IT expansion plans lift Hyderabad office rentals over 45%

According to Jones Lang LaSalle (JLL) India, the rents in 2009 and 2010 were in the range of 28-32 per sq ft per month, compared with 43-47 per sqft now

Source: ET
Hyderabad is witnessing a sudden upsurge in commercial office rentals that have appreciated over 45% as corporates have started taking calls on their expansion plans, which were shelved for the past five years.

According to Jones Lang LaSalle (JLL) India, the rents in 2009 and 2010 were in the range of 28-32 per sq ft per month, compared with 43-47 per sqft now. "During the political instabili ty, construction activity slowed down significantly, leading to rise in rents in key sub-markets of Hyderabad. The rents appreciated almost 15-20% in the past two years, given the strong corporate expansion in Hyderabad with limited availability of quality leasable space," said Trivita Roy, associate director (research and REIS), JLL India.

The bifurcation of Andhra Pradesh had delayed office space plans of several companies. With the formation of the new state -Telangana -and new policies being rolled out by the new government, the unease among corporates has eased, and they have started looking for office space.

The city, which is home to offices of MS, Google, Facebook, Amazon and Yahoo, saw property valuations mostly being stagnant, or increasing by less than 2%. IT companies that had kept their expansion on hold in Hyderabad due to the Telangana crisis are back in action. Accenture, UHG, Zen Q, HSBC and JPMC ex panded more than one lakh sq ft this year, which has reduced the vacancy levels in Hyderabad.

The vacancy in the key IT hubs such as Hitec City and Gachibowli is about 7% for grade A office assets. "About 3.6 million sq ft of supply is likely to hit market in 2016 and this does not include the built to suit, or campus options, of office space," said Roy.

Vineet Surana, director at APS Property Solutions in Hyderabad, said, "Grade A office space vacancy levels had fallen to single digits. Rentals in peripheral business districts like Madhapur & Kondapur have seen a surge of 15-18% over the previous years.

Coincidentally, the city also recorded the highest office space absorption among the top eight cities in the country in the third quarter of 2015, according property consultant Cushman & Wakefield, as political stability in the region saw more corporates sign property deals.

Net absorption of office space in the city was recorded at 24 lakh sq ft, while commitments were at 3.85 lakh sq ft, the highest office space net absorption witnessed after the formation of Telangana and the highest since 2008.

Puravankara Projects, a Bengaluru-based developer, sold its Grade A Office Space in Hi-Tech City (Kondapur), in Hyderabad, to investors in four days.

"We are witnessing an increasing demand for commercial office space in Hyderabad. Infrastructure development, political stability and significant FDI in vestments have been very encouraging. This would lead to a sustained real estate growth in this region," said Ashish Puravankara, MD, Puravankara Projects.

Special rail track work for MMTS secunderabad to Ghatkesar, Hyderabad

Multi-level flyovers in Hyderabad soon

Source: Deccan chronicle   21 Mar, 2015   

The multi-level grade separators (flyovers) proposed at five junctions surrounding KBR Park, Jubilee Hills, will be “steel composite constructions”, as they reduce 50 per cent of construction time. However, that entire project will cost 30 per cent more. The GHMC will be inviting global tenders after the MLC elections, probably in the first week of April. 

 

Unlike a flyover on which traffic flows in two directions, multi-level flyovers facilitate simultaneous traffic flow in several directions. In the first phase itself, the five multi-level flyovers will be taken up at a cost of Rs 380 crore.

 

The Jubilee Hills check-post grade separator will to be the longest and will be built at a cost of Rs 120 crore. Earlier, the GHMC had proposed six separators, but the one from Basavatarakam Indo-American Cancer hospital to KBR Park was cancelled due to non-feasibility. The proposed flyovers at KBR Park Junction, Road Number 45, Jubilee Hills and Filmnagar road junction will have two levels, meaning two flyovers will crisscross each other and traffic will flow in different directions. The flyovers at Jubilee Hills check-post and Maharaja Agrasen Chowk, Road No 12, will have a single level with uni-directional traffic flow.

 

The GHMC will send the proposal for the “steel composite constructions” to the CM for approval following which tenders will be called. The cost of Rs 380 crore is excluding the land acquisition and it may change based on the work, said sources.  

