Hyderabad to witness highest supply of shopping malls in 2017

Source: Realty.Economic Times Dt: 5.1.2017

NEW DELHI: Eight shopping malls spanning 2.6 million square feet are expected to become operation in Hyderabad in 2017, according to a recent report by Cushman & Wakefield. The city will see highest supply of malls this year.

While these malls would be spread across the city, majority of the malls would be seen in the north-west quadrant in locations such as Kondapur, Gachibowli and Chandanagar.
Anshul Jain, Managing Director, India, Cushman & Wakefield said, "Retail mall spaces have, in recent times, seen interest from institutional investors which is providing an additional boost to developers to take up retail malls space building. Further, once India also starts listing REITs, quality retail spaces will be seen as a viable mid to long term investment asset for investors. This has further enhanced the attractiveness of retail mall spaces for developers. This is perhaps the reason why 2017 is expected to see nearly double the amount of retail space as against 2016."

Following closely, Chennai will witness five shopping malls getting operational spanning over 2.5 million square feet during 2017. Most of the supply is likely to be in seen in peripheral locations such as Vandalur, Navalur, while two of the malls will become operational in Velachery during the year.

Upcoming shopping mall supply in 2017:

Telangana Information Technology Association inaugurates incubation centre in Hyderabad

Source: Indian Express, PTI ., Dt: 24.11.2016

Telangana Information Technology Association (TITA) inaugurated Telangana Innovation and Incubation Center (TIIC) in Hyderabad on Thursday. The inauguration of the first Techno Rural Startup Incubation Center took place at Rajiv Gandhi University of Knowledge Technologies IIIT Basar campus, a release said.

___________________________________________________________

HMDA APPROVED PLOTS

www.hmdaplots.blogspot.in

___________________________________________________________

The Vice Chancellor Sirasani Sathyanarayana and TITA Global President Sundeep Kumar Makthala together inaugurated the centre.

"The TIIC will enable and support all the students of IIIT and youth around the village to transform their potential ideas into startups, it will support in the form of mentoring, funding, ideation, and knowledge support," TITA said.

IIIT Basara and TITA had signed an MoU to support creating the startup ecosystem in IIIT Basar, entrepreneurship with business plans along with the prototype infrastructure.

Japan-based SafeTraceHub, multimedia firm Prism Multimedia, and the US-based Adsidious have shown interest and given consent to extend their services in TIIC.

IIIT and TITA, through TIIC, would be working partners in major projects undertaken by the Government of Telangana as well as the Central government.

"TITA is planning to establish Telangana Incubation and Innovation Centers in all the universities and colleges across Telangana to encourage new startups at college level," TITA President Makthala said.

"The mandate of TIIC would be to generate a free flow of ideas and their implementation, in both directions of the constituent partners – RGUKT and TITA. The TIIC would help students to generate startups resulting from selected ideas. These start-ups would lead to generating more employment opportunities for the rural youth of the region," it said.

While the technical and legal support for the TIIC would be provided by TITA and its recognised channel partners, Rajiv Gandhi University of Knowledge Technologies (RGUKT) would provide the requisite infrastructure support – like working spaces, electricity, water, networking, bandwidth etc.

"The work at TIIC would be selectively permitted to be utilised as a part of the mandatory project work for students, under the guidance of recognised faculty of RGUKT and TITA experts. It was also agreed that a steering committee would be set up comprising of members from TITA as well as faculty of RGUKT…," said IIIT Basar Vice Chancellor Sathyanarayana.

In TIIC, start-ups can be established in digital media, IOT, solar energy, smart cities, telecom services, mobile technologies, cloud analytics, healthcare, robotics, learning management system, artificial intelligence etc, it added.

World’s second biggest sitting statue coming up near Hyderabad

Source: The Hindu, 10.12.2016

Tribute to Ramanujacharya at the start of 1000th birth anniversary celebrations

A complex with 108 temples and a towering 216-feet-high sitting statue of 10th century Bhakti saint Ramanuja is taking shape on the outskirts of Hyderabad.

