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New global corporates enhance Hyderabad’s brand image.


Monthly Archives: February 2016

New global corporates enhance Hyderabad’s brand image.

Property Management Hyderabad

 

Hyderabad’s real estate scenario is all set for a makeover from being a back office hub to one known for world class products and services, erstwhile a reserve of cities like Bangalore. As per Jayesh Ranjan, Telangana IT secretary, “The fact that we have three times better infrastructure at one-third the price was always appreciated, but now the extra support via TASK, the arm of the government that promises talent availability for the latest technologies has made a big difference. We already have more than 25 high end colleges being trained in industry requirements; this has made Hyderabad very attractive for high-end technology offices. Then the T-Hub and its ability to bring in the required corporate support, investments, mentoring and technology eco-system has been a tremendous boost to the start-up eco-system.”

Hence both big corporates and start-ups see the city as a great locale. Industry sources affirm the pro-active and continuous support of the state government, ministers and officers is a big reason for the big shift in outlook.

Apple’s proposed off-shore centre, first one in India, will be housed in Tishman Speyer’s Wave Rock facility at Gachibowli. While officials at Tishman Speyer declined to comment, sources in the know confirmed that the California based IT giant’s new office will be spread on 2,50,000 sq ft at Wave Rock facility, and is expected to begin operations by mid of this year. Additionally, Development Bank of Singapore also plans to lease 50,000 sq ft office space in the same facility, say sources.

With the upcoming entry of Apple Inc, the city’s commercial real estate will align in value to the high-end corporate locating here. As per Cushman and Wakefield’s report titled ‘India Office Snapshot 2015′, Hyderabad’s absorption rate increased approximately by 25 percent from 2014. Shortage of supply brought down vacancy levels to approximately 12 percent in this segment of real estate. Availability of quality office spaces at affordable rates, coupled with political stability have worked in Hyderabad’s favour, states the report.

With the addition of every new company or the existing ones expanding operations, the positive spill-over effect on real estate will be sustained. A point in case is IT major Infosys’ announcement made earlier in January this year, regarding the formal inauguration of its new campus in Pocharam. The Indian IT major’s campus is said to have a maximum seating capacity of 25,000 spread on 447 acres. Industry player say that the impact of companies setting up their offices in Pocharam is already being felt in the area’s residential real estate sector. “Rentals in Singapore Township, near Pocharam have already increased and there is no vacancy there,” says Veera Babu of Cushman and Wakefield, Hyderabad.

Currently Hyderabad’s commercial real estate is more affordable compared with the likes of Delhi, Mumbai, Chennai, Bangalore and Pune. As per a media release by JLL India, Hyderabad’s share of PE Funds in the real estate sector during 2015 stood at 3 percent. Out of the total inflows of Rs19,500 crores in 2015, Mumbai and Delhi received the highest share of 34 percent and 29 percent each, followed by Chennai and Bengaluru, bagging 14 percent and 11 percent of the total inflows. Pune too was ahead of Hyderabad by grabbing 5 percent of the overall share. This is likely to change now, and PR majors are on the lookout for interesting deals that would lead to swift growth in the city. But as is commonly known, the grade A commercial real estate in the city is in short supply at present.

Hyderabad is home to Amazon’s fulfilment centre, Infosys campus, Google’s new campus, and Apple Inc. Commenting on the inflow of PE fund in the country’s real estate sector, Shobhit Agarwal, MD, Capital Markets, JLL India says, “Going forward, investors are expected to remain focused on the top seven cities only [which includes Hyderabad]. In the past few months, Chinese and Japanese investors have shown interest in bringing their long-term money into India. Overall, the stage is set for a superlative show this year.”

Dipal Gala, Times Property, The Times of India, Hyderabad

Narsingi offers properties at affordable prices

Narsingi is fast emerging as one of the preferred real estate destinations in the city. With a major junction of Outer Ring Road (ORR) at Narsingi, the area offers a good deal of real estate advantages. High rise apartments, gated community villas and open plots are available in the area.

