Growing Real Estate Market In Hyderabad And Kothur Region

The real estate market is rapidly expanding in Hyderabad. It is mainly initiated with the increasing demand of financial buildings and Information Technology centres in and around the city. Apart from these, the availability of big shopping complexes and good schools has also contributed to the growth of real estate projects in Hyderabad. The open areas lying between Gachibowli and BHEL is highly under developed and has vast expanses of free land open to construction. It is slowly being engulfed by infrastructure companies who are taking up various projects in this zone.

The Tellapur region as well as the neighbouring area, Nallagandla have been developed into good socio-economic centre. Many commercial as well as residential complexes have been set up in this area in the past few years. The area started to attract buyers since last year, with the advent of metro connections. The metro connections shall join this place with the main city in just a wink of an eye. This place has thus become a popular hub of this present day with people and a new locality.

A Home Affair event was held by the Times Property group recently. It was mainly an exhibition of property that offered comfortable and luxurious homes. This Home Affair Exhibition 2014 took place from April 4 to April 6, at WestinRaheja, an IT Park in Hyderabad.

The event was held to introduce chief property builders of the area. It was duly attended by well established builders like Sri Sreenivasa Constructions,Aparna Constructions, Sankalp Corporations and Modi Builders. Planne developers like Vasavi and Vertex NCC Urban, Theme Ambience and Armsburg were also present in the Home Affair.

The exhibition was successful with place for about 1,500 visitors who were interested to find a business platform from these newly emerging projects. This introduced India’s some of the largest builders to property investors. The representatives from MAK Projects were quite enthralled with this meet as their DGM Sales; Ramakrishna has mentioned that they got positive vibes from this well organised property fair. There were already seven visitors to their sites in that short course.

The reaction of SrinathIyer, Sales Executive of Botanika was also quite rejoiced with this affair. They had a lot of visitors in the exhibition, especially on Sunday. The company is into selling high-profile condominiums and had around thirty aspirant buyers to go for a model site visit with them near Gachibowli, after registering in the exhibition stall. They were very excited with the investors as the high range was not a major factor to the buyers.

Another esteemed speaker, Sri Sreenivasa, Krishna Reddy, Sales head, said that they were expecting more onlookers and visitors as the footfall was below their expectations. They expected a lot more faces from the upper middle class section of the city.

A few property buyers were also interviewed to get the outlook from the other end as well. Investor Ramesh Rao was questioned about the Exhibition and he said that hehad come across many such projects which were worth investing in and were available at a reasonable price too. Hence a major fact was underlined that more buyers will be interested in near future to buy property in this zone. Many real estate in Hyderabad are hoping for the same.

Invest in a Residential Plot

Kothur is a small village in the district of Mahbubnagar which is around 35 km away from the main city of Hyderabad. This small area has a lot of residential plots and complexes to offer in the near future. According to the lists, the property value of this place varies from Rs. 5-20 lakh.

These plots are either approved by the Directorate of Town and Country Panning, (DTCP) or Hyderabad Metropolitan Development Authority, (HMDA). Some of the adjacent regions are also approved by the local Gram Panchayat.

The available plots may extend from about 100 square yards to about 300 square yards. The DTCP and HMDA approved plots are a branch of gated communities and have basic facilities like proper drainage, adequate supply of electric and water, open parks with roads pavements and alley.

The plots endorsed by the Gram Panchayat are quite open and devoid of any basic utility factors. These plots are sold at a lesser price as many of the plots lack regular commodities such as proper sewage and supply of water. This area is mainly a favourite of IT professionals and Government employees who don’t want to make a grand investment on plots. The major section of the clients here belongs to the IT sectors of HITEC City, Kukatpally, Gachibowli, Kondapur and so on.

The Telengana issue has harmed the plot deals to a great extent. The plots which were sold at around Rs. 4200 per square yard, a year back have now a value which has dropped down to only Rs. 3600 per square yard. This is a good opportunity for the buyers who are keen on investing at a low financial plan.

This deficiency in price won’t last for long as new important projects by well-known developers like Kirthana Properties, DLF, Vasundhara Projects and many more will soon grow and flourish in this region. Thus due to these land grant projects and upcoming textile industries, the property prices may rise again.

The locality is preferred by investors mostly rather than end users, as the area are still not entirely developed in infrastructural and social aspects like hospitals, banks, schools markets etc. Shad Nagar is a town lying 10-12 km away from Kothur and is enriched with all the nominal facilities needed for livelihood. This land is in close proximity of the Airport but is not approved by the DTCP or HMDA as they lie under prohibited zone while Kothur is not a part of restricted area. Investors can easily invest in a plot around Kothur.

Kothur is located on the Hyderabad-Bangalore Highway or NH-7 and is located 24 km away the Rajiv Gandhi International Airport. There are ample railway stations like the Thimmapur Railway Station, Kothur Railway Station and the Shadnagar Station which joins this place to the main centre of the city.

