.25 acre plot it was Rs.2.14 crores an acre.

Courtesy : The Hindu

Hyderabad, Chennai & Bangalore witness high rental growth: Retail survey

2007-11-22T14:25:00.002-08:00

Bangalore, Nov. 15 Hyderabad, Chennai and Bangalore have witnessed the highest high-street rental growth across India, according to a retail survey by real-estate services firm, Cushman & Wakefield. Banjara Hills in Hyderabad has seen the highest increase in annual rental growth at 114 per cent over last year, while Nugambakkam/Khader Nawas Khan Road in Chennai witnessed rental growth of 106 per cent. SP Road/Begumpet in Hyderabad and Koramangala 80 Feet Road in Bangalore have seen 100 per cent and 92 per cent growth respectively. Mr Rajneesh Mahajan, National Head, Retail, Cushman & Wakefield India, says, “The economic growth in southern India has provided a large consumer base with increased spending power. The retailers are enjoying better revenues in these markets not only from the existing retail destinations but also in the suburban locations. As the store revenues become comparable to Delhi and Mumbai, the demand for retail real estate would push the prices closer to these two markets.” Banjara Hills and Jubilee Hills, though traditional markets, are preferred by new-age retailers; demand for space here far supersedes the supply. Begumpet witnessed cent percent increase in rentals over the last year, indicating strong demand dynamics.On the retail radar The exponential growth in residential development in Hi-tech city would bring these pockets up on the retailer radar in the future. With new high streets emerging in the future, the prices would surely witness a downward curve in the next 18-24 months, the report says.Though Commercial Street and Brigade Road continue to be prime retail locations in Bangalore, improved infrastructure, including parking facilities, has resulted in stronger growth in Indiranagar and Koramangala. Koramangala 80 Feet Road emerged as the only high street in Koramangala where smaller brands have commenced operations. With rents up by 92 per cent year-on-year, the region currently has a host of big brand outlets. Khader Nawaz Khan Road in Chennai has witnessed annual rental appreciation of 106 per cent compared to 20 per cent last year. The region has the presence of brands such as Benetton, B&O, Atmosphere, Wills Life Style, Stanley Boutique, Evoluzione, Subway, Movenpick, Mocha etc. Most preferred markets Mumbai and Delhi remain the best markets for retailers across categories and witness consistent demand from retailers due to the double-digit growth in revenues achieved across brands within the high street markets.Prime high streets such as Khan Market, Greater Kailash, South Extension and Connaught Place in Delhi, and Linking Road and Kemp Corner in Mumbai provide better revenue for retailers. These will continue to be viewed favourably by retailers despite the rapid growth in mall development across the cities.

Courtesy : Business Line

Prajay Engineers ties up $36 mn in FDI

2007-11-22T14:25:00.001-08:00

MUMBAI: Realtor Prajay Engineers Syndicate Ltd said on Thursday its subsidiary, Prajay Holdings, has received commitment for $36 million in foreign direct investment for one of its projects in Hyderabad. The company added in a statement it had already received $5 million as the first instalment.

Courtesy : The Economic Times

Hyderabad HDFC property expo

2007-11-22T14:24:00.000-08:00

Hyderabad, Nov. 15 To assist home-seekers in their property search, HDFC, the housing finance company, is hosting a three-day property exhibition titled ‘Mana Illu’, that will focus on the emerging areas of Madhapur, Gachibowli and Kukatpally. The exhibition will be open from November 16 to 18 at the Sarath Palace in Kondapur. The mega property show will house 30 reputed developers under one roof, exhibiting over 100 projects. Giving details of the exhibition, Ms Renu Sud Karnad, Joint Managing Director, HDFC said, “The exhibition is an attempt to provide home seekers all the services required for property purchase under one roof, so that they can come with their family ,choose a home and tie-up the funds for purchase.” The exhibition will provide the visitors an opportunity to scan through a large number of projects, meet the senior representatives of the developers, freely discuss their property-related queries with them.Projects displayed at the show will include apartments, flats, villas and row houses, not only from Madhapur, Gachibowli and Kukatpally, but also from other parts of the city, which includes Kapra, Alwal, Kompaplly, LB Nagar, Shamshabad, etc, a press release from HDFC said. For those opting for home loans, HDFC counsellors will be present at the venue to assist them with their requirements, be it ‘on the spot’ approval of their loan or offering customised home loan products and repayment options. Other offerings from HDFC include special interest rate and fees, free counselling on legal and technical documentation and Home Loan Insurance etc.

