Real Estate Hyderabad
In its road to development, Hyderabad has stretched its municipal
limits towards north, northwest and west. The construction of
the international airport, the Outer Ring Road and the elevated
expressway corridor has pulled the city on its southern limits
as well. The residential localities in the heart of the city are
giving way to commercial and retail spaces.
Corporates prefer to move into ready-to-occupy properties before
moving into a customized facility, as they need some incubation
time before expanding their operations.
Hyderabad has shared 60% of the action in the commercial property
market with Chennai and Bangalore in the last 2 years, with 2.7
million sq. ft leased out in 2005. The nature of development is
shifting from speculative to demand based. Cyberabad in West Hyderabad
covers 51.70 sq. kms, and is host to Infosys, Microsoft, Google,
Wipro and Dell, amongst others.
Cushman and Wakefield has forecast that Hyderabad’s growing market
share will erode the NCR and Mumbai market share of commercial
property. By the end of 2007, Hyderabad will be having 12% of
the property market in India, second only to Bangalore.
Taller structures will be now be permitted in Banjara Hills,
Jubilee Hills and Nandagiri Hills. The restriction on larger than
10 metre structures has been lifted and developers can build upto
3 floors plus stilt and cellar. Builders are upbeat that this
would have investors queue up for the flats which range between
Rs. 50 to Rs. 75 lakh. The Andhra government is also considering
a proposal to increase the coverage area for smaller plots below
1000 sq. metres to 40%.
As for the residential sector, supply is able to meet the demand,
and the western suburbs are undergoing a major transformation.
Two integrated townships along the Outer Ring Road at Tellapur
and Maheswaram village on 600 acres each under the public-private
partnership model will be constructed. In the southern suburbs,
most of the development is charecterised by residential layouts
and plots.
Appreciation
The The current boom in the realty sector has still not been
able to satisfy the growing demand from corporates looking for
ready-to-occupy properties. IT and ITes will continue to drive
the market, and in the next two years, BPOs and call centres,
software offices and back offices for financial institutions
will occupy the maximum space. Property consultants expect the
upward trend in prices to continue, even as the State Government
frees up land in different parts of the city and the outskirts.
Land availability will facilitate the creation of corporate
office space.
In Begumpet, Panjagutta, Ameerpet and Banjara Hills, the new
CBDs of Hyderabad, capital prices range from Rs. 3500 per sq.
ft to Rs. 4500 per sq. ft. The old CBD areas in Abids, Koti, Himayathnagar
and Nampally have slightly lower rates, as new establishments
prefer the new locations. Rentals in prime areas range between
Rs. 30 to Rs. 45 per sq.ft per month, while Hitec City commands
Rs. 35 to Rs. 38 per sq. ft. Rentals and capital values have firmed
up of late, with Ness from Israel, Citigroup TCS and Honeywell
moving into the city
Retail is pushing rates up, and top brands on 1.5 million sq.
ft will occupy space spread over 12 malls by 2008-09. DLF, Rahejas,
IJM, GVK and IVRCL are investing in malls in the city. Rental
values for retail spaces range between Rs. 35 to Rs. 60 per sq.
ft. per month
2006 witnessed a 15-20% increase in capital and rental values
in all the residential micro markets. Upcoming residential projects
are Fortune Fields by Indu Projects, Hill County by Maytas and
SMR Vinay City by SMR Builders. Rates in Central Hyderabad range
between Rs. 3308 to Rs. 4590, but premium neighbourhoods like
Jubilee Hills fetch rates between Rs. 16200 to Rs. 21600, per
sq. foot.
NRI Real Estate Trends
There has been a surge of Indians returning home, as MNCs find
NRIs an attractive resource pool. Among others, Motorola has a
rewarding Return to India program for its returnees for the Hyderabad
centre.
For those planning to return to India, and settle in Hyderabad,
real estate developers have not been found wanting. Omega Shelters
is working on a niche project, offering villas for 12 crores in
Kompally. The Hyderabad residential property market has a choice
of the best luxury apartments that Indian real estate can offer.
Developers are setting new benchmarks, and are confident that
if they can match up to the tastes of NRIs, they would be able
to face up to the competition posed by international developers
setting up operations here through joint ventures.
A growing number of Indian developers are naturally targeting
the affluent NRI markets, especially in the Gulf, the UK, the
US, Singapore and Hong Kong. NRIs are eager to invest
in residential properties here, and earn handsome rentals on them.
Hitec City, Kondapur, Guchibowli, Miyapur, Kukatpalli, Madhapur,
Jubilee Hills, Banjara Hills, Somajiguda, and Srinagar Colony
are dotted with well- appointed, richly furnished apartments,
villas, bungalows for returning Indians. Rolling Meadows is a
boutique project coming up at Kokapet, Manchirevula.
Photo: Financial District, Hyderabad – Skyline featuring Aparna Zenon and by iMahesh, licensed under CC BY-SA 4.0, via Wikimedia Commons.