Called the Statue of Equality as a tribute to Ramanujacharya’s philosophy and teachings, the gigantic structure will mark the beginning of the 1000th birth anniversary celebrations of the religious guru, planned by Chinna Jeeyar Swamy and his religious trust.
_______________________________________________________
Plots near Ramanujacharya temple

Call: 9912043000
________________________________________________________

“The first phase of the project involving the statue will be ready by November next year and costs about Rs. 250 crore, which has come in the form of donations. The whole project, including the temple complex and the digital sound and light show at the base of the statue, is estimated to cost Rs. 1,000 crore,” said CEO of the project S.M. Balasubramanyam, who is a former head of the Endowments Department.

At Muchintal village

As workers pour concrete into the base of the structure, which is called the bhadrapeeta, a glimpse of the grandeur and magnificence of the project can be seen from the 54-feet high multi-storied structure on which the statue will come up in Muchintal village, a few miles from the Hyderabad International Airport at Shamshabad.

“The statue and the temple complex is the brainchild of Chinna Jeeyar Swamy. It will be the second highest sitting statue in the world [the tallest is the Great Buddha in Thailand at 302 ft]. From the ground to the tip of the staff, it is going to be 216 feet,” informs Yellapragada Suryanarayana of the trust which is executing the project.

The base of three-storied building is ready. “The containers with the pieces for the statue are reaching the Chennai port from China in the next few days and we have created accommodation and working space for about 60 specialist Chinese workers, engineers and welders who will assemble the statue,” says Mr. Suryanarayana.

700 tonnes of panchaloha

“We created a 3D digital scaled image, which was supervised by Chinna Jeeyar Swamy to the minutest detail. This was sent to Aerosun Corporation and they have used it to create 1,500 pieces that can be assembled into the statue. The biggest and the heaviest segment is the face which is a 24 ft by 24 ft piece. We have been promised that there will be no welding marks on the statue,” says sthapathi Prasad, who is supervising the work with adherence to spiritual traditions.

Nanjing-based Aerosun Corporation, which has an Art Statue Division, has shaped 700 tonnes of panchaloha into the gigantic statue of the Bhakti saint, right down to the sagging ear-lobes. The statue will be sited on a lotus held up by 36 massive elephants. Within the statue will be a concrete core around which will be the panchaloha sheet, varying in thickness between 10 mm and 20 mm.

Visible from flights

“The statue will be visible from the flights landing and taking off from Shamshabad Airport. We are expecting a similar announcement like the one made in the air [when flights have a view] near Amritsar on the Golden Temple,” says Mr. Suryanarayana.

It is a perfect message for the egalitarian seer Ramanuja, who preached that spiritual bliss is available for all human souls irrespective of their birth.

Demonetisation to strengthen the real estate sector – CREDAI Hyderabad

Source: Siasat 29.11.16

Hyderabad: 29th November, 2016: Confederation of Real Estate Developers Association of India (CREDAI) Hyderabad today announced that the real estate industry fully supports the decision of the government to demonetise currency notes. The Credai Hyderabad members welcomed the Union government's decision to put the halt on black money.

Almost 95% of the Hyderabad market consists of mid segment housing, whose pricing ranges from Rs. 25 lakhs to Rs. one crore. The buyers in this segment are mostly employees, whose income ranges from Rs. 25,000 to Rs. 2 lakhs. They essentially pay the housing instalments from their savings and the bank loans, they get from Banks. Therefore, there is hardly any cash component in their transactions with the developers. In the absence of cash component, the demonetisation has no effect on prices of residential housing or other housing. Similarly, over the years the Hyderabad real estate developers have been accessing the necessary capital from the Banks. Almost all the real estate developers, who are the members of CREDAI and who contribute 85% of the Hyderabad real estate market, undertake real estate development on the lands taken from the landowners under a joint development agreement. Therefore, there is no financial transaction between the developer and the landowner, much less the cash transaction.

