Narsingi - Puppalaguda - The next big deal?

HYDERABAD, DECEMBER 16:  

In spite of the slowdown in the residential market in Hyderabad and its environs, there is positive outlook, with the commercial space shaping up well and residential segment set to follow, according to a study released by real estate consultancy firm Knight Frank.

An upcoming residential area Puppalaguda–Narsingi cluster close to the IT hub of Hyderabad is projected to witness price appreciation by 2020, the report observes.

In the second edition of its Residential Investment Advisory Report 2016 for the Hyderabad market, Knight Frank India identifies the top investment destinations in Hyderabad for the next five years (till 2020) and also reviews the performance of the previously recommended destinations.

Strong demand and restricted supply, coupled with proximity to the employment hubs of HITEC City, Kondapur, Kothaguda and Gachibowli, are the primary reasons for the emergence of this cluster as an investment destination.

This is the most affordable residential cluster within a 15–20 minute commute to the prime employment hubs. Additionally, 10 million sq ft of office space is expected to be added in the next five years, which would create incremental employment of approximately 125,000. This is likely to further support residential price growth in these locations.

Uppal and L.B. Nagar in the east and Falaknuma in the south are also expected to see significant improvements in terms of connectivity through the metro. However, locations with comparable prices in the west will prove to be strong competition, as they are in close proximity to the western employment hubs, the report observes.

The prevailing prices in Hyderabad are the lowest among all the frontline cities of India. Excellent connectivity and well-developed infrastructure have ensured that residential prices in most locations have remained in a similar price band.

http://www.thehindubusinessline.com/news/real-estate/hyderabad-realty-catching-up-with-peers-in-residential-front-knight-frank/article7996846.ece

Tellapur - Can it be the next Madhapur?

Tellapur technocity project seems to be moving back to life slowly.  The consortium - NCC, Tishman Speyer and ICICI Bank - seem to be trying to kick start their 100 acre project.  If you recollect, the project was a 400 acre project intially bid for 1600 cr but the advaent of the slowdown made the bidders to request the government to allot only 100 acres for which they had paid 400cr (part payment of 1600cr).  The rest of the land is now with the government and can become another Hitec City.  The government is keen to handover land free of litigations to the consortium and hope they move to take action. The rest of the land has some litigations, so government needs to consolidate it.

Tellapur is home to some of the best villa projects apart from the Shankarpally-Gandipet stretch now. Very few aprtment projects are around except for the jinxed Aliens Space Station project.

Villas - Rajapushpa Lifestyle City, Vision Urjith, The Perch, Tudor Villas, Mayfair Villas, Bloomfield Ecstacy, Radhey Sanctia, Vajram, Infinite Homes.

Apartments - Cyber Welfare Apartments, Ozone Heights, Aliens, Honey Dew

Mr. KTR has been scouting for land to build newer facilities like Hi Tech city III, Data center park etc. Tellapur, Nagulapalli and Puppalaguda are in contention.

Narsingi - New Project - Ramky One (Astra)

Ramky One Wave is likely to be launched at Narsingi junction in the vicinty of NCC Urban and PWS projects.  It is a 5+ acre site with 4 high rise towers. 20 floors. The site is next to Vertex Panache. See attached.

Alekhya Homes - Trying a new model

Alekhya Homes is doing 2 sets of developments that display a new thinking.  The company is trying to build a gated community but with out the risk that comes with huge gated development.  The company has struck deals at Hafeezpet near Sairam towers on the Manjeera pipeline road and near Lanco hills (Sai Aishwarya Layout) to develop contiguous pieces of land.

The company is building small blocks G+4 on individual plots of a developed layout but have gathered large sections of the layouts so that they create a seamless look and feel to the entire locality and provide premiumness with their known penchant for superior aesthetics. The area in Hafeezpet is 31 acres so we are talking about a lot of apartments to be built by the builder overtime in a concentrated space. And in Manikonda Lanco hills area about 17 apartments. As he sells block after block the risk is low and he can continuously monitor the market to adjust his plans. 

Aparna Westside at Nankramguda

The complex is a single block coming up near DPS and Carlton Creek.  Priced at 4,700/- + per sqft. On par with Lanco Hills pricing.

