Why are Hyderabad real estate players happy?

Aliens Group, Lanco, Lodha etc are coming up with BIG projects. Also, recently heard Philippines-based real estate firm Ayala Corporation is foraying into Hyderabad's real estate. High profile firms are venturing again to buy stakes in a real estate projects at Hyderabad. Projects in Hyderabad involve development of office, residential, retail and hospitality space.

Investors and real estate companies are making the most of the development activities happening in Hyderabad. However, the winner in this situation will be the property seeker since he will have a plethora of options, in varied budgets, to choose from! Hyderabad's real estate segment has been in limelight ever since the launch of new state of the art airport at Shamshabad in 2008. The city's real estate vistas have multiplied and property developers and real estate gaints and home seekers are making the most of this boom.

Hyderabad is still working its infrastructure profile to attract more and more MNCs and corporate biggies to the city. Many national players and real estate developers have lined up investments for Hyderabad. In the last couple of months, in spite of the rough weather, at least 20 new infrastructure and property projects have been launched in and around the city.

Infrastructure firms have announced big investments for their realty business. The HUDA is developing eight-lane access-controlled expressway in the city. This proposed expressway is a part if the Outer Ring Road (ORR) project and would be taken up in three phases.

Festive season for the real estate market

The upward swing for Hyderabad real estate market has begun. Not only have the sales of various companies picked up, but the prices of residential property too have increased 5-15 % in the last month. For example, Aliens Group reportedly has seen a steep increase of 20% in during the last month. With a long festive season ahead that started with Dushera, realty punts believe that the property market will witness heightened activity.

Historically, it is observed that the the festive season (September to December) is a buying period, with a large part of overall sales of the year happening during this time. Some developers like Aliens and Aparna are expecting to see as much as 30 % of the yearly sales taking place during the festive season. This inspite of residential prices increasing by 5-10 % from the bottom that it hit the other half of the year. If the developers continue to keep the prices without a steep increase then there is expected to be a renewed demand and interest in the customers.

Also, given that this is the time NRI come home on a holiday, major sales are expected to happen during this period. 2008-2009 has been a taxing period for the real estate market in Hyderbad and the initial signs of recovery are evident in the market. As the economy has stabilised and is back on the growth trajectory, there is a revived interest in buying homes by end users and this increase in confidence, better economy, favourable borrowing conditions, rationalised capital values amongst others which is promoting rising sales across India..

Showering offers!

Real estate market health is vital for the economy on the whole. The banks have been reducing interest rates and builders are coming up with special offers and dream houses with clubhouses, swimming pools and everything under sun, above and around it for that matter, to lure customers.

Builders have had a hard time during recession and a desperate measure that can be observed as an upshot of that has been special packages, discounts, plummeting base prices and everything.

Aparna is offering a monthly rental of Rs.15,000 from the date of booking till possession (4 months) has revised its base price and now it comes at Rs.2,799 per sft, Mantri has dropped price, Aliens Group is selling at 2500 per sft, Ashoka gave away santro cars for customers, Indu fortune fields sales guy says "45-50, not more than that", when the quoted price is approx 60 lakhs. The sales guys are so desperate; go meet them in the last week of any month and they will be willing to drop the base prices to abyss! :)

When the customers are still basking in the happiness of the ashadam sale of flats, there is the festive offer season of Dushera. Don't worry if you are away for a vacation. There will soon be a magazine or two celebrating their anniversary and the builders are sure to have a tie up! :))

Gachibowli-The next Hitech City

Most builders mentioned in the previous posts, Aliens Group, Aparna, Mantri etc have their major projects coming up in and around Gachibowli.Surrounded by major IT and business developments, this area is all set for a growth spurt.

Owing to its proximity to major forthcoming developments and to the existing IT and business centre at Hitech city, and great connectivity to Outer Ring Road make Gachibowli an attractive destination for investment and home buying. Investing in a growing community can be very profitable in terms of residence, resale and rentals.