Courtesy : Business Line

Land Bank - Real estate round up - Tirumalgherrys

2007-11-22T14:23:00.000-08:00

Tirumalgherry, in Secunderabad’s cantonment region, is best known for its upmarket defence crowd. Its central location and proximity to Secunderabad railway station has made it popular as a residential area, and it houses some of the best residential localities in the twin cities. Tirumalgherry is also one of the best places to shop in Hyderabad-Secunderabad. It boasts of a number of factory outlets from Levi’s to Nike to Reebok. Software major Satyam Computer Services has one of its largest campuses here, making it a key attraction for people working in the IT company. Residential: Tirumalgherry is close to the Secunderabad railway station and also to the defence quarters. Posh residential colonies such as Vikrampuri, Gunrock and Surya colony are located here. It also has a number of hospitals and schools — adding to its value as a preferred residential location. The capital value for residential property is around Rs 2,300-2,600 per sq ft. Retail: The area is home to most of factory outlets in the city from Reebok, Nike, Levi’s, and to popular eateries such as McDonald’s, KFC and Pizza Den (popular especially among teenagers and working couples). Retail grocery chains such as Trinethra and Food Bazaar are also located in this area. The rentals for retail are at Rs 60-70 per sq ft per month. The capital values for retail stores are as high as Rs 6,500-7,500 per sqft. Commercial: Being the home for most of the factory outlets and also being close to the defence area, Tirumalgherry has attracted a number of commercial investors. As a result, the capital value of commercial property in the region is quoted at Rs 4,00-4,200 per sq ft. The rentals hovers at Rs 32-34 per sq ft.

Courtesy : The Economic Times

VUDA auctions fetch Rs. 356.6 cr

2007-11-22T14:21:00.002-08:00

Auction of plots at Madhurawada conducted by the Visakhapatnam Urban Development Authority (VUDA) on Thursday fetched Rs 356.6 crore. The total extent of plots sold was 73.79 acres. According to a press release, Finishing Touch Developers Pvt Ltd (New Delhi) purchased 19.53 acres at Rs 5.15 crore per acre, which was the highest price realised per acre in the area. Aditya HIDCO, Hyderabad, bought a plot of 28.31 acres at Rs 4.78 crore per acre, another 10 acres at Rs 5.015 crore per acre and a third of 1.25 acre at Rs 10,101 per square metre. Seven Hills Logistics System, Hyderabad, bought 3.5 acres at Rs 4.005 crore per acre, Neptune Developers (Mumbai) 5.90 acres at Rs 4.51 crore per acre and Berggen Real Estate (Mumbai) 5.30 acres at Rs 4.51 crore per acre.

Courtesy : Business Line

Uppal Housing to Invest Rs 1,500 Cr in Hotel properties

2007-11-22T14:21:00.001-08:00

Delhi based Uppal Housing Private Limited will invest a whopping Rs 1500 crore to develop hotel properties in India over the next 2-3 years.The Group is planning to set up five star hotels in Pune, Hyderabad, Bangalore, Goa, and Chennai and has two five-star hotel properties under development in Gurgaon and Chandigarh.The Group may tie up with prominent names in the hospitality sector to manage new properties. It will raise capital through debt, internal accruals and by raising funds from private equity players. If required, the company may garner funds through the IPO route.Uppal will soon develop an exclusive mall to be christened as Centra Mall and luxury apartments called Uppal’s Marble Arch in Chandigarh. These projects will involve the investments of Rs 100 crore and Rs 250 crore respectively.

Courtesy : Indian Realty News

Airport Project to Hit Castor Areas in AP

2007-11-22T14:19:00.000-08:00

The booming real estate of Hyderabad has brought a bad time for the agriculture sector in the city. The new airport project at Shamshabad has hit the castor crop field in Mahboobnagar, which leads in castor area in Andhra Pradesh.Out of the normal area of 1.42 lakh hectares, castor has been in 1.24 lakh ha during the Kharif season, which ended earlier this season.The total castor area in Andhra Pradesh for the year is put at 2.35 lakh ha this year against 2.02 lakh ha last year. The average for last three years is 2.70 lakh ha. The state has acquired some new castor fields in districts like Kurnool; the loss in the traditional areas could not give a push to its national share of 25%.The proposed airport project falls in Rangareddy District. Castor area has already reduced by 30-40% in the past to years here and Nalgonda district. Now, the project will force the farmers to loose the remaining area as well. No farmer will grow castor if they would be getting a whopping Rs 1-2 crore for an acre, says Mr. Rajender Prasad Agarwal, President, AP OIL Millers’ Association.