Majority of the crowd residing here is employed in the IT and ITeS sectors. Currently Narsingi comes under gram panchayat and falls in Rajendra Nagar mandal of Ranga Reddy district.

Real estate prices in Narsingi could be termed as fairly affordable. One could find a project that quotes a price of Rs2,500 per sq ft. On an average pricing here ranges between Rs3,000 per sq ft to Rs 3,500 per sq ft.

There are some projects in the area boasting of more advanced facilities and are priced even higher. While there are apartments in 2BHK format, many projects have 3BHK format apartments presumably due to comparatively lower real estate prices.

Narsingi also has many projects in gated community villas. The approximate starting price for villas in gated communities is at Rs5,600 and may shoot up to Rs7,200 per sq ft , depending on the amenities and other related factors.

Speaking of open plots, Narsingi does have plots on sale. The price range is between Rs 18,000 per sq yard to Rs 20,000 per sq yard. One could easi ly find an apartment or a villa for rent in Narsingi. The monthly rental for a 2BHK apartment in a gated community will be approximately Rs15,000 per month. A 3BHK apartment will bear a rental tag of anywhere between Rs 18,000 to Rs20,000 per month.

ORR’s major junction in Narsingi enhances its connectivity. Additionally, the presence of 60 feet road too works in the area’s favour. TSRTC buses have regular halts at Narsingi Bus Stop, thereby connecting the area to other parts of the city. Autos and shared autos too are available for short distance commutation. As mentioned earlier,

Narsingi is home to many professionals working in the IT and ITeS sectors. The city’s IT and ITeS hubs of Gachibowli and Madhapur are at a distance of 7KM and 13KM respectively. Rajiv Gandhi International Airport (RGIA) is 26KM away. Jubilee Bus Station is 22KM away while Secunderabad Railway Station is at a distance of 20KM.Mahatma Gandhi Bus Station (MGBS) is 17KM away.

Narsingi is home to a major hospital coupled with few smaller nursing homes. There are few schools as well. The area has many daily needs stores thereby residents here need not travel far for small grocery requirements. However for larger entertainment and shopping needs such as malls, exquisite cuisine restaurants, multiplexes, etc. residents travel to Gachibowli.

While there is a major ORR junction and 60 feet road built, the interiors do not have good roads. Water supply too suffers here. Narsingi comes under Gram Panchayat hence there is no municipal water supply. Reliance on water tankers and bore-wells is prevalent here.

Megha Deshpande, Times Property, The Times of India, Hyderabad

5 questions for home buyers

Before they take the plunge, potential borrowers need to ask themselves 10 questions. Your answers will tell you whether you should save more for a bigger down payment, buy a smaller house, invest in a cheaper city or not buy at all.

1. Can you afford the home loan EMI?

It might sound a no-brainer, but many home buyers get this wrong and bite off more than they can chew. The home loan EMI should be around 40% of your net household income. But that is if you don’t have other loans. A high EMI outgo can put your house-hold budget under pressure. If the home loan EMI accounts for more than 50% of the net household income, other goals will have to be downsized or junked altogether. Don’t be fooled into thinking that the recent cut in home loan rates have made property a viable investment. It will have a marginal im-pact on the total EMI. A 25 basis point cut will reduce the EMI of a Rs 50 lakh loan for 20 years by Rs 826.

It’s easy to get ambitious and go for a bigger loan if you are expecting generous increments in the coming years. Don’t make the mistake of leveraging on future income. While your income would certainly rise, but so would your expenses and financial commitments.

2. Have you factored in the other costs?

The advertised price is usually the base price of the property. The add-ons are usually kept hidden till you sit down with your cheque book. Many builders will slip in charges for facilities that you thought were free with the property. Others will keep certain charges hidden from the buyer by tucking them away in the fine print. These apart, there are other big-ticket add-ons such as the legal costs. The stamp duty and registration charges payable to the authorities add up a neat 7-8% to the overall price of the property. In all, these charges can push up the property price by 20-25%. Make sure you have factored in these additional costs.