Provident Housing Kenworth - 1,2,3 BHK at Rajendra Nagar

Provident, the affordable housing company of Puravankara, is launching a 2300 unit 20+ acre community near PVNR expressway.  Prices start from 25 lacs.
Quoting at 3349/- per sqft in prelaunch.
Actually, they intend to do a book building from 3349/- to 3700/- per sqft and decide on a price.  
Likely to be delivered in phases in 2019 and final project closure by 2021.
1 BHKs currently not open to booking.

Jan 2018 - The planned IT park in Budvel should provide momentum to the project.

April 2018 - 1 BHKs are open for booking and are very compact in size. Needs lot of improvization to make them fit the Hyderabadi mindset.

What is G.O. 111

Govt Order 111 is an enactment to protecting the Gandipet and Himayat Sagar lakes.  About 84 villages in the vicinity of these lakes, covering 10 km radius were barred from embarking on any commercial or residential land development.

So, this area, though stones throw away from APPA junction on ORR has been bereft of any commercial development. I am sure many travelling to Chilkur would have wondered why the stretch has not seen any residential or commercial development.  Some developers have used the land parcels to erect Engineering colleges, Schools and Resorts. 'The GO is mis-interpreted/ abused by some realtors to put up these so called non-commercial ventures. Many small time developers have developed illegal layouts here and sold to gullible small time investors.

The campuses of TCS and Cognizant had to go all the way to Adibatla because all the land after Narsingi and Manchireveula falls in this zone. But, increasingly many IT corporates are demanding land close to Gachibowli and not interested in far off places like Pocharama and Adibatla.   So, we have to see what the government now does with GO 111.  The greens and NGOs are fighting very hard to maintain status quo.

A list of the 84 villages is provided here for your benefit.  Take a note and beware!!! 

www.appcb.ap.nic.in/download/G.O.No.111%20M.A..doc

You can notice the area in the below graphic from HMDA master plan 2031. As the land prices around ORR touch the sky, naturally some developers would come up with unauthorized farm land layouts in this area quoting a discount of 50% of the prices that exist in nearby HMDA approved layouts. Also, notice, why there are no projects/ layouts between Kokapet and Mokila a 10 km stretch between Exit 1 (Financial district) and Exit 2 (Kollur) on ORR.

SMR One Holdings - Projects

Ongoing
- SMR Harmony County at Bandlaguda near APPA junction on Expressway to Airport.
- Commercial project at Miyapur on national highway next to Hemadurga Towers
- SMR Iconia to be launched shortly.  The project actually was named Bharat Iconia and backed by Lehmann Brothers. This was before Lehmann came down and the financial crisis broke out.  So, I am talking about 2009.  The project has structure standing since the year 2009-10 and now is being brought back to life by SMR.

SMR has similarly resurrected a project in Miyapur after the structure lay idel for sometime and the project is SMR Vinay City.
 

IKEA buys land in Hyderabad; moves closer to open India store

http://economictimes.indiatimes.com/industry/services/retail/ikea-buys-land-in-hyderabad-moves-closer-to-open-india-store/articleshow/48017021.cms


This parcel land is in Raidurgam.  Ikea has been requesting for land close to a metro station. I guess, this land will falls close to the final terminating station at Raidurgam.  The station meant for Shilparamam has been now moved to Raidurgam due to paucity of land at Shilparamam. This line hopefully will serve both the employement hubs of Hitec City and Raidurgam.

See the Hyderabad Knowledge City map provided here to locate both the upcoming metro station and Ikea store location. Both of the locations are right at the Mindspace junction.

May 2018 - Store to open in July 2018. The company had opened a experience store in Sujana Forum Mall in Nov 2017. The experience store will be closed once the original store opens in Raidurgam.

Divya Sree Shakti - Mayuri Nagar - 20:80 Scheme

This project behind Miyapur Metro offer 20% down payment and rest on possession scheme. It is a gated community project with most of the usual amenities.

Famous for providing all amenities included pricing of 31 lacs for 2bhk and 41 lacs and 51 lacs for 3 bhk, back in 2010.

The builder has plans to build commercial buildings - mall, hospital, office complex etc in the same compound.

New High Rise projects in Hyderabad

Vamsiram Builders Jyothi Cosmos in Hi-Tec City

http://www.vamsirambuilders.com/?p=3762

Maruti Rich Ventures near Durgam Cheruvu

http://marutirich.com/index.php?option=com_content&view=article&id=101&Itemid=112

Aditya Constructions has couple of projects coming up in the Nallagandla HUDA locality

http://www.adityacc.com/projects/index.php?project=ongid100010

http://www.adityacc.com/projects/index.php?project=ongid100016

http://www.adityacc.com/projects/index.php?project=ongid100002

Mahindra Ashvita launches a 20:40:40 Scheme

Being a corporate and well run real estate company, Mahindra lifespaces is offering a 20% now, 40% before Feb '16 and 40% on possession scheme.  The project is in advanced stages and the benefit from the scheme might be minimal but the intent to sell the project and move on is clear. The construction progress has also been great compared to other large developments.