Courtesy : Indian Realty News

Lodha Group Buys land in Hyderabad for Rs 225 cr

2007-11-22T14:18:00.000-08:00

The Mumbai-based Lodha Group could not keep itself away from the charm of Hyderabad real estate. It has recently acquired 12.9 acres of land for Rs 225.40 crore to develop a high end residential and commercial complex.The plot is located at Eden Square, Kulkatpally Housing Board Colony. Lodha Group bagged the land in an auction organized by the Andhra Pradesh Housing Board.Hyderabad real estate has come of ages and the group wants to tap its potential in the best possible way, says Abhishek Lodha, Director, Lodha Group.The group is also in a process to acquire more land in Hyderabad besides Pune. With over 25 projects under development in and around Mumbai, Lodha Group is now looking forward to other fast flourishing metros in southern and western India.

ICICI Plans $2 Billion for Biggest Indian Real Estate Fund

2007-11-22T14:17:00.000-08:00

ICICI Venture Funds Management Co Ltd, India’s largest venture capital company, is planning to invest a whopping $2 billion for the country’s biggest realty fund, thereby tapping the potential of a burgeoning market.The fund will raise the money in India and abroad. The venture will invest in real estate projects, both commercial and residential, and buy land in 12 largest Indian cities.Indian property market has been making rapid strides and is set to grow to $90 billion by 2015 from $12 billion in 2005. India’s $906 billion economy is likely to grow more than 8.5 percent in the year to March 31, says the data showcased by Moody’s Investors Service in June.ICICI Venture was established in the year 1987 and has a venture with New York based Tishman Speyer Properties LP. ICICI Venture is moving close on heels of HDFC, which raised $800 million in August. Another inspiration for ICICI venture seems to be Sun-Apollo India Real Estate Fund LLC which has got $630 million earlier in 2007.

Courtesy : Indian Realty News

Hyderabad Real Estate and 25 new SEZ's

2007-10-13T19:47:00.000-07:00

Six are to be developed by APIIC and 19 by private parties

Twenty-five more special economic zones (SEZ) in the State involving allotment of 9,250 acres of land near Hyderabad and other urban agglomerations have been formally approved by the State Government. With this, the total number of SEZs in the State will swell to 70, nearly a half of the 154 SEZs (154) already established or in the pipeline in the entire country.
The Centre has already notified 45 SEZs in Andhra Pradesh, covering an extent of 13,665 acres, most of which lie around Hyderabad. It is likely to issue a notification for the 25 new SEZs soon.
Concessional price
In these SEZs, the State government proposes to extend a concessional price for lands besides offering sales tax concession, reduction in registration charges and stamp duty payable for registering the title deeds of the lands, and supply of water and electricity at subsidised rates.
Out of the new SEZs, six are being developed by the A.P. Industrial Infrastructure Corporation. These include four facilities for information technology (IT) and IT-enabled services in Warangal, Kadapa, Chittoor and East Godavari districts, and one each for leather and building products in Nellore and Prakasam districts.
Of the remaining 19, six are to be developed and promoted by private parties including Rahejas, Lahari Infrastructure, Genpact India, Parswanath and Dr. Reddy Labs in the vicinity of Hyderabad while three are going to be set up in the State capital itself by GMR and WIPRO. The other SEZs will come up in different districts.
A senior APIIC official said the new SEZs would provide employment opportunities to about 2 lakh people and attract an investment of Rs. 9,000 crore towards creation of infrastructure alone, barring the funds to be spent on civil construction and machinery erection, if any.
Job potential
On the other hand, the employment potential of the already notified 45 SEZs, some of them ready and others in various stages of progress, has been put at 7.8 lakhs. The investment on infrastructure alone in these SEZs is expected to be more than Rs. 12,000 crores.
SOURCE:The Hindu

Lanco Hills Court Case Update -

2007-10-12T09:18:00.000-07:00

Order on Lanco Hills writ petition for vacation of stay, reserved TOI 11.10.07

The Andhra Pradesh High Court on Wednesday reserved its judgment on a writ appeal filed by Lanco and Emmar properties seeking vacation of a stay order imposed on construction activity in the land purchased at Manikonda village of Ranga Reddy district.After hearing all the concerned in the case for the last several days, the division bench comprising chief justice G S Singhvi and justice C V Nagarjuna Reddy reserved its order. Several petitions were filed in the court saying it is a wakf land but both the government and the companies concerned refuted the contention

GHMC on a demolition drive

2007-10-10T20:23:00.000-07:00

Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) is on a demolition drive against buildings that have been constructed violating building norms.
The top floor of a five-storied building at M.J. Colony in Moulali was demolished on Tuesday.
The drive was initiated against illegal building constructions in Malkajgiri following a PIL filed in the High Court. Authorities had identified over 374 illegal structures in Defence Colony, Sainathpuram, Safilguda, Moulali and Malkajgiri. Authorities maintained that they would demolish over 1,000 apartments in the next few weeks.
At the demolition of the top floor of Khushi Apartments on Tuesday morning, tensed members of the Malkajgiri Flat Owners Association rushed to get stay orders from the High Court. “Though notices were given to the land owners of the apartments, we have filed individual petitions. We never knew that the buildings were not built according to norms. After all, it is our hard-earned money that has gone into purchasing them,” bemoaned Radha Krishnan, a resident of Defence Colony.

