Hyderabad Property Hotspots - Driven by Metro connectivity

Great cities in the world revolve around connectivity. And, metro or tubes play a major role. I am sharing the locations that would be touched by the new Hyderabad metro project. 2 Km from any of the stations can present pretty good opportunities if you can strike a bargain because the areas remain not so connected today. Look at areas highlighted.

CORRIDOR 1 - Miyapur to L. B. Nagar

1. Miyapur 2. JNTU College 3. Housing Board Colony 4. Kukatpally 5. Balanagar 6. Moosapet 7. Bharatnagar 8. Erragadda 9. ESI Hospital

10. S R Nagar 11. Ameerpet 12. Punjagutta 13. Erra Manzil 14. Khairatabad 15. Secretariat 16. Assembly 17. Nampally 18. Gandhi Bhawan

19. Koti 20. MG Bus Station 21. Malakpet 22. Super Market 23. Musarambagh 24. Dilsukhnagar 25. Chaitanyapuri 26. Kothapet 27. L B Nagar

CORRIDOR 2 - Jubilee Bus station to Falaknuma

1. JBS 2. Parade Grounds 3.Secunderabad R.S 4.Gandhi Hospital 5.Ram Nagar Junction 6.RTC ' X' Roads

7. Chikkadpally 8. Narayanguda 9. Sultan Bazaar 10.M.G.Bus Station 11.Salarjung Museum

12. Charminar 13. Shalibanda 14. Shamsheergunj 15. Jangammet 16. Falaknuma

CORRIDOR 3 - Nagole to Hitec City

1. Nagole 2. Uppal 3. NGRI 4. Habsiguda 5. Tarnaka 6. Lalaguda 7. Mettuguda 8. Secunderabad

09. Parade Ground 10. Paradise 11. Rasoolpura 12. Prakash Nagar 13. Begumpet 14. Ameerpet 15. Madhura Nagar 16. Yusufguda

17. Jubilee Hills Road No.5 18. Jubilee Hills Check Post 19. Peddamma Temple 20. Madhapur PS 21. COD 22. Hitech City 23. Shilparamam

New Hyderabad Villa projects - So close to the city

Several developers are now taking the Villa projects route to keep their business moving.  Villa projects don't have the dependencies like apartment projects of having minimum bookings to slow progress in a construction.  Whoever pays on time will get his villa delivered.  For instance, the Miyapur - Medchal road is seeing a lot of Villa developments.  The area is very close to the Cyberabad area and was seeing rampant construction activity with scores of apartments coming up but now the Villa projects are the main advertisers on the road. The same is the path taken by builders who have not had a good experience with apartment projects like Manjeera and Mantri.  A lot of builders like Raja Pushpa and Aparna are now preferring to do Villas and Apartments together to keep the momentum going in the location. 

Hyderabad rental market - New breed of renters - Intracity movers

With most of the job creation happening in Cyberabad, the commute time from Hyderabad and Secunderabad has been on the increase because of the peak hour traffic and Metro train construction work. The offices were in Banjara Hills and Begumpet belt then moved to Jubilee Hills and Madhapur and are now to Gachibowli. 

In the past 15 years, the office commute distance has increased from an average of 8-10 km to 25-35 km now.  So, a lot of housing on the Cyberabad side is seeing people, with own property in Secunderabad and Hyderabad, moving in as renters. Many have lived in the original twin cities for generations, but are now planning property purchases or renting out in Cyberabad area.

With the Metro not staring anytime soon and not exactly taking them to their office door step, many people are choosing to move to West Hyderabad - Chandanagar, Kondapur, Gachibowli, KPHB, Miyapur.

Hyderabad real estate market - No new lauches - Rents bound to go up

With Hyderabad in a freeze mode, no new launches are happening.  I guess, the builders will wait till August to understand the mood of the market.  The builders with standing inventory/ finished stock need to clear the stock. But, the supposedly more intelligent buyer also will wait out till he sees a good bargain down from current levels. So, most likely, the houses available for rent will be drastically down and the rents will start inching up at good pace. People looking for cheaper rents with the freeze mode in real estate would be disappointed. 

Lower sales mean Higher rents.

Hyderabad - Kukatpally - Gulf Oil Township

Gulf Oil Corporation Limited has entered into a joint development agreement with Hinduja Estates Private Limited to develop 76 acre of the former’s land at Kukatpally in Hyderabad. The whole master plan of 100 acres has been submitted for approval to GHMC in May 2016.

Hinduja Estates will invest around Rs 3,500 crore in the township project, which will house residential and commercial complexes.

A part of the deal with GHMC for permissions, a 100 ft road has also been laid bang in the middle of the land connecting NH 9 to Rainbow Vistas at the back of Gulf Oil compound.  This road is now ready and the company is awaiting stable market conditions to announce the project. The raod is seeing heavy traffic and the company is expecting 85-90 crores compensation from GHMC for the road.

The township will have offices, apartments, IT parks and Malls along entertainment and maybe hospital as well.

Check this presentation for what to expect...

http://www.hindujarealty.in/images/hrvl-presentation02.pdf

pg 21 to 25

New Aparna projects - Mid market Category - Hyderabad real estate

Aparna is going to launch a new project called Parnika (Villas) and Elina (Apartments) on the road connecting Botanical garden to HCU. It is closer to HCU Bus Depot after Maseed Banda Village. Aparna has another project by the same name Elina in Bangalore as well. The 30 acre venture is ready for launch.  The model house and marketing office are ready near the Sutherland BPO office behind Indian Immunologicals and close to RV Panchajanya.

Aparna is planning another project called Cyber Life in Nallagandla. It will benefit from the developed infrastructure and liveability as it will finish only in 2018. It surrounds the Citizens Hospital.  

Telangana done - What next for real estate in Hyderabad - March 2015

In Hyderabad, residential real estate looks good compared to the pathetic state of retail real estate and office real estate.  Office real estate, on the verge of bounce back, is decent and has no excessive capacity built up.  Retail real estate seems to be cutting losses by bringing rentals down and increasing occupancy. 

Residential rental yields seem to be inching up as not many units
1. were built
2. not enough were sold (if sold, mostly for end-use)
3. so, not enough rented out (a tight market for rentals)

But, I don't think the activity is going to pick up in hurry. June 2015 is crucial.  March 2015 will see close of the current academic year and any petty business dealers or govt. servants of Andhra Pradesh planning to move out will result in the demand scenario becoming clear.

There might be some rub off effect in already frozen market providing opportunities in finished and second sale market.  Look out....

Update March 2015 - There is pressure on rentals even in the West of the city home to the IT crowd. But, the office market is reporting good absorption.  If the new office place taken is for net-net new business- should result in new hiring and the demand for housing coming back in 6-8 months.  The housing market is poised to go through some more pain.