Demonetisation is likely to improve government tax collection by broadening the tax base and enabling them to take up development and infrastructure projects on a war footing and boost the growth of the economy. The government would also be in a position to fast track the initiatives such as AMRUT, Housing for All by 2022, Development of 100 Smart Cities etc. leading to significant job creation. This influx of money into the monetary system will also put more money into the pocket of home purchasers through lower tax burden and incentives for home ownership.

The Real Estate sector will witness a major change in 2017 with the introduction of RERA Bill in May 2017 and implementation of the GST regime in April 2017. In view of the several requirements of the RERA Act, the real estate developers will be constrained to take up smaller and limited number of real estate projects. In view of this change the supply of real estate products will come down, while the demand continues to increase in Hyderabad. The gap between demand and supply will increase and consequently the availability of housing units will be less. Therefore, the prices of housing units will increase, once the RERA comes into effect from May 2017 and consequently the prices will tend to increase.

The GST is likely to be introduced from April 2017. Presently the service tax paid on services and others are given a set off against the service tax payable by the developers/homebuyer. Thereby, there is less incidence of service tax on the cost of the housing unit. This facility will not be available once the GST regime comes into effect from April 2017. Consequently, there will be more incidence of service tax on the cost of the project. Further with the introduction of GST the rate service tax will be higher at 18%, compared to 5.5%, which is now applicable. Thus, the real estate prices will increase as a consequence of introduction of GST from April 2017.

According to Mr. S Ram Reddy, President, CREDAI Hyderabad, "We believe that the demonetisation is an initiative to cleanse the economy and make it growth focused. It will be good for the overall economy as the unaccounted cash transactions would also become a part of the mainline economy and provide government more tax inflows enabling them to take up mega infrastructure projects and steer the growth. The banking and financial system will also be plush with funds to provide credit to the industry at a lower rate of interest, thereby spurring the economic growth and creating more jobs. This will give a major impetus to the real estate sector, as more jobs and lower interest rates are likely to encourage end users to purchase their dream homes."

He further added that, "Hyderabad real estate market is driven by the end user demand. The present prices for real estate in Hyderabad are the lowest amongst all the metros with no influence of any speculative operators. The funding by the home buyers is mainly through loans from banks and financial institutions which are all regulated entities. As such, cash deals are not a part of the real estate transactions by our members. All organized developers adhere to strict business principles and maintain complete transparency in the transactions. We have been sourcing funds from banks and Financial Institutions and have not been dealing in cash transactions over the last 5 to 6 years Therefore there will not be any impact on the real estate sector and the prices will remain stable. The much awaited RERA bill will come inforce from May 2017. The effect of RERA is going to be that there would be short supply of housing stock in the market and as a consequence of this shortage, the real estate prices will go up. Also, the effect of a GST coming into effect from April 2017 is that the prices would increase on account of non-availability of a service tax set off as well as increase in the rate of tax rate. So we are of the opinion that for Hyderabad, the demonetisation will have no impact on current real estate prices, but with the introduction of GST & RERA bill the prices will go up. So the home buyers in the city should not delay and purchase a property now."

According to Mr. P Ramakrishna Rao, General Secretary, CREDAI Hyderabad" The real estate sector is in a revival mode and already the implementation of RERA has brought a lot of confidence amongst the buyers. The demonetisation is a positive move. With this, banks are going to have additional funds hence, a fall in interest rates is expected. An early sign is seen with country's largest lender State Bank of India cutting its deposit rates by 1.75 per cent. This would be followed by reduction in lending rates and thereby bring down the EMI for the ultimate consumers and improving their eligibility. This will help drive growth and development in the sector. The Real Estate sector is a significant contributor to the national GDP (approx. 7% ) and is a second largest employment generator and will continue to be the main driving force for the growth of the economy."