Source: The Hindu

Search Tags: Hyderabad HUDA,Hyderabad GHMC, Hyderbad Demolitions, Hyderabad Building Codes

Hyderabad Trade Tower - All Clear

2007-10-10T20:21:00.000-07:00

Decks have been cleared for the 100-floor Trade Tower and Business District project in 76.28 acres at Manchirevula in Ranga Reddy district with the State Government awarding the contract to a consortium led by Anil Ambani's Reliance Energy Ltd (REL).
The first module of project would have the 100-floor trade tower in 30 acres of the allotted site with a minimum of 40 lakh square feet of floor space with plug-'n'-play facilities and it would be completed within four years.The cost of the project, as quoted by REL, is pegged at Rs. 6,288 crore.The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in its letter of award (LoA) issued in the name of J.P. Chalasani, Director of REL, on Saturday last said the consortium was required to design, develop, finance, construct, market, operate and maintain the project with international standards.A special purpose vehicle (SPV) would be formed jointly by the consortium and APIIC. Chairman and Managing Director of the corporation B.P. Acharya said on Monday that the project would be completed in three modules. The first module would have the 100-floor trade tower in 30 acres of the allotted site with a minimum of 40 lakh square feet of floor space with plug-'n'-play facilities and it would be completed within four years. The second module would comprise developing the first phase of the business district in 30 acres of land, which should be completed in seven years. Development of phase II of the business district in the remaining 16.28 acres would form part of the third module. While 66 per cent of stake in the SPV would be held by REL, Sobha Developers would hold 23 per cent and APIIC 11 per cent. The corporation could enhance its stake to 26 per cent by choice. The land price fixed for the project was Rs. 501.16 crore at the rate of Rs. 6.57 crore per acre for the entire extent of 76.28 acres. A detailed project report (DPR) would have to be submitted by REL within 45 days of awarding LoA. The corporation laid numerous conditions, including its right to replace the developers, while awarding the project.

Source: The Hindu

Search Tags: Hyderabad Trade Tower, Hyderabad Real Estate New Developments

Four Seasons sets sight on Goa and Hyderabad

2007-10-09T11:23:00.000-07:00

In Delhi, where the company has signed a letter of intent for a property being set up by real estate major DLF, Four Seasons is not picking up any equity stake though it is following a business model in India of investing in projects as circumstances dictate — typically, on a minority basis.
Elizabeth Pizzinato, vice-president, public relations, told DNA Money through email: “There are many opportunities for growth in India and we are open to looking at cities and destinations where it would make sense for our brand to have a presence. That would include places such as Goa and Hyderabad.”
Overall, Four Seasons is looking at about six hotels in India. The first Four Seasons hotel, coming up at Worli in Mumbai is being developed by Magus Estate & Hotels, part of the Jatia Group.
Of the $90 million investment in this property, Four Seasons is learnt to be investing about $7.5 million. The Jatia Group will hold about 74% in this project.
Four Seasons’ investment in the Mumbai hotel is consistent with its practice around the world of making only minor capital investment in its hotels.
The hospitality chain that manages 74 luxury hotels across the world is part-owned by billionaires such as Bill Gates, Saudi prince Alwaleed bin Talal and its chairman and CEO, Isadore Sharp.
Sharp and his family own a significant share in it and is said to be involved in the chain’s operations and strategy.

Source: DNAIndia.com

Search: Hyderabad New Hotels, India New Hotels

Red Fort Cap to pump in $425 mn on Indian real estate

2007-10-09T11:22:00.000-07:00

Private equity firm Red Fort Capital will invest $ 425 million (about Rs 1,677 crore) this fiscal in the booming Indian real estate market and has tied up with the Prestige Group for a township project in Bangalore.
Red Fort India Real Estate Fund Managing Director Parry Singh said of the $ 425 million earmarked, it has already invested $ 225 million in five projects - one in Chennai and two each in Bangalore and Hyderabad.
Besides these projects, the firm has also tied up with the Prestige Group for a $ 250 million township project in Bangalore.
"The initial investment in the 800 acres mega township will be around $ 180 million, where we will put in $ 80 million and the remaining will be borne by the developer (Prestige)," Singh said.
He said Red Fort Capital (RFC) has not yet decided about the final investment.
The proposed township would feature 1,000 units of low-cost mass housing for Rs 1,100 per sq ft on 25 acre of land, he said.
This would be a mixed-use project, housing both residential and commercial properties, Singh said, adding "the township will constitute about 2,000 residential units in total."
On its Hyderabad project, Singh said RFC has invested Rs 200 crore to purchase land for building middle class housing units.
The company is currently developing the second phase of the Commercial Tech Park in Bangalore. "We are investing 35 million dollar for the second phase in 2.2 million sq ft of land," Singh said.