3. Have you considered renting?

The high property prices means that renting is a better option in most cities. A 2-BHK house in Mumbai will cost close to Rs 1.2 crore. If a buyer puts in Rs 40 lakh as downpayment and takes a loan of Rs 80 lakh, the EMI for 20 years comes to about Rs 76,500. He also loses around Rs 23,500 in interest that the Rs 40 lakh downpayment could have potentially earned. The total cost per month comes to Rs 1 lakh while he can easily get a similar house on rent in Mumbai for about Rs 40,000-45,000 a month.

Don’t go by hypothetical examples.

Instead, use an online rent-or-buy calculator to find which is is better for you.

The one developed by Bigdecisions.com is a sophisticated online tool that takes into account several things, including the cost of the house, the amount of downpayment, the rate of interest of the home loan, the expected appreciation in the house price, the rent payable for a similar accommodation in the area and even the expected hike in the rent every year.

4. Will house value rise faster than the interest on loan?
In the early 2000s, when home loans were available at 6-7% and property prices were galloping at 20-25%, it made eminent sense to invest in an upcoming apartment project. Now, property prices are appreciating at a slower pace. In some markets, such as Noida and Greater Noida in the NCR, prices have even come down in the past 12-18 months.
If you are buying property as an investment with a loan, first assess whether its price will appreciate at a rate higher than what you are paying on the loan. “If you are payings 10% on the loan and the property price is expected to appreciate by 5-6%, then it is a bad buy,” says Manish Shah, Cofounder and Chief Executive of Bigdecisions.com. Shah says the expected rate of appreciation is the single biggest determinant in their rent-or-buy calculator. “It makes the biggest difference in the decisions,” he says.
5. Will this purchase force you to postpone other major goals?

Stagnant property prices and high EMIs are not the only problems that potential home buyers should be wary of. Their home buying plans can have serious implications on other financial goals, such as saving for their children’s education and marriage and their retirement. If the home loan EMI is too big, it will push other goals out of the financial plan. Worse, buyers like the Mehtas might have to liquidate existing investments to raise money for the downpayment. Though parents are unlikely to surrender child insurance plans and education related investments, retirement planning is easily sacrificed. “Younger people tend to think that retirement is an old age problem and defer the investment,” says Shah of Bigdecisions.com. It is easy for investors to raid their retirement savings to fund their real estate dreams. You can take loans from the Provident Fund or the NPS for buying a house. Buy a house only if the purchase will not impact other goals. Otherwise, be ready for an asset-rich but cash poor retirement. Or not having enough money to send your child to a good college.

Property demand picks up in Hyderabad

Property Management Services Hyderabad

The real estate market of Hyderabad is sensitive in terms of property prices. Buyers of the city lean towards reasonably priced homes and the developer community is aware of this inclination. Housing options are plentiful to cater to both investors and end-users.

Other cities such as NewDelhi-NCR, Mumbai, Bengaluru and Chennai are mostly catering to the mid and the mid to higher segment buyers. The New Year seems to be working well for the real estate sector. Though it is too early to comment, but some experts have mentioned that transactions seem to have picked up.

All property types in the city seem to be in moderate demand. Interested buyers from outside the city and overseas are increasingly preferring Hyderabad to other southern cities because of its affordable prices. “Currently, it is a good time to invest in Hyderabad due to its affordable price segments.

The property valuations of Hyderabad are good as compared to other metros. The demand is moderate, particularly in the villas category. Capital appreciation is expected in this category if an individual is thinking to invest now,” says a real-estate developer who is predominantly into construction of villas.

Projects and home preference

The availability of villas in the market is also high. Over 4000 villas are listed on a real estate portal currently and over 190 new projects are under construction. “Post the emergence of Telangana state, the real estate market of Hyderabad has finally started picking up and many are showing interest towards residential houses and independent villas,” says Venu Gopal, consultant, Shriram Properties.