Office space running into millions of sqft are being built, at the vibrant city suburb of Gachibowli. The flag bearer, Hitec City 5-10 Km from Gachibowli has in the last 5 years seen peaking of building spree and has reached saturation. The movement has now started at Gachibowli. Gachibowli already hosts campuses of Microsoft, Infosys, Wipro, Polaris, Kanbay, Templeton, UBS etc. Scores of office complexes and residential townships are under construction.

To take care of the needs of the rich clientele that will make their base in and around Gachibowli, several large infrastructure and construction firms are rolling in world class residential townships. Commercial projects, malls, super Markets and multiplexes are now being built by companies like Aliens, IVRCL, DLF and LANCO. The sales numbers of these number speaks for the fact that Gachibowli is the next Madhapur-Hitech city. This new investment destination has already attracted constructors who are in the process of shaping Technocity, Tellapur railway station, Express Highway, Aliens Space Station 1, Wave rock, and many other residential and commercial developments in the same vicinity.

The Areas of Gopanpalli, Nallagadla, Tellapur beside Gachibowli are peaking in prices and are hot investment destinations and have been declared by the Urban Development Agency of the city (HUDA) as High-rise zones. HUDA's careful planning and execution in this regard are praise worthy.

Gachibowli is one place to watch out for!

More builders in Hyderabad

The following can be considered as first impressions on each of these builders and projects Hyderabad.
Each of these builders will be talked about in detail in the following posts.

Bharat Iconia:

Pluses:
• Closer to big roads and existing infrastructure
• Fairly priced
Minuses:
• Only the first phase will be completed by 2011 (the whole township will take much longer)
• With the Lehman debacle, the construction work has almost stopped/ is dead slow
DLF:

Pluses:
• Brand name
• Aggressive pre-launch pricing offer
Minuses:
• Very bad location
• Poor progress in construction

Indu Fortune Fields:

Pluses:
• Proximity to Hitech City
Minuses:
• Bottle neck kuchcha road approach
• High booking amount
Indu City

Pluses:
• Permissions become easy as the CM’s son supposedly has a big share in the project
• Fairly priced
Minuses:
• Project construction hold by the High Court of Andhra Pradesh
• Lots of negative publicity
PBEL

Pluses:
• Impressive model flat
• Close to ORR APPA junction
Minuses:
• Too high a price for their location
• Only a part of their project finishes by Dec 2010, the whole project will be completed only after 2013
We shall look into other aspects of these projects in detail. Please share your opinions about these projects too.

Real Estate Players in Hyderabad

With so many frontline developers throwing up such a plethora of choices for the customer and investor, it becomes a mind boggling exercise to analyze and choose from among the evoked set of choices. I’m planning for an investment; I have been there, done that! As a regular investor in real estate, I consider it a moral obligation to share my findings with all of you. Couched in simple and straightforward terms, this blog will showcase and update its readers on the Real Estate scene in Hyderabad, real estate players, their projects and updates.This being the introductory post, I shall introduce to my readers the Real Estate Players in Hyderabad and their ongoing projects.
The following can be considered as first impressions on each of these builders and projects.
Each of these builders will be talked about in detail in the following posts.
Ashoka :

Pluses:

• Excellent location, 75% open area (or so they say)

Minuses:

• Small target group (budget housing), nothing extraordinary in terms of features

Ramky:

Pluses:

• Good location
• Duplex layout

Minuses:

• Out of bounds base price.
• Malaysian township, their earlier project, doesn’t score high on reviews.

Aliens Group:

Pluses:

• Fantastic features
• Elite, their earlier project has excellent reviews in terms of construction and plan

Minuses:

• Completion date sometime in 2011Sluggish construction process

Mantri:

Pluses:

• Big name, awards et al

Minuses:

• Run of the mill featuresNo flexibility on base price at all

Aparna:

Pluses:

• Impressive model flat
• Discount on base price and Rental offer

Minuses:

• Only one type of flat 1800sftNot great in terms of quality of construction

I have mentioned about the sites and projects that I have been to. The other projects will be reported about once I visit them this week.