Source: The Hindu

Search Tags: India Real Estate, India Property and Real Estate Developments, India Buidlers and Developers

Market surge unlikely to push up real estate prices

2007-10-09T11:16:00.000-07:00

HDFC chairman Deepak Parekh has had one of the biggest influences on policy-making in the financial sector for over a decade. The head of the country’s largest housing finance institution has advised the government and regulators on issues such as funding infrastructure, fixing the Unit Trust of India, securities market regulation and many other issues. HDFC, which he headed for over 14 years, has funded over three million homes and provided among the best returns to shareholders. There is a perception that a surge in stock market indices is followed by a rise in property prices. Do you see such a connection? Today, markets are going up with the Sensex rising significantly in the last three months. But the last few months have not seen any increase in real estate prices. Real estate stocks may have gone up but real estate prices have not. We are also underestimating the investment by domestic investors in the stock markets. Domestic investors are buying equities through unit-linked insurance plans, which invest largely in equities. Besides, asset management companies have also a much larger proportion of equity investments. Many domestic high net worth individuals have appointed fund managers to manage their personal investments. Indian public savings are going into the markets through institutional channels such as insurance and asset management, which is a very good thing. Now less money is going into property markets. One reason why there has been a slowdown is because investors are convinced that prices have peaked. Where do you see real estate prices? There has been a slowdown across the country and there has also been softening in a few cities. The speculators — those who buy when the building is coming up and leave when the building is ready — run out of the market. I feel that in the commercial side, and even shopping side, India is building excessively and this supply will hit the market next year. This is happening in cities like Hyderabad, Pune and Chennai. As a result of the investors getting out, sales have slowed down but developers have not reduced prices in any region except a few areas such as Pune, Gurgaon and in Whitefield in Bangalore. In most places, builders are holding on, they are sacrificing sales rather than reducing prices. This is the first phase of reduction in prices. If sales do not happen, builders are not going to stick with completed stock and they will have to sell it. It was widely expected that HDFC would reduce its prime lending rate, given the cut in borrowing costs? We are waiting for a signal from RBI before revising PLR. If it raises CRR to remove liquidity from the system, the interest rate cannot came down. So we have to see what RBI does in its monetary policy before we take a decision. In fact, all banks are waiting for a signal before revising rates. On one hand, inflation is within control, but the rupee is appreciating rapidly because of dollar inflows. These inflows are pushing up money supply as RBI is buying dollars and releasing rupees. Now whether they will take away liquidity by raising CRR we do not know. Do you feel that the appreciating rupee is an issue that needs to be addressed? Our strength in services export is derived from business process outsourcing (BPO) and information technology. Between the two, IT companies have a larger margin than BPO. I would imagine that IT companies on an average have a 20-25% margin while a BPO company would have a 10% margin. At the same time, wages are increasing and rents are going up, which have already brought down margins of BPO companies. The BPO model has to be sustained and it is very necessary that we grow this industry because we have large manpower. We have 60% of our youth below 30 and thousands of youth are coming into the job market. I don’t think we can employ them all in the manufacturing sector. Today, a graduate is getting three job offers as soon as he is out of college. Earlier, a graduate would have to hunt for jobs or become a taxi driver. There has been a lot of interest in reverse mortgage products. Do you plan to introduce a product? There is a lot of hype over the reverse mortgage product. It is a new product but has limited demand. It is very difficult to estimate longevity and what could be the possible shortage of capital. There are also issues of contesting family members who stay in the same property. An easier way would be to make the lender a joint owner of the house. But besides the issue of ownership and heirs, there is interest tax. Even if the client is not paying interest, we have to show it as interest due but not accrued, as well as show it as income and pay tax. I inaugurated an old people’s home in Pune, where 200 apartments were fully sold out. I sent my office people to see if they were interested in a reverse mortgage. We found that we could not get more than two or three people interested. There are lots of such issues and the product is still in its infancy. RBI has come out with a discussion paper on holding companies. What are your thoughts on the structure proposed by the central bank? The Reserve Bank of India has extended the deadline by three weeks and we have recently sent our comments. The central bank has raised some good issues. There are issues of double taxation and regulation of the holding company. In our country, pass through dividend is also taxed. This means that a dividend paid by the operating company will be subject to 17% dividend distribution tax, and the same dividend, when passed on to the shareholders of the holding company, will get taxed again. The other issue is if the holding company has no other activity, how will it fund investments in an insurance subsidiary. Raising capital will also be difficult as the income is only a dividend income. But the global practice is in line with RBI’s recent circular. Have you finalised a partner for your non-life subsidiary? I can’t say we have finalised our non-life partner, but we will announce it shortly. We have to go to our board and inform the stock exchange. We are in the final stages. What have you learnt from your earlier joint venture with Chubb? We think it should be a joint venture and there should be a joint responsibility on the management. Secondly, only doing personal lines will not give us growth, we have to undertake large commercial risks as well. If you do not have the appetite, take reinsurance. We were the smallest company but auto was a large portion of our business. We did not have high growth because we were not there on commercial lines.