He further added that, "The Secondary markets, where there is a prevalence of cash transactions might be affected as unaccounted cash payment would no longer take place leading to some dips in the sale process for assets that are sold or purchased in the short term. However, with the progress of time, it will not be surprising to see prices go up as sellers come to terms with the fact that capital gains tax has to be paid on monies, Sellers are likely to factor that into the sale price. Overall we can expect to witness positive reforms and sales growth in the housing sector. This is a win-win situation for developers and home buyers".

The move will have overall positive impacts on the sector. It will bring much needed efficiency, Transparency & affordability which are integral premises for a welfare state and full fledged development of the economy.

REAL ESTATE WILL BOOM AGAIN

Last few days there has been a surge of messages from "Whatsapp Economists" with the simple theme that real estate prices will fall drastically due to Demonetisation ie ban on Rs 500/Rs 1000 notes.

Here's a few Point Summary of what actual experts with business and economic logic say

1. Demonetization will flood the Banking system with funds driving down both interest rates on Deposits and Loans

2. If Interest rate on FD is just 5-6 % interest on Home Loans will come down to 7-8 % (since Banks keep an 2-3 per cent margin).

3. Historically at such Low interest rates Real Estate industry gets a massive boost as property becomes attractive to everyone: Buyers, Investors and even that invisible category called Businessmen/Professionals.

4. Even when prices are same, Apartments come within reach of Buyers due to lower EMI on Loans due to lower interest rate

5. Investors find Investing in property more attractive than earning a paltry 5-6 % on Bank Deposit as simply buying and renting out gives them more return. PLUS they create an asset and earn appreciation over a period of time PLUS they get income tax deductions

6. Shopkeepers, Retail Malls, Corporate Houses and even professionals like Doctors, Consultants, CA's jump in to buy property as they want preferred location and once that's gone they may never get that chance again. So, they buy at the first available opportunity instead of waiting for prices to fall.

7. Demonetization will see the most money flowing in banking system from people in the unorganized / small scale sector: Farmers, Traders, Tailors, Hoteliers, Beauty shop owners, Tuition classes, small contractors, House Maids, Drivers, Security Guards etc. Crores of new people entering Banking system means that they will also be eligible to get bank loans and fulfill their dream of owning a house

8. Government will have money to invest in infrastructure as Banks will deploy lakhs of crores in Government Securities. With a few lakh crore at its disposal, Government can only boost funding to infrastructure schemes such as Smart City Mission, Swacch Bharat Mission, Housing for All etc which will inturn boost real estate too and make foreign investors invest in a fast developing country.

9. New Airport in town, better connectivity to National/State Highway, Upgradation in City Transport all lead to increase in demand and prices of properties in the city's

10. It is interesting to note that real estate prices show slower rise in countries which have a fully ready infrastructure like USA, UK, Japan etc. Whereas in a developing countries like India, there is a vast difference in prices in a City before and after creation of Infrastructure

Conclusion:

In the final analysis, recent developments such as passing of Real Estate Regulation Act, Demonetization, Goods and Service Tax etc combined with Government focus on infrastructure will only serve as positive factors for growth of Real Estate industry

Factors of Real Estate Industry which get missed due to one-sided picture created by social media:

1. Real Estate Industry contributed 7 % to India's GDP.

2. Second Highest employer after Agriculture.

3. Real Estate Industry supports more than 140 allied industries from large ones such as Steel, Cement and Transport to cottage ones such as bamboo and rope making.

4. Real Estate Industry caters to the basic need of Shelter for every citizen.

5. As per Government of India, more than 90 per cent of demand for Real Estate Is in affordable and mid range category.

6. In era of mechanisation and automation, Real Estate is the only Industry which still continues to provide regular employment to millions of daily wage earners.

7. One of the only Industries which contributes large share of taxes at all levels of Government: Local Government ie Muncipal Corporations etc (Building permission charges), State Goverment (VAT and Stamp Duty), Central Government (Service Tax and Income Tax).

8. Investments such as equity shares, Commodities like Gold, Silver, Mutual Fund etc have seen large ups and downs. Real Estate is the only asset class which has given stable and constant one way growth over last several decades.