In the villas category, buyers are mostly salaried employees in MNCs or IT companies with a good pay package. The affordability factor helps this section of buyers to invest in villas. “Plots, the once preferred category in Hyderabad, have registered a low demand in the past two to three months. Though enquiries for plots are still coming, very few turn into actual transactions,” adds Gopal.

Where to find villas?

Currently, East Hyderabad has the highest independent housing choices available within 50 lakh. Areas such as Rajiv Nagar Colony, Dammaiguda, Vidya Nagar, Dilsukh Nagar, Boduppal and Uppal are some options for home buyers preferring villas in the city. These properties are available in size ranges of 1000-2000 sq ft. A few apartments are also sized over 2000 sq ft.

Adibatla, located in South Hyderabad, offers independent houses and villas in various price ranges. Independent villas are available for 30-60 lakh with sizes of 1500-2000 sq ft. The locality is a part of the Information Technology Investment Region (ITIR) and thus witnesses majority demand from the IT professionals.

At present, areas in North Hyderabad such as Madhapur, Gachibowli, Miyapur, Narsingi and Bachupally are witnessing a rise in the sale of villas. In Madhapur, the price range of 4BHK villas is 2-4 crore and above, while the size range is 3500-5000 sq ft. You can also find ready-to-move-in properties here.

In Gachibowli, near Hitec City, the size range for 4BHK units is the same as in Madhapur, but the price range is wider at Rs 1-5 crore and above. Miyapur is another area that offers 4BHK villas on rent at low prices. One can rent a 4BHK villa with an area between 2500-3000 sq ft for 20,000-35,000 per month. Though on the outskirts, the area is well-developed and has several schools, hospitals, restaurants and banks within the radius of 4-5 km.

Interestingly, West Hyderabad is offering quality constructions at expensive rates.

Surbhi Gupta and Namrata Roy, Times Property, The Times of India, Hyderabad

North Hyderabad property market growing at fast pace

If you are looking to buy a house in Hyderabad and have a limited budget then North Hyderabad can be a good choice for investing. Today, locations such as Miyapur, Kukatpally, Kompally, Chanda Nagar and Ameerpet are the growing areas in the region. Most of them are offering affordable housing. Apart from developed properties on sale, one can easily find under-construction projects within the price range of 20-70 lakh in the northern parts of the city.

Opportunity for investment

According to real estate portal, over 3000 properties across various segments are listed for sale in North Hyderabad. Over 70 under-construction properties are available in the region. These properties are in areas such as Kukatpally, Sainikpuri, Miyapur, including others. The most available property types in North Hyderabad are 2-3BHK units.

Trivita Roy of Jones Lang LaSalle (JLL) says, “North Hyderabad emerged as one of the prime residential destinations to mid-low income groups working in the IT hubs of Hitec City and Gachibowli. Projects in these locations have witnessed appreciation and are worth investing. The ongoing metro rail project is one of the key factors for price appreciation in this sub-market.”

To respond to the traffic congestion of Hyderabad, the government has proposed metro linkages within the city. The challenge being faced is the delay in the completion of the metro project, which is still under -construction. The 8-km long Nagole Mettuguda line and the 11-km Miyapur-SR Nagar lines are expected to be operational by March, 2016. The construction of the first phase of 72-km with 66-stations is due to be completed by December 2017.

Miyapur and Kukatpally are located close to the upcoming metro rail project. These localities may witness price rise in the near future after it is developed completely. But it is expected that property prices will not be as expensive as compared to Gachbowli, Jubilee Hills, Banjara Hills including others areas of Hyderabad. In Miyapur, 2BHK units are currently available for 20-40 lakh in sizes of 1000-1500 sq ft and 3BHK units are available for 35-80 lakh in the size range of 1,600-2,000 sq ft.