Source: Economic Times

Search Tags: Hyderbad Property Rates, Hyderabad Real Estate Price Drop, Hyderbad Real Estate Market

Shamshabad, Kokapet top corridors

2007-10-09T11:13:00.000-07:00

Two corridors along the city suburbs, Shamshabad and Kokapet, figure among country's top 17 new corridors that have emerged as strong investment destinations for investors.
These corridors have been rated according to three parameters of sustainability, momentum and economic environment, on the basis of a multi variable analysis.The latest Cushman & Wakefield ? Global Real Estate Institute (GRI) India Real Estate Investment Report 2007 - 'India Gaining Momentum' released recently has listed these two as hot destinations for investors with different risk appetites. As country enters the next phase of real estate growth, the exploration of suburban and peripheral developments of major cities as cost saving and risk diversification measures is emerging as a vital initiator for analysing the potential investment opportunity within these emerging corridors.The other destinations listed as reflecting high investment potential in the report include Hinjewadi, Manesar GST and Sriperembudur, Devenhalli, Greater Noida, Panvel and Virar, Raharhat Thane, Bidadi (Karnataka), Chakan, Kharadi (Pune), Bantala and Tumkur road.These corridors have been rated according to three parameters of sustainability, momentum and economic environment, on the basis of a multi variable analysis. The grading of the locations depict the scale of opportunities within these emerging corridors which would allow the investors gauge their location preference according to their risk appetite, it says.The ones scoring high on sustainability exemplify the strength of their physical and social infrastructure, real estate development in the adjoining markets and the nature of economic activity present with the broader location.These corridors will have limited exposure to risk and will bring assured returns due to demand dynamics and readiness of infrastructure. Shamshabad here rank high on this parameter, the report points out.Momentum is an indicator of the pace and direction of the developmental activities along the corridor and there will be considerable strength of local and national players planning projects or venturing into these corridors.

Source: The Hindu

Search Tags: Shamsabad , Kokapet, Hyderabad International Airport, Hyderabad Real Estate News and Update, Hyderabad Hitech City

Real estate to touch $90 bn by 2015: Assocham

2007-10-05T13:49:00.000-07:00

Fuelled by the impressive economic growth, the country’s real estate market which is growing at 30 per cent, is likely to touch 90 billion dollar by 2015, a recent report projects. Though the growth of the realty sector came down in recent times, it would touch $90 billion from the current level of $14 billion and would help the economy continue to grow between 9-10 per cent, according to a recent report by industry body, Assocham. “While a $10 billion FDI is expected to flow into the sector by 2008, it might reach $15 billion by 2010,” Assocham President Venugopal N Dhoot said in a statement. The additional requirement of 370 million sq ft of space in urban areas by 2010 by IT, ITeS, financial services and organised retail alone has still made the real estate most lucrative sector, providing returns ranging from 20 to 30 per cent, the report said. Repealing the Urban Land (Ceiling and Regulation) Act 1976, rescind of the Rent Control Act and increasing floor-area-ratio would give further boost to the sector, Dhoot added. According to the chamber report, IT and ITeS, banking and financial services have in particular created a huge demand for office space. IT and ITeS alone is expected to require 150 million sq ft across urban India by 2010, while services are further expected to clock a double-digit growth in the future, keeping the demand of office space robust. As per the report, analysts pegged the total demand for commercial office real estate in Bangalore, Chennai, Delhi-NCR, Mumbai, Pune, Hyderabad and Kolkata alone to be over 25 million sq ft in 2006.

