Tredai Property Show, Hyderabad - Oct 2019 & Jan 2020

Notes from visit

Elevated prices from first half of 2019 being quoted - Kondapur premium 8,000/- per sft, Banjara Hills - 8,500/- per sft, Jubilee Hills reaches - 12,000/-
Crowd interest - Subdued

Emerging star - Kokapet in new Gachibowli, Gandipet

Increased Focus - TSPA + Kismatpur, Narsingi + Manchirevula

Virgin market - Mokila + Shankarpalle seeing apartment projects

Emerging budget locality - Patancheru and Mutangi area witnessing new budget gated communities - 3,000/- per sft

Layout preference - 2.5 and 3.5 catching fancy, 4 BHK is now mainstream

Plotting - Medchal + Dindigul, Patancheru + Sangareddy + Sadashivpet, Shamshabad

New introduction - 5 BHKs coming in 4-5 projects - Aparna One, Bollineni Bion, Vamsiram

My Home Villa venture at Tellapur - My Home Ankura

Phase 1

73 acres - 603 villas (G+3 villas, 2 car parks)

Total venture size

400 acres

Location - Tellapur

Others

G+4 club house

Solar street lighting

7.5 acre green belt

Prestige Nirvana - Plotting venture by Prestige Constructions - Budwel, Rajendra Nagar

Budwel IT park is the anchor idea for this venture
Venture size - 41 acres

https://www.livemint.com/companies/news/prestige-group-plans-to-sell-plotted-projects-1550596505159.html


Coming in 2019 - Min Size 267 Sq yds

After the success of Aparna's Western Meadows venture, another branded builder provides a plotted venture.

Remember Aparna's other ventures like Palm Springs and Kompally ventures were not exactly flying. So, as people say, location, location, location - is the clincher

Other sizable builders with plotting ventures - Ashoka, Modi, Vertex near Tukkuguda Airport entrance, Hallmark (upcoming at Srisailam road)

Hyderabad RE hot spots - After Mokila and Shankarpalle

Which one amongst Ghatkesar, Tukkuguda and Adibhatla will fire?

Ghatkesar - USP - Infosys + Raheja; Metro link to Uppal

Adibatla & Tukkuguda - USP - Airport (GMR IT / Business park progressing smoothly), TCS, Some tier 2 players already active - Ramky, Mak, Videocon, Hallmark, Modi

Slowly getting connected to the city - Villa developments have reached Sathamrai village near Shamshabad.

Other big brands joining Shamshabad bandwagon

Aparna has a launched a apartment + multiplex venture here - mid 2020 launch.
Vertex 350 acre Giga City is the first big venture abutting the airport wall behind Tukkuguda village.

Commercial RE Gachibowli, Financial District - Part ownership schemes

Hello friends.

We are now seeing some financial schemes structured as commercial real estate investments. As investors, it is our duty to understand a few facts before evaluating such investments.

1.      Why would somebody price the property more than double the price of a similar property next door?

2.      Why would somebody promise to pay the rent from the very next day of investment, even though the building is not ready yet?

3.      And, the rent is also more than double of what is the running rate in that market.

The first tenet of investment of any kind is to keep it simple (KISS).

Given the tight tax benefit scenario for real estate investments created after the recent budgets, People would tend to look at such commercial propositions and land deals favorably.

The question is - what is the value proposition for you and the builder?

If you're thinking this could be a scam and might not end well, I am with you. But, pray that everything should be fine for those who have put in the money already.

Don’t bank on the media to call out the risks of such investments beforehand, mass media is only interested in what is HOT. They would surely come in with all guns blazing after the scam drowns many but not when it is in the making even though they know it.

It is our duty as investors to fight this war alone. If all of the above sounds something like a

Multilevel marketing scheme starting with Axxxxx and Qxxxx etc.it is not a coincidence. Check if the builder is making payments for past projects from cash flow coming into the current project. I hope RERA is tight enough to monitor this kind of cash leakage.

As an investor, everybody would think that they would have made a smart investment. But unfortunately, in this situation, the customer needs loads of luck and prayers for the smarts of the builder / agency to pull the scheme off without hurting anybody.

Capital preservation is the need of the hour, if capital is allocated to the right product, returns will come – it could be a matter of time. In a hot market, plan for guarding the capital, leave alone over the top (OTT) returns.

Thank you.