9. Real Estate has both value in use and value as investment.

10. Real Estate investment is the best investment from a very long term angle as taxation happens only on sale and in case of reinvestment 100 pc tax can be saved.

11. With Indian economy becoming increasingly urbanized, it is expected that more than 50 percent of India's population will live in cities by next decade. This massive change in demographic and economic profile of the country will give big boost to real estate over.

Omprakash : +919912043000

Hyderabad, TS, India

Telangana Information Technology Association inaugurates incubation centre in Hyderabad

Source: Indian Express, PTI ., Dt: 24.11.2016

 

Telangana Information Technology Association (TITA) inaugurated Telangana Innovation and Incubation Center (TIIC) in Hyderabad on Thursday. The inauguration of the first Techno Rural Startup Incubation Center took place at Rajiv Gandhi University of Knowledge Technologies IIIT Basar campus, a release said.

___________________________________________________________

HMDA APPROVED PLOTS

www.hmdaplots.blogspot.in

___________________________________________________________

The Vice Chancellor Sirasani Sathyanarayana and TITA Global President Sundeep Kumar Makthala together inaugurated the centre.

"The TIIC will enable and support all the students of IIIT and youth around the village to transform their potential ideas into startups, it will support in the form of mentoring, funding, ideation, and knowledge support," TITA said.

IIIT Basara and TITA had signed an MoU to support creating the startup ecosystem in IIIT Basar, entrepreneurship with business plans along with the prototype infrastructure.

Japan-based SafeTraceHub, multimedia firm Prism Multimedia, and the US-based Adsidious have shown interest and given consent to extend their services in TIIC.

IIIT and TITA, through TIIC, would be working partners in major projects undertaken by the Government of Telangana as well as the Central government.

"TITA is planning to establish Telangana Incubation and Innovation Centers in all the universities and colleges across Telangana to encourage new startups at college level," TITA President Makthala said.

"The mandate of TIIC would be to generate a free flow of ideas and their implementation, in both directions of the constituent partners – RGUKT and TITA. The TIIC would help students to generate startups resulting from selected ideas. These start-ups would lead to generating more employment opportunities for the rural youth of the region," it said.

While the technical and legal support for the TIIC would be provided by TITA and its recognised channel partners, Rajiv Gandhi University of Knowledge Technologies (RGUKT) would provide the requisite infrastructure support – like working spaces, electricity, water, networking, bandwidth etc.

"The work at TIIC would be selectively permitted to be utilised as a part of the mandatory project work for students, under the guidance of recognised faculty of RGUKT and TITA experts. It was also agreed that a steering committee would be set up comprising of members from TITA as well as faculty of RGUKT…," said IIIT Basar Vice Chancellor Sathyanarayana.

In TIIC, start-ups can be established in digital media, IOT, solar energy, smart cities, telecom services, mobile technologies, cloud analytics, healthcare, robotics, learning management system, artificial intelligence etc, it added.

City Spotlight: Investing in India’s Hyderabad

Source: November 11, 2016  India Briefing

By Melissa Cyrill

Hyderabad is the capital of the south Indian state of Telengana and the de jure capital of the state of Andhra Pradesh. Telengana is the newest of the 29 states in India and was awarded independent statehood from the larger state of Andhra Pradesh on June 2, 2014. Hyderabad will be joint capital for both states for a period of ten years till 2025.

Located along the banks of the Musi River and covering an area of 250 square miles, Hyderabad is home to a population of about 6.7 million and a metropolitan population of about 7.75 million, making it the fourth most populous city and sixth most populous urban agglomeration in India. At an average altitude of 1,778 feet, much of the city is situated on hilly terrain around artificial lakes.

Hyderabad was established in 1591 under the Qutub Shahi dynasty and subsequently expanded by the Nizam rulers who followed. The city has a rich historical legacy that is reflected in its arts and architecture, forts, museums, cuisine, and traditional bazaars (markets), making for a thriving tourist economy. Adding to the city's cultural appeal is the fact that it is the center of the Telegu film industry, which is India's second-largest producer of motion pictures. Hyderabad is also historically known to be a pearl and diamond trading center and continues to enjoy the moniker 'City of Pearls'.

