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.