NEW TOWNSHIP ON HYDERABAD OUTSKIRTS TO BOOST REALTY

Source: sakshipost

Hyderabad: Real estate industry has a major role to play in the development and success of any international city, believes the Telangana chief minister K Chandrasekhar Rao.

Barely two months after forming the first government in Telangana, KCR dished out a slew of programs and policies that were to benefit the real estate sector with a particular focus on Hyderabad.

Some of the highlights were abolition of the value added tax (VAT), extension of the single-window clearance system for the industrial sector, promises to remove encroachments that waterlogged roads and colonies, special growth clusters along the ORR and plans of building 4-lane roads linking east-west, north-south corridors in the next five years.

The CM's vision and priorities seemed to be in the right direction with policies that sought to help out the realtors such removal of double taxation and rationalisation of seigniorage fee to Rs.3 per sft besides helping out the daily commuter by easing traffic congestion and providing better quality roads, street lights and storm water drains.

The chief minister seemed determined to place Hyderabad on the list of international cities that attracted a cosmopolitan crowd and investment. His plans however did not seem to go as well as he would have intended. There is a regressive slump in the real estate market as a result of capital outflow to the real estate sector of the neighbouring state of Andhra Pradesh. The investor sentiment of watch and wait during the days of agitation did not really hop back into a realty frenzy that was initially predicted.

His innovative move to develop the temple town of Yadadri (earlier Yadagiri gutta) backed up by quick marketing for spiritual tourism and a general boost to the tourism industry in Telangana has seen limited response for the skeptical investor. Free housing for the poor has been replaced by low cost housing where the beneficiary bore part of the cost.

4000 acre township near Hyderabad proposed

KCR however seems to be resolute! In a meeting with the captains of the real estate industry on Saturday, KCR invited them to play a participatory role in the development of the industry. He proposed to develop a 4000 acre township on the outskirts of Hyderabad. He wants more focus on greenfield projects and said that the government would play a supportive role in this objective.

The meeting at the CM's camp was attended ex-president of Confederation of Real Estate Developers’ Association of India (CREDAI) C.Sekhar Reddy, its Telangana president G.Ramireddy and its Hyderabad president S. Ramireddy.

Focus on skyscrapers, adviced KCR. They will stand as a testimony to a city's progress and development he added. Hyderabad will be surrounded by Health City, Pharma City and Cinema City and since Bengaluru is facing the challenge of overcrowding, companies are now preferring to move to Hyderabad he stated. He invited to the real estate developers to become part of this strategical expansion of the city.

The chief minister revealed that HMDA is working on a report called 'Hyderabad Today and Hyderabad in Future' and wanted the real estate captains to participate and contribute to this report. He pointed out that it was necessary to completely understand Hyderabad before adopting from other cities plans.

It remains to be seen how the real estate developers who are already riding the slump with projects in various stages of development and not enough buyers, will respond to these new initiatives of the government.

E.P.Yesudas

Hyderabad Metro Rail Showcases Sample Station Retail Stores

Source: NDTV

HYDERABAD:  Each typical metro station of Hyderabad Metro Rail will have retail space ranging from 2,500 square feet to 9,000 square feet while interchange and special stations will have more space, said project developer L&T announced today.

Two stores of 180 and 200 square feet have been created at Nagole station to showcase to retailers and others to give them a first-hand experience of the proposed space.

L&T Metro Rail (Hyderabad) Ltd chief executive and managing director VB Gadgil on today inaugurated the sample retail stores and unveiled the retail development plans.

Under the brand name Hyderabad Next, the retail space at the stations is being developed to cater to the daily requirements of commuters making metro their one stop solution.

Each centre will have convenience stores like grocery, vegetable, daily needs, accessory stores, quick service restaurants, large format food courts, ATMs, medical stores and laundry centres.

There will be a total of 64 stations including 55 typical stations, three interchange stations and four special stations. A typical station will have retail space ranging from 2,500 square feet to 9,000 square feet at two different locations at a concourse level. Station retail box will have stores sizes ranging from 100 square feet to 350 square feet while entry exit retail area will have store sizes ranging from 1,000 square feet to 2,500 square feet.

Interchange and special stations will have retail spaces ranging from 10,000 square feet to 40,000 square feet with store sizes ranging from 1,500 square feet to any maximum possible size.

These stations are being considered to be made as destination stations with kids, women, electronic, and entertainment themes.

The developer has also come up with a unique advertising model to make the advertising business more professional with reduced risk and return on investment to brands.

In June, L&T Metro Rail had announced that it will develop six million square feet of real estate at a cost of about Rs. 2,300 crore under the first phase as part of Metro rail project, which is expected to be commissioned in July 2017.

The construction major, which is building 71.16 km elevated Metro rail in public-private partnership, has already achieved financial closure for the first phase of Transit Oriented Development (TOD), which is scheduled to be completed with the commissioning of the Metro.

L&T also plans to take up development of 12.5 million square feet of space over next 10 years. Mr Gadgil had hinted that this may require more than Rs. 5,000 crore.

In 2011, LTMRHL achieved financial closure for Rs. 16,375 crore - Rs. 14,132 crore for Metro rail system and Rs. 2,243 crore for first phase of TOD.

Land price in Hyderabad breaks all records

Breaking all records, an acre of land in Hyderabad has fetched Rs.29.28 crore to the Telangana government in an e-auction conducted on Wednesday.

Source: ET
Breaking all records, an acre of land in Hyderabad has fetched Rs.29.28 crore to the Telangana government in an e-auction conducted on Wednesday.

Aurobindo Pharma bought the prime land of five acres at the highest rate in Raidurgam close to the IT clusters of Hitec City and Gachibowli. The same company purchased another parcel of 3.65 acres in the same area at a price of Rs.24.88 crore per acre.

Naya Infra purchased two acres of land in Raidurgam at a price of Rs.24.20 crore per acre. Saimed Labs paid Rs.22.02 crore per acre for a three acre parcel.

Officials said this broke all previous records. Even during the boom time in 2007-08, the auction of government land in Raidurgam had only fetched Rs.18 crore to Rs.23 crore per acre.

The companies, which purchased the land in the auction conducted by Telangana State Industrial Infrastructure Corporation (TSIIC), plan to build world-class corporate headquarters.

The government body also auctioned lands in Manikonda and Kokapet areas for residential use. The price also broke previous records. A real estate company paid Rs.12.63 crore for an acre in Manikonda while an acre land in Kokapet fetched Rs.6.05 crore to the government.

TSIIC managing director E. V. Narasimha Reddy said that to ensure transparency, the auction was conducted through e-auction cum e-tender process.

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.