RELATED: Pre-Investment, Market Entry Strategy Advisory Services from Dezan Shira & Associates

Administration

The Hyderabad Metropolitan Development Authority (HMDA), formed in 2008, merged the following entities – Hyderabad Urban Development Authority (HUDA), Hyderabad Airport Development, Authority (HADA), Cyber Abad Development Authority (CDA), and Buddha Poornima Project Authority (BPPA). HMDA coordinates the development activities of the municipal corporations, municipalities, and other local authorities like the Hyderabad Metropolitan Water Supply & Sewerage Board. It also manages the Hyderabad Management Development Fund, which allocates finances for the plans and programs of local bodies undertaking the development of amenities and infrastructure facilities.

Education

Hyderabad's educational infrastructure attracts students from all over India and internationally (especially students from Africa and the Middle East). The city hosts two central universities, three deemed universities, and six state universities – Osmania University; University of Hyderabad; Jawaharlal Nehru Technological University, Hyderabad; International Institute of Information Technology; Indian Institute of Technology, Hyderabad; Tata Institute of Fundamental Research, Hyderabad; Birla Institute of Technology and Science (Pilani), Hyderabad. Other institutions include the Nizam's Institute of Medical Sciences, the Institute of Public Enterprise, and the National Academy of Legal Studies & Research (NALSAR). Hyderabad is also home to the Maulana Azad National Urdu University and the Dr. B.R. Ambedkar Open University.

Economy

In 2012, Hyderabad became the fifth largest contributor to the country's gross domestic product (GDP) with a total output of US$ 74 billion. A huge push towards industrialization during the twentieth century led to major Indian manufacturing, research, and financial institutions getting established in Hyderabad, such as the Bharat Heavy Electricals Limited (BHEL), the National Geophysical Research Institute, and the Centre for Cellular and Molecular Biology. The city's strategic location in south central India additionally resulted in the establishment of pharmaceutical and electronic industries in the 1970s, and subsequently, the development of the information technology and biotechnology sectors.

Key Sectors for Investment

IT Sector:

Hyderabad's IT sector is renowned for being the world's leading center for information technology. Hyderabad's IT sector includes IT-enabled services (ITeS), business process outsourcing (BPO), entertainment industries, and financial services. Collectively, the city's IT and ITeS exports crossed US$ 11.13 billion (Rs 750 billion) in 2015-2016, growing by 13.26 percent over the previous financial year. 22 percent of NASSCOM's (National Association of Software and Services Companies) total membership is based here.

Major multinational IT, ITeS, and financial services firms located in Hyderabad are Microsoft (the largest R&D campus outside the U.S.), Google, Amazon, IBM, Oracle Corporation, Yahoo!, Dell, Texas Instruments, Hewlett-Packard, Facebook, Tech Mahindra, Infosys, Wipro, Cognizant, Tata Consultancy Services (TCS), Apple, Deloitte, Franklin Templeton Investments, GE Capital, Accenture, HSBC, S&P Capital IQ, Ernst & Young, KPMG, Capgemini, and Genpact, among many others.

The Hyderabad Information Technology and Engineering Consultancy City (HITECH City), also known as the technology township Cyberabad, is spread across 200 acres of land – covering the suburbs of Madhapur, Gachibowli, Kondapur, Manikonda, and Nanakramguda. This township is one of the premier IT, Engineering, Health Informatics, and Bioinformatics hubs situated in the country. Newer investments in Hyderabad's digital and related economic infrastructure includes the upcoming IT investment region jointly being developed by the Government of India and Government of Telangana – along the model of the Shenzhen SEZ in China – called the Information Technology Investment Region (ITIR). ITIR aims to attract the IT, ITeS, and electronic hardware manufacturing sectors, and will be spread over 50,000 acres in and around Hyderabad. It will include SEZs, industrial parks, free trade zones, warehousing zones, and export-oriented units in three separate corridors.