Source: Business Standard

Search Tags: Hyderabad Apartments, Hyderabad Villas, Hyderabad Duplex Houses, Hyderabad Real Estate News, HUDA Hyderabad, Hitech City Hyderabad

In the Middle of it - Update on Hyderabad Real Estate October 2007

2007-10-04T16:51:00.000-07:00

It was a necessity that remained a dream for most. Till some time back, a home to call one's own was an aspiration that a major slice of the middle class fondly nurtured and awaited for the day when the entire family can join for the auspicious 'gruha pravesh'.
Even recent developments that suggested real estate boom either curving down a bit or decelerating, does not seem to cheer this section. There was no way, the pricing which scaled quite high in two years would come down to earlier rates.Owning a home was treated as an achievement of lifetime and a possession one has to ensure before retirement from service by the middle class. However small a dwelling one might own, the landlord was viewed with certain envy by those chasing the home dream.However, the sudden buzz on real estate front about two years back made the middle class view the dream as something that was within achievable reach. For several, the long held aspirations began turning into a reality as dollars and pounds began flowing in the wake of IT boom. While the father on verge of retirement brought back a pay packet of say Rs.10,000 to Rs.12,000, children in their early days of career returned each month-end with a salary that was several times higher than that. And investment in property was seen as the most proper option for the kind of money that kept coming home.While the IT-employed families went for properties at a price that kept scaling high, others were left behind in the race. The chasm widened as the market was taken over by highly priced properties. And one was forced to shell out at least three to four times more for a flat or a plot. And the middle class housing concept started getting more blurred with developers trying to come out with luxury flats even in the remote corners of the city."My salary hardly allows me a home loan of Rs.4 lakhs and with savings that have been made, I cannot afford to pay more than Rs.6 lakhs. Despite my best search, I am unable to locate a builder who has a project with flats in this range," laments G. Radhakrishna Rao, a senior assistant in government service.Employed with a private firm at Balanagar, Sriramulu says he almost gave up the idea of buying a property after scouting the city for a flat costing Rs.9 lakh.For every IT employed family, there are many more that still are dependant on earnings that hardly allow for investments in the bracket of Rs.30 lakhs to Rs.75 lakhs.Earlier the city fringes were where the middle class tried to locate itself, given the low property prices there, but now the suburbs too have raised their price bar so high that the idea of a flat at even say Rs.12 lakh to Rs.15 lakh is getting dismissed with contempt.Even recent developments that suggested real estate boom either curving down a bit or decelerating, does not seem to cheer this section. There was no way, the pricing which scaled quite high in two years would come down to earlier rates, reasons a builder. Even the smallest of the developer has plans to build big and was keen on big returns, it is pointed out.The uncertainty following suggestions on the boom having hit a plateau also ended up deterring the section of middle class which looked at buying property purely as an investment. It is also agreed by most builders that the up-and-down mood swings of home loan rates and lack of response to recent auctions among other factors, had created certain indecision on investing in second or third property.

Source: The Hindu

Search Tags: Hyderabad Real Estate News Update October 2007

Maytas Infra IPO in Rs 320-370 price band

2007-10-04T16:47:00.000-07:00

Maytas Infra, a construction and infrastructure development company, is entering the capital markets with an initial public offering of 8.85 million shares at a price band of Rs 320-370 a share. The company will mobilize Rs 283.20 crore to Rs 327.45 crore at lower and upper end of the price band. The issue will open for subscription on September 27, and will close on October 4, 2007.The issue will constitute 15.04% of the fully diluted post-issue equity share capital of the company. Out of the total equity float, at least 60% of the issue shall be allocated on a proportionate basis to qualified institutional buyers, out of which 5% would be available for allocation on a proportionate basis to mutual funds.Incorporated in 1988, Maytas Infra has adopted an integrated business model with a diversified order book. The company has historically focused on the irrigation, road and bridges, and buildings infrastructure sectors, a press release said.

Courtesy : Business Standard

Search Tags: Maytas Properties, Hyderabad Real Estate

Peninsula buys property in Hyderabad for Rs 90 cr

2007-10-03T22:11:00.000-07:00

MUMBAI: The Ashok Piramal group's real estate arm, Peninsula Land (PLL), has purchased Rallis India's 31 acres of land at Patancheru near Hyderabad for Rs 90 crore. The acquisition, made through PLL subsidiary RR Mega Property Developers, marks the Mumbai-based developer's entry into the southern markets. "Western and southern India are our focused markets now. We are scouting for more land in cities like Bangalore and Chennai," said Rajeev Piramal, executive vice chairman and managing director, Peninsula Land. The land sale is subject to fulfilment of certain conditions, including the satisfactory completion of due diligence by RR Mega Property Developers with respect to the title of the property. Rallis India, a Tata group firm manufacturing agricultural products like pesticides and fertilisers, has put around 150 acres of land in Hyderabad on the block. Out of this, Godrej Properties had purchased 30 acres of land earlier. Besides buying the 30 acres, PLL has signed a right of first refusal (RoFR) agreement with Rallis for the remaining 90 acres. The Hyderabad buy is Peninsula's ninth deal in the past one year. It has concluded three land deals in Pune and another three in Goa. PLL has also made two land acquisitions in Nashik and one in Nagpur. The company has over 36 million sq ft under development. While working on three major residential-cum-commercial projects in Mumbai, the company has broadened its portfolio by entering more specialised projects like SEZs and IT and biotech parks. Recently, PLL had acquired a 72.6% stake in Dawn Mills for over Rs 600 crore and merged the company with itself.