Builders are now just expecting a stable Government in the upcoming election as it would help in further development of this area.

Mumbai becomes Expensive for Residential Property Buyers

The Indian real estate market has been witnessing a nationwide slump of sorts. This has mainly been attributed to a combination of factors revolving around the state of the economy. The Indian government has done little to revive the sector with cutting edge reforms and policies even though a few bills were passed in the year 2013. As a result, the industry is now awaiting the election results with a view towards praying for the formation of a stable government at the center. Why is this factor important for developers and real estate companies all across India? This necessitates a thorough study into the present condition of the real estate market in India. Firstly and most importantly, real estate is suffering owing to a severe lack of demand. Indian real estate thrived on huge levels of demand and this was considered to be a permanent factor given the levels of growth.

However, the poor economy and other factors have put the brakes on the steady progress of the Indian real estate industry. Why has demand dropped down to such levels? This mainly has to do with economic fluctuations and changing market conditions. Alongside, the extremely high prices of real estate in maximum areas has put paid to any hopes of attaining a home at affordable rates. This is proving to be the biggest reason behind the steadily dwindling demand especially in metro cities and major business hubs of India. On the other hand, suburban areas and projects situated on the outskirts of major cities are witnessing a tiny growth in demand owing to more affordable prices and better transport connectivity. Alongside, these areas are even witnessing an appreciation in their capital value with the steady development of infrastructure and social amenities in the region.

Surprisingly, demand in major cities like Delhi, Mumbai, Bangalore, Chennai and Kolkata has come down to surprising levels. High prices have severely affected the budget housing and mid level housing segment in major Indian cities including the top eight. Alongside, the premium and luxury segments have not been hit as badly as the entry and mid level areas. However, even these projects are struggling to find buyers owing to high prices of land and liquidity crunches. Developers are in a stressful situation right now and the major problem pertains to unsold inventory. Unsold inventory has gone up to unprecedented levels and is steadily piling up for major real estate companies.

Along with unsold inventory, the high prices of land are making it impossible for developers to reduce prices and offer homes at lower costs to buyers. They are now offering various discounts, special offers and other freebies in a bid to clear out their inventory. This makes it a win-win situation for buyers and investors who can afford it. Yet, the expensive nature of real estate purchases cannot be denied especially in a city like Mumbai in spite of forecasted price revisions and corrections owing to a slump in demand.

Mumbai is one city where the cost of acquiring residential real estate may just increase by leaps and bounds. Mumbai residents are praying for price corrections and revisions to take place and at the same time, the values of property in the city are rising steadily day by day. According to a study brought out by the noted real estate advisory and consultancy, Knight Frank India, it has been found that the values of residential land available in Mumbai have increased to the tune of almost 35.2 percent which is mindboggling and astonishing to say the least! The very fact that this has happened in the previous couple of years is another worrying factor. Land which is used for residential development has now become costlier and the increase in these prices is mainly attributed to factors like residential price hikes along with multiple norms of development.

What prospective customers and Mumbai residents do not realize that the values of built spaces have also been influenced by this increase in the values of residential land. Owning a home in Maximum City has become more and more difficult and expensive in the last couple of years and this is one harsh reality that prospective buyers and city dwellers have to accept without any real solution in sight. This is something that has affected the morale of all those aspiring to own a home in India’s financial and business capital. According to Darshan Vyas, Managing Director at True Value Realty, a Vadodra based brokerage firm, the overall pricing of built spaces is one aspect that is dynamic and all movement happens likewise in an effective manner.

According to Vyas, there are two major aspects that influence the cost of any built property these days, namely the cost of construction and the cost of land. The former is one aspect which is by and large stable as far as trends in both large and small cities are concerned. The latter is the factor that makes the real difference in this case. For instance, the cost of land is lower in places like Vadodra as compared to Mumbai owing to lower demand per square feet. High levels of demand and lower supply of residential spaces have now pegged values of land to exorbitant heights.

Values of property too have a relationship that is symbiotic with the values of land. This proportionate growth is behind the sudden appreciation in property values in Mumbai. This premier city is now one of the most expensive propositions for Indian buyers. Prices have largely appreciated to the tune of ten percent and this has even gone up to forty five percent in some areas. Appreciations have been observed in places like Navi Mumbai and Thane among others. According to Mehul Thakur, the Viva Homes director, the annual increase in prices of land in Mumbai is mainly due to the constrained supply of ample land along with the rising demand for quality residential property. The Mumbai real estate market will soon be on an upswing and positive market sentiments will again prevail after the elections.

According to Thakur, affordable housing is a pressing need in Mumbai and realtors should not scale up their prices any further in case of positive market sentiments as this will only serve to dampen the same and lower demand further to unacceptable levels. The focus should be firmly on affordable housing according to Thakur and many other industry professionals and experts. Whatever be it, residential real estate is set to become even more expensive in Maximum City!