Bio-pharmaceutical Industry:

Hyderabad is a key pharmaceutical and biotechnology hub and is called the country's pharmaceutical capital and "Genome Valley of India". The incorporation of the Indian Drugs and Pharmaceuticals Limited (IDPL) in 1961 provided the foundation of the city's pharmaceutical industry, and later in the 1990's the industry's expansion was facilitated by the formation of the Indian Institute of Chemical Technology, National Institute of Pharmaceutical Education and Research, Centre for Cellular and Molecular Biology, and National Institute of Nutrition along with other regional institutions in the bio-pharma sector. In 2008-2009, the bio-pharma industry's exports reached US$ 3.1 billion. Top bio-pharma companies based in Hyderabad include Dr Reddys Laboratories Ltd., Divis Laboratories Ltd., Granules India Ltd., Suven Life Sciences Ltd., BioGenex Life Sciences Pvt Ltd., and Lonza India Pvt Ltd., among others.

The Genome Valley, 'Fab City', and the 'Nano Technology Park' offer the infrastructure for Hyderabad's bio-technology sector, which has attracted regional companies and MNCs to set up their offices, warehouses, and establish R&D centers. The Genome Valley itself (spread across 231.66 square miles) has developed as a cluster for biomedical research, training, and manufacturing. The Genome Valley covers the suburbs of Shamirpet, Medchal, Uppal, Patancheru, Jeedimetla, Gachibowli, and Keesara. It also includes the IKP Knowledge Park (200 acres) and the Alexandria Knowledge Park (300 acres), which provide innovation corridors (for laboratories), multi-tenanted research buildings, incubation facilities, build-to-suit blocks, and industrial plots.

Real Estate Sector:

The commercial market structure of Hyderabad is defined into 4 sectors—The Central Business Districts (CBD), the sub-central business centers, the neighborhood business centers, and local business centers. According to a 2016 report by ICICI Property Services, Hyderabad is witnessing fast-paced growth in residential real estate and an increase in off-take of office supply space. There has also been 'a rise in the consumption of apartments in multi-storeyed buildings by buyers moving into Hyderabad from other cities', due in most part to a sizable migrant population working as IT/ITeS professionals. The report's survey notes that the maximum supply and absorption in Hyderabad's residential market falls in the price bracket of US$ 29.68 (Rs 2000) per sq. ft. to US$ 44.52 (Rs 3000) per sq. ft. primarily comprising of units developed by local developers, with the most preferred segment being three bedrooms-one hall-one kitchen (or 3 BHK) apartments. The suburbs of Gachibowli, Kukatpally, HITEC City, and Madhapur have witnessed the highest activity with the majority of their new real estate projects belonging to the price range of US$ 59,365 (Rs 4 million) to US$ 74,206 (Rs 6 million).

RELATED: India's Rankings in the World Bank's Doing Business Report 2017

Doing Business in Hyderabad

The World Bank ranks Hyderabad second after Ludhiana in its estimation of the top 17 cities in India for ease of doing business in 2016; this performance has been consistent since 2009. The latest ranking is complemented by the state-wise assessment spearheaded by the Department of Industrial Policy and Promotion (DIPP), which puts Telengana and Andhra Pradesh states jointly at the top. Hyderabad's ease of doing business ranking is based on parameters such as starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. These parameters also figure in the World Bank's annual Doing Business Report, although India's ranking quantifies only New Delhi and Mumbai's ease of doing business scores.

Observations

Hyderabad is both a historically and culturally vibrant city as well as the beneficiary of an early industrialized landscape and sophisticated educational infrastructure. It enjoys easy connectivity by road, rail, and air, which will further be boosted by the upcoming metro rail network. High performing sectors in the city include tourism, IT, bio-pharmaceuticals, electronics manufacturing, education, and real estate. The city's impressive investment prospects are greatly cemented by its pro-business regulatory environment, infrastructure, and economic diversity, which continue to attract the confidence of multinational and regional enterprises.