Hyderabad RE - Two cases to illustrate the strain in the market

Prajay Megapolis

The company has come up with ads urging buyers to release payments under the heading ' Save the Project'.  This project has not seen any progress.  Conceptualized in 2008, the project is still 3 years away from delivery - A 10 year delivery time!!!!

Who is to be blamed for the impasse, not sure!!! I wouldn't blame the buyers as they are small fish and would not discontinue payments if they see promise/progress.  Buying a home is one's biggest decision and usually they are committed.

Location - Excellent

Sri Tirumala Cyber Residency

The builder is offering flats near Chirec school at Kondapur, and is quoting prices inclusive of amenities and registration.  The prices seem to have been brought down by 8-10%.  A 1290 sqft 2bhk is positioned at 42 lakhs all included. Location - Good

New Road - 100 ft - Connecting Sairam Towers to Heritage Fresh on Botanical Garden Road - Maseed Banda

It will be a parallel road to Hafeepet Gachibowli road. Will connect the Manjeera pipeline road in Madinaguda to Botanical Garden road. Will ease traffic on the Hafeezpet- Kothaguda stretch. The botanical garden road is already in expansion.  It will meet another 100 ft road coming from RTA Kondapur and intersecting the proposed road at the Arbor international school.  A small stretch here is embroiled in legal issues, I guess.  The road currently is in the same state as the KPHB - Hitech city road was in 2004. No real access currently.

Hyderabad RE - Large projects in Financial District and Narsingi stretch

New pre-launch projects include

Hill Crest by Pacifica companies (Gujarat based developer)
Etania by Lansum developers
Prestige High Fields

Other projects include
Rajapushpa Atria (on Narsingi road)
Vertex Panache (on Narsingi road)

Older projects include
PWS De-Lite apartments (Narsingi)
NCC Urban (Narsingi)

Several villa projects are in works in the stretch between Financial district and Narsingi and Kokapet - Gandipet stretch. Legend Chimes and Poulomi Aristos etc.

My Home constructions - New projects

Speaking to TOI, J Rameshwara Rao, MD of the company unveiled his plans to build a mega IT park, bigger than the ICICI Bank building in Raidurgam.  He also hinted at 1600 flats coming up next to the building.

He also disclosed plans to ground the 2000 acre township in Shamshabad in 2016. This plot of land is on the by pass road near Kottur. The MD termed this project as his dream venture. The land parcel already has a ashram and homeopathy institute. Mr. Rao was a homeopathic practitioner in his earlier avatar. He is very closely associated with the holiness Chinna Jeeyar Swamy.

Aparna Serene Park - New project near HCU behind SBI compound

This 20+ acre venture is ready for launch.  The model house and marketing office ready near the Sutherland BPO office behind Indian Immunilogicals and close to RV Panchajanya.

The project called Aparna Serene Park will have 2 and 3 BHKs. 1700 Units.

4900/- base price, 2 car parks compulsory, amenities add up to 10 lakhs.  A 2bhk starts at 80 lacs in the inaugural launch.

Prestige launches 2 new projects

I should admit that the location of both projects is excellent but pricing and other ready to occupy options will weight in on the movement in these projects. The pricing is atleast 20% above the local market.

Prestige High Fields is after Varun motors in Gachibowli ISB road - 2600 units at 4,750 per sft and others.. A 2BHK is approx. 70 lacs . The MD expects a avg price of 5,500 over the construction period going up to 2020.

Prestige IVY League is in Kondapur, next to Google. Launched at 5,950/- + others.  The MD expects 7,000/- over the construction period. Due for delivery in 2018/19.

Update Feb 2015- A 10% drop in prices and increase in ready to occupy options

Hyderabad is currently down 10% from the peak witnessed in June 2014.  The icing on the cake is most ready to occupy buildings are offering these discounts. Buyers can take a decision by Dusshera to buy a house for self occupation.  The number of 'tolet' boards are increasing and there is pressure on rentals as well. So, not a good period for rental yield buying of real estate.