Hyderabad’s real estate market has changed over a period of time. Old, palatial houses are giving way to new, posh, multi-storey apartments. The city is upgrading its infrastructure to accommodate new migrants. City’s new hi-tech airport at Shamshabad has been in the limelight ever since its launch.
Hyderabad was once famous only for its architecture, culture and pearls. Today it is popularly called Cyberabad, owing to remarkable development in the IT-ITES and BPO segment. This comprehensive chart will give a complete idea of the area and its existing trends in the market.
Last Updated: September 2010
LOCALITY Apartment Capital Value (Rs/sq ft)
Jan-Mar’10 (%) Sep’10
Central (18) 0 to 23 1800-8400
East (5) 0 to 19 2500-4400
North (9) 3 to 9 2100-4900
South (2) 0 to 10 2100-4000
West (4) -3 to 30 2900-11000
Secunderabad (6) 0 to 9 1800-4600
PLOT CAPITAL VALUE (Rs/sq yard)
Jan-Mar’10 (%) Sep’10
Central (18) 0 to 3 21000-61000
East (5) 2 to 12 15000-46000
North (9) -4 to 21 12500-61000
South (2) 4 to 8 20500-61000
West (4) -3 to 19 40000-100000
Secunderabad (6) -3 to 6 15500-51000
APARTMENT 2BHK RENTAL VALUE (Rs/month)
Jan-Mar’10 (%) Sep’10
Central (18) -7 to 6 5500-23000
East (5) 0 to 10 6500-12000
North (9) -3 to 14 5500-21000
South (2) 0 to 5 6500-21000
West (4) 0 to 20 7000-26000
Secunderabad (6) 0 to 3 6500-12500
Hyderabad realty prices on the rise again
The city’s realty rates that have been stagnant for over a year now, are finally witnessing an upward shift. In the last few weeks alone, the rates of several apartments across Hyderabad, which had hit rock bottom in 2009-10, have jumped by a decent 10 to 15%, say market sources. The rise is more evident among projects that are either nearing completion or are ready to occupy, they add.
On this list are, PBEL Property Development India Pvt Ltd’s project at APPA junction, Manjeera group’s twin ventures in Kukatpally, Nagarjuna Construction Company’s apartment complex in Gachibowli, Aditya Homes (P) Ltd’s project, `Aditya Sunshine’, in Kondapur, among others. All these ventures, sources say, are now costlier by a minimum of Rs 200 per square feet (sft) with some even charging a neat Rs 400 (per sft) more for their products. The Kondapur venture for instance that was available for Rs 3,200-3,300 per sft until recently is now priced at Rs 3,600 per sft.
“Also, unlike in the past when the rates were negotiable, now they are not,” said real estate consultant B V P Raju of Ghar4u Solutions (P) Ltd attributing this sudden revision of rates to the surge in demand for completed projects in the market, post the long-drawn `T’ turmoil. “Customers no longer want to risk their money by putting it in ventures that are just taking off or are not likely to be ready anytime soon, even if they are available at a cheaper rate. Concerned about the agitations resurfacing and stalling work yet again, buyers are skeptical about the fate of such projects. The rush, therefore, is for the ones that are ready for possession,” he said.
Predictably, Manjeera Trinity’ and `Manjeera Majestic’ that are almost complete have more buyers than other ventures, that are still in their nascent stages, around them. And this, despite their slightly expensive price tag (in comparison to others) of Rs 3,500 per sq ft. But while this emerging trend has city developers heaving a sigh of relief, it has taken some customers by complete surprise as they had hoped that realty rates in Hyderabad would remain low for a longer while, owing to the stalemate over Telangana.
“I recently checked soon to-be-complete apartments in Lingampally, Hafezpet and Miyapur. And to my surprise nothing below Rs 3,000 per sft was available at any of the sites,” said IT executive Shivam Seth adding, “Interestingly, these are the same projects that until six months ago were being sold for as low as Rs 2,500-Rs 2,700 per sft.”
And the prices are only expected to rise further, say market analysts. Apart from the `T’ effect, which has pushed the demand for completed apartments, it is also the government’s inability to resolve the GO 45 (20% of developed area to be reserved for economically backward classes) issue that has led to this, they said. “Builders are not keen on taking up new projects unless the government revises this unfeasible clause. This has created an artificial shortage in the market leading to a marginal price rise. If this situation continues for long, property rates will soon be up by 20% or more,” said C Sekhar Reddy, president, Confederation of Real Estate Developers Association of India, Hyderabad chapter.
Source: The Times of India, Hyderabad
Regulatory Body for Real Estate will lead to Corruption: CREDAI President
Real estate industry body CREDAI on Saturday opposed constitution of a regulatory body for the real estate sector, saying that it would become a “breeding ground for corruption” if implemented. “The proposed regulatory bill will become a breeding ground for corruption (if implemented),” the Confederation of Real Estate Developers Association of India (CREDAI) President Lalit Kumar Jain told reporters here. The Centre has proposed to form a regulatory body through the Real Estate Regulation Bill 2011 which seeks to protect home buyers from fly-by-night developers.
Arguing that the objective of draft regulatory bill was limited to just consumer protection, Jain sought the jurisdiction of the bill be expanded to address other pressing issues like long delay in approval, rising cost of material and labour etc, which hold utmost importance for the sector. “Only controlling one issue (consumer protection by the regulatory bill) is not going to help unless the entire spectrum of the industry is handled by the proposed bill,” he said. CREDAI further questioned the formation of any regulatory body on the ground that there were a number of options and mechanism like the consumer affairs department, the Competition Commission of India redress consumer grievances
NCC Urban Plans Residential & Commercial Projects in South India
NCC Urban Infrastructure Limited, a subsidiary of Hyderabad-based construction major NCC Ltd, is lining up over 10 residential and commercial projects, together with a built-up area of 2.5 million square feet, in Bangalore, Chennai, Hyderabad and Kochi. “While we recently launched six projects in Bangalore, both apartments and villas, which are expected to generate a turnover of Rs 250 crore per year, ventures in Hyderabad, Kochi and Chennai are to be launched in the next two to three months,” said Narayana Raju Alluri, managing director of NCC Urban.
The company had received Rs 150 crore as equity and the remaining as loan from the parent, NCC Limited, to fund acquisition of land for these projects, he added. NCC Urban, which has so far developed over 2 million sq ft of residential and commercial space, currently has a land bank of over 400 acre. The company is in the process of launching a 100-acre integrated township, enveloped with commercial space, in Visakhapatnam, besides a 150-unit apartment venture in Guntur city shortly.
Govt to Make Draft Real Estate Regulation Bill Public
The government will make public the draft Real Estate Regulation and Development Bill, 2011 for comments from stakeholders this week and may subsequently introduce it in the forthcoming winter session of Parliament. Aimed at protecting customers from fly-by-night developers, the draft Bill will seek to bring more transparency in the realty sector.
“We will upload the draft Bill on the Ministry’s website on November 11 for suggestions by public. After considering those suggestions, we are hopeful of introducing the bill during the winter session of Parliament,” Union Housing and Urban Poverty Alleviation Minister Kumari Selja said. While unveiling the new logo and brand identity of Confederation of Real Estate Developers’ Associations of India (CREDAI), she said the draft Bill has taken into account of the concerns raised by the builder community.