 

As a part of the ‘Strategic Road Development Programme’ for Greater Hyderabad, 82 km of city roads will be taken up for development on priority basis in phase one, along with the multi-level grade separators. 

 

The road development project would cost Rs 1,605 crore. The aim of the SRDP is to come up with better road facilities that ensure that travelers move without having to halt or being stuck in traffic jams. In the first phase, the GHMC will focus on 10 major roads and junctions in key locations.  As a part of the Strategic Road Development Programme, the selected road stretches would be widened,  said the GHMC authorities. The road development includes improvement of road geometry, intersection improvements, pedestrian side-walks and crossing facilities, traffic signage, marking, traffic signals and utility ducts.

Puravankara Projects to invest Rs 170 cr in office complex in Hyderabad

Source: Economic Times         20 Mar, 2015

Realty firm Puravankara Projects LtdBSE -1.73 % will invest about Rs 170 crore over the next two years to develop an office complex in Hyderabad. 

Bangalore-based firm has entered into a joint development agreement with land owner to develop this 4-acre commercial project, that comprises 6 lakh sq ft of built-up area. 

"Buoyed by the successful sale of its commercial projects in Chennai and Bangalore, Puravankara is now launching Purva Summit, its Grade A Office Space in Hi-Tech City (Kondapur), in Hyderabad," Puravankara Projects said in a statement. 

In this project, Puravankara will sell as well as lease the office spaces. 

Under the sale model, the company has kept the starting price at about Rs 25 lakh for a 300 sq ft office space, enabling the retail customers to participate and invest in the commercial property market. It would lease the office spaces to large corporate tenants on behalf of the retail customers. 

In the first phase, Puravankara has got the Expressions of Interest (EOI) from potential buyers for double the area that it intends to sell. 

"The Real Estate sector in Hyderabad seems to have stabilised and we are likely to see an upsurge in transactions as well as commercial activity going forward. The low vacancy levels in Grade A office Space makes Hyderabad an attractive destination for investments into commercial properties," company's joint MD Ashish Puravankara said. 

According to sources, the total investment on construction of this project would be Rs 170 crore over the next two years and the same would be funded through internal accruals and sales realisation from this project. 

The company could achieve a sales realisation of about Rs 220 crore if it decides to sell its entire economic interest in the project, they said, adding that the company would retain some portion for leasing purposes. 

Puravankara Projects has presence in Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad and Mysore. It has 24.87 million sq ft of projects under development and additional 81.83 million sq ft in projected development over the next few years. 

Hyderabad is best city to live in India: Mercer's 'Quality of Living Report-2015'

Economic Times,  March 4, 2015

NEW DELHI: Leaving behind India's more traditional business centres such as Mumbai and Bangalore, the city of pearls Hyderabad is the best city to live in the country, says a global survey. 

According to consultancy firm Mercer's 'Quality of Living Report-2015', notwithstanding its top rank among Indian cities, Hyderabad globally ranks at 138th position in a list of 230 cities around the world in terms of standard of living. 

The list is topped by Vienna for the second consecutive year. 

Besides Hyderabad, the list figures seven other Indian cities -- Pune (145), Bangalore (146), Chennai (151), Mumbai (152), New Delhi (154) and Kolkata (160). 

"Over time, Hyderabad has emerged as a city of choice due to factors such as improved options for international schools and a fine choice of reputable English speaking schools," Mercer said. 

"Additionally, Rajiv Gandhi International Airport is located 22 kms from the city and offers a good range of international flights, which improves its ranking on account of public services," it added. 

Mercer India Practice Leader (Global Mobility) Ruchika Pal said "considerable population increases in Mumbai and New Delhi, in the recent decades, have increased existing problems, including access to clean water, air pollution, and traffic congestion." 

Globally, Vienna is followed by Zurich, Auckland, Munich, Vancouver, Dusseldorf, Frankfurt, Geneva, Copenhagen and Sydney, as the world's top 10 cities in terms of quality of living. 

Bangui ( Central African Republic) and Baghdad ( Iraq) were ranked as the bottom two cities on the list. 

Interestingly, the survey found that Indian cities are safer than most others in South Asia. 

While the ranking of Sri Lanka's capital Colombo is above Hyderabad at 132, Dhaka in Bangladesh is ranked 211 and Pakistan's Islamabad, Lahore and Karachi are ranked 191, 199 and 202, respectively. 