The residential properties available in Kukatpally are comparatively higher than Miyapur and Sainikpuri. Affordable properties in these localities mainly comprise of 2BHK units. The cost of 3BHK units is within the price bracket of 60 lakh-1.5 crore and above. The size range of 3BHK units is 1500-2000 sq ft. However, 2BHK units sized 1,000-1,500 sq ft are easily available within 25-50 lakh. In both Miyapur and Kukatpally, one can find modern amenities such as security, outdoor tennis courts, reserved parking, power back-up, gym, club house, DTH television and waste disposal facility.

Chandanagar is a thriving commercial area and investing in real estate here is expected to bring good returns. The 2BHK units sized 1,010-1,198 sq ft are priced between 27-33 lakh. The size range of 3BHK units is 1,300-1,825 sq ft, while the price range is between 40-76 lakh.

Rajesh Prajapati, MD, Prajapati Constructions Ltd, says, “Well-developed residential localities in Hyderabad such as Manikonda, Kukatpally, Miyapur and Sainikpuri are offering homes at affordable prices. Besides regular sales and new launches of apartments and villas, what is heartening is that there has been a regular demand without fluctuations. This proves the growth is gradual and real, rather than haphazard or hyped. These places will prove lucrative for early investors, and could attract large investors in future.”

Ameerpet is also one such locality in the north which has witnessed consistent rise in capital values in the past two years. The area is now among the top five localities that has witnessed capital appreciation.

In Ameerpet, 2BHK units are available for 25-50 lakh and the size range is 1,000-1,500 sq ft. Units of 3BHK are expensive and the capital value is between 80 lakh 1.5 crore. The size range of these units is 1,500-2,500 sq ft.

The localities mentioned have good social infrastructure and connectivity. But, the downside is that traffic is heavy in Miyapur and Kukatpally.

Namrata Roy, Times Property, The Times of India, Hyderabad

Documents you need while purchasing a property

Documentation is an essential part of a property acquisition process. However, it may well turn out to be a complicated one.

Different states in India have different requirements. There are many laws that govern the purchase of properties. There are various types of properties that you would want to buy and you’ll require certain documents while buying them. Let us have an overview of the most important legal documents to be verified in case of various properties –

(I) Purchase of freehold residential plot/house:

The main documents to be verified in such a case are –

# Copy of the sale deed through which the seller got his title to the property
# Copies of all earlier sale deeds to verify the chain of past owners of the property
# Registration details of the sale deed
# Agreement to sell the property
# Receipts of payments made by the purchaser to the seller
# Copy of the sale deed for registration purposes

(II) Purchase of property from original allottee of a government authority:

In case you purchase property from original allottee of a government development authority, i.e. DDA or MHADA, the documents you need are –

* Allocation letter
* Allotment letter
* Possession letter
* Receipts of payments made to authority

(III) Purchase of property from power of attorney (POA) holder of original allottee of a government development authority:

Apart from the documents mentioned above, the main documents you’ll need to verify here are

# Permission to mortgage
# Authorisation letter signed by the seller
# Receipts of payments made by purchaser to seller
# Verification of signature of seller from his bank
# General power of attorney
# Special power of attorney
# Will Agreement to sell the property

(IV) Purchase of flat in a group housing society from an original member of the Society:

With the rapidly growing urbanization, there has been a surge in the number of flat buyers in India. The main documents to be verified while buying a flat from an original member of the apartment Society are –

* Share certificate issued by the society
* Lease deed of society
* Registration details of the society
* Bye-laws of the society
* No objection certificate from the society
* Approved building plan
* Title of builder
* Undertaking from society
* Allocation letter, Allotment letter and Possession letter
* Receipts of payments made to authority
* Permission to mortgage
* Authorization letter signed from seller
* Receipts of payments made by purchaser to seller
* Verification of signature of seller from his bank

(V) Purchase of flat in a group housing society from a power of attorney (POA) holder:

Apart from the ones required while buying a flat from an original member of the Society, the main documents needed here are –

# General power of attorney
# Special power of attorney
# Will Agreement to sell the property