Source: Times of India

Search Tags: Hyderabad Real Estate, Hyderabad Market Transactions, Hyderabad Real Estate Rates

Realty in AP after the dollar slump

2007-10-03T22:08:00.000-07:00

HYDERABAD: Real estate prices have slumped drastically in the last few months and industry analysts point to the changing rupee-dollar parity and stablilisation of salaries in the private sector as the culprits. “Property market in Hyderabad is no more for locals. We see several international players investing in the city’s real estate. All this is for the future. For, now, there is a slump," builders forum president C Shekhar Reddy told ‘TOI’. Reddy attributes the slump to the dollar’s continuous fall against the rupee (with it slipping to below Rs 40 for the first time in a decade) and the plateauing of high-end salaries in the private sector. As a result, realtors are wooing buyers with ads like"Open plots for Rs 3,999 a sq yard. Available on monthly instalments," and"Book a plot today and win a two-night, three-day stay in Singapore". Areas in the outskirts like Maheshwaram, Tukkuguda and Shamshabad, which have been witnessing an unprecedented boom in the last year with the price for an acre touching as much as Rs 1.5 crore, are now in the grip of desperate transactions."Now, there are no takers for as much as Rs 20 lakh an acre in these areas. It is those real estate traders that are getting into a desperate act now. Landlords are not worried since there can never be a depreciation in the price. Even if there is a slump, it’ll catch up again. Holding onto land is like investing in a blue chip company in the stock market," Shekhar Reddy said. According to experts, the real estate market has now gone beyond the reach of the middle classes. The villas and plots for independent houses on the outskirts have gone beyond the affordability of the salaried class and what is for sale now are for the high-end buyers in the form of gated communities and luxury apartments."As the marketing gurus speak, the market has gone beyond the masses — the middle class — making it fit only for the high-income groups. As this is not a volume game, the prices have seen a natural correction," head of a housing finance company said. However, according to bankers, the slump in the last six months is more a cyclical factor than a trend in the market."The first half of a calendar year is normally a dull period for the property market. Going by the previous years’ trend, the second half will be more active with people preferring to buy property during the festival season. Though the future course will be known only after the two festivals in October and November, for now, the prices have reached a plateau," regional head of a housing finance company said. In the housing sector, builders do not see any scope for an upside in the mid-market segment. Houses sold Rs 2,000-2,500 a sft are categorised as mid-market properties."The mid market products may not see any upside in the medium term. But, the luxury properties being sold at over Rs 4,000 sft and luxury independent houses being sold for over Rs 2 crore a house are witnessing some continuous increase," Mahender, Indu Projects’ head of marketing and sales, said.

Source: Times of India

Stay On Lanco Hills

2007-10-03T22:03:00.000-07:00

The Andhra Pradesh High Court on Thursday granted a stay restraining Lanco Hills and Emmar Properties from construction in a 400-acre site located in the Manikonda village near Hyderabad.
The petitioner had alleged that the APIIC allotted these lands without authority and named Emmar Properties, Lanco Hills, Microsoft, Infosys Technologies, Wipro, VJIL and Polaris among beneficiaries.Mr Justice V. Eshwaraiah delivered these interim orders today in a writ petition filed by Mr M.A. Rahman, Member of Legislative Council of Telangana Rashtriya Samithi, who had claimed that the lands belonged to Dargah Hazarat Hussian Shah Vali.The petitioner had claimed that these lands were Wakf property and they were allotted to these companies by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) on the ground that they belonged to the State.The petitioner had alleged that the APIIC allotted these lands without authority and named Emmar Properties, Lanco Hills, Microsoft, Infosys Technologies, Wipro, VJIL and Polaris among beneficiaries.The court granted an interim stay following the petitioner plea seeking the court intervention to restrain Lanco and Emmar from executing their projects. Lanco Hills was planning investment of over $1 billion, including the move to erect a 112 storey residential complex.The State Government and the APIIC had contended that these were Government lands and that after abolition of Jagirs these vested with the Government.The Judge was of the opinion that it is not open for the Government to dispute that said property does not belong to Dargah and referred the matter to a Division Bench which is hearing matters related to these issues.Meanwhile, when contacted, an official spokesperson of Lanco said that they would appeal against the order seeking a stay.

Source: The Hindu