The parameters  taken into account for the survey include political and social environment, medical and health care, public services, recreation facilities and natural environment, among others. 

Read more at:
http://economictimes.indiatimes.com/articleshow/46455517.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Hyderabad is best city to live in India: Mercer - Deccan Chronicle Hyderabad has best quality of living in India - Greatandhra.com Hyderabad ranks top in quality of living: Mercer - Hindu Business Line

Vistara spreads its wings to Hyderabad

Source: Deccan Chronicle   Dt: March 2, 2015

Hyderabad: The newly launched Full Service Carrier Vistara has spread its wings to Hyderabad beginning operations in the city. The Tata Sons and Singapore Airlines joint venture first flew from Hyderabad to New Delhi on Sunday morning. Airline officials said they will consider adding more flights to Hyderabad as the fleet grows. Hyderabad is currently the only South Indian city it operates from with a weekly frequency of 14 flights on one side. The first Vistara flight from Hyderabad to the national capital took off at 9.15 am with the chief executive officer Phee Teik Yeoh and chief commercial officer Giam Ming Toh on board.

“Hyderabad is the first South Indian city we are flying to. Unlike other cities, the Aviation Turbine Fuel prices here make it cost effective. We came to Hyderabad before other cities in the south,” Phee Teik Yeoh said. Asked if the city could see more flights from Vistara, he said, “Why not? You will hear from us on that. We are going to release our summer schedule soon.” But it might not be until October before Vistara expands its schedule in Hyderabad.

Giam Ming Toh said, “We are currently constrained by the size of our fleet. We have five aircrafts (Airbus A320) now and the number will increase to seven by September and hopefully nine by the end of the year. And there are the Route Dispersal Guidelines also. With Hyderabad we have added a metro city so now we will have to add a non-metro.”  Vistara which has international ambitions is vocal against the 5/20 rule. The central government is also considering scrapping the rule but officials say that it might not be entirely done away with but only modified. The rule mandates that an airline should complete five years of domestic operations and have at least a 20 strong fleet to be eligible for international operations.

“There are no Indian airlines flying to Malaysia or many other countries. Singapore Airlines alone operates more flights to the United States than all Indian airlines put together. You are not allowing your aviation to grow,” Ming Toh said.Teik Yeoh said that the government has also realized the rule must be scrapped. Though it suffered on the Passenger Load Factor, Vistara had the highest On Time Performance among all domestic carriers at 89 per cent. “We beat all other airlines. That is the kind of service we are looking at. PLF is just a number because if I reduce the fares to `500 then it will increase to 100 per cent automatically.”

Vistara says it is looking to compete in the airfare market but wants to exploit untapped potential. “We are the first airline to introduce premium economy class in the domestic aviation sector. We have 20 per cent lesser seats (148) than the maximum seats used by most airlines so it is more comfortable for the passenger,” he added.

Doubt over Hyderabad’s date with Metro

Deccan Chronicle   Dt: Feb 24, 2015

Hyderabad: The scheduled inauguration date for the Nagole to Mettuguda stretch of the Hyderabad Metro is March 21, but no one seems to know whether the deadline will be met.

Mr N.V.S. Reddy, managing director of Hyderabad Metro Rail, said, “I can’t comment on it. The state government has to decide on that.”

While Hyderabad Metro Rail is non-committal, works at the ground level are going on in full swing with Larsen & Toubro giving the final touches.

Mr V. B. Gadgil, managing director of Larsen & Toubro Hyderabad Metro Rail, said, “The project has works which are to be completed according to the schedule. We are following that.”
They are, however, mum on the subject of inauguration.

A senior officer of Hyderabad Metro Rail said, “The scheduled date to start on March 21, 2015, had been set long ago. So far, the government has not mentioned anything.

They are also silent on this aspect, which means that they too will follow the schedule. If there was any attempt to postpone the same there would have been some government orders. But so far, nothing has come which means that the ground people have to continue with their work.”

There are, meanwhile, too many things at stake. Another officer explained, “The railway safety clearance certificate has to come from the Centre and this requires to be expedited by the state government. At the same time, protocols have to be set in place, which would require proper planning. Lack of clarity has resulted in major confusion and also speculation.”