I scouted for investment worthy property in Hyderabad few months ago - for long term. The prices are pretty much hyped over. You can comfortably haggle from 50% of the quoted price.

Every one I have met discouraged me - surprisingly some agents I met too were not very positive either . I myself was not convinced that Hyderabad can carry the 'Metro status' . The infra structure is dilapidated. There is this Telangana nuisance because of which one by one companies are moving out of city. I think it is just a matter of years before Hyd goes back to it's Nizam era sh^t hole. The education infrastructure seems to be pretty fffed up as students loss academic years because of this unrest. Some say many teachers are in the agitation and the academic institutions seem to be pretty ffed up. Same the case with businesses.

My friends who are born and brought up and Hyd are moving out for lack of opportunities. I wonder if Hyd which was giving tough competition to B'lore as IT capital could stand its ground as a city in future.

Also there is a huge huge political and mafia type groups in Hyd who encroach properties left right and center. Most of them are illegal. There are some old pockets of the city where if you can find good resale flat, then it is worth buying - just for end use. There is no hope of investment.

There are instances where same property was sold to more than one person. I was strongly suggested to avoid putting any money for investment in Hyd.
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  • I do not see how the above articles are different from 'REAL ESTATE TIMES' supplements of newspapers on Saturday.


    These are news articles that are regularly printed in the Infotech sections of business newspapers.

    Real estate magazines are the ones that hype out a particular location claiming some palce is 5 minutes from a airport, 10 minutes from a future golf course, A new metro line is being planned to come up in 10 years etc., If you cant differentiate that then even the god cant help you.
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    IREF was put together for people to come together and help each other, collaborate and discuss in a positive way – not bash on someone because you don't like their idea, or because they don't share the same views as you. We are big into the free speech idea here. So you're free to say what you think – but do it in a constructive and positive way. We encourage mature debates – discourage childish arguments. Personal attacks, insults, rudeness, threats, name calling or unnecessarily inflammatory posts will NOT be tolerated. Common courtesy, politeness and respect for fellow members, along with constructive posting of opinions are essential in preventing posts from being edited and/or deleted, or having threads locked. Whilst we encourage healthy disagreement/debate, please maintain respect towards fellow members at all times
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  • Hi Dubyskin, and risingsun

    I can say, you both are correct, but i am giving my personal observations and experiences.

    Hi rsingsun, i am also big fan of hyd like you. I worked one yr in (IT) hyd and last 5 yrs in chennai. Beleive me, if you ask me which city i like, even in my dreams i vote for Hyd 100 times stronger than chennai. I am not able to like this chennai city even after 5 yrs stay. But one thing boss, whatever our personal interest is, we have to accept truths.

    Yes, Hyd is not in such a good position, if we speak in bitter way, it is going down (atleast in terms of IT, which was main source for its rise.) I will give u some points to digest it

    Buses from my town to Hyd/chn,

    2006 : hyd - 5, chn -2
    2009 : hyd - 9, chn - 3, during festive season extra buses, hyd - 4-5,chn1-2.
    2012 : hyd - 6/7, chn - 8,festive season, hyd nardly1/2, chn atleast 4.

    the flat cost in IT area in chn went up 3000sqft to 8000sqft, hyd i dont know exactly, but not defentiely this much hike. and there are areas in chn, which shoot up 4000 to 12,000 sqft. If you dont beleive me, you can check with u r frnds in chn. I know a buddy from hyd, who sold house in srinagar colony, and bought a house in outskirts here (where no strret lights, drinage) and got very good return and happy with the decision.

    One of my frnd's bro got married to a girl working in hyd infotech, so he started searching for a job in hyd from bang. he got 1 call after 3 months, but got atleast 10 calls from chn/bang for same time. it is not a rare technology, it is coomon technology only he is working. so finally both moved to chn here and renting a house here.

    No of andhra messes near to my office in 2006 - 2009 : 1 (Nellore mess)
    now 2012: 5, 3 nellore, 2 guntur messes.

    I know lot of telugu ppl bought house by loan here , after trying very hard to asses the hyd position. Now even hyd starts growing, it is very tough to get all the investments back. For a flat cost here in outskirts, u can buy house there in begumpet, with more sqft size.

    Very simple analysis, just check IT exports from all main cities, u will know we are going to get behind even some north cities. already chennai crossed us.

    Even i am also sad for this boss, what to do. we have to accept. Still if you dont beleive me, just come to IT area in chn, just wish 10 ppl randomly in telugu, u will get response back in telugu atleast from 4 ppl. i bet you.

    in 2006, telugu movie used to release in 1 theatre in chennai, now atleast 6 theatres, bare minimum. All these people should have been in hyd, if it was in right track.

    I am not great fan of any politician, but YSR death sends our state atleast 5 yrs back, if he was there, may be this t-issue would not have aggratvated, even if happened, he would have handled it.

    My mother asked me atleast dozen times in last 2 yrs, why cant i transfer to hyd or bang. She stays in andhra , in my native town, but still she doesnot like chennai as my stay. But even if i try, i am not sure i can get same job like this, with good growth in hyd. Anyway, i am going back to US soon.

    I accept hyd is growing , but in very slow pace.

    When a batsmen scores 20 in 20 balls, it is good score, but if other side batsmen scores 100 in the same 20 balls, no body appreciates this batsmen. may be say, good support. thats it. Where as hyd is scroing only 10 out of 20 balls in IT growth.

    But i am praying god, atleast now this issue gets resolved. I like even if they give t'gana, at end of day, i am a indian and can stay any city in the country. Like many telugu ppl here , i dont want my kids go to school and learn tamil instaed of my mother tounge (Ofcourse kids in hyd itself talking only in english because of their parents).

    I dont want pay tax to other state, keeping aside my state which gave me free education in my town govt school.
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  • Originally Posted by srk0447
    Hi Dubyskin, and risingsun

    I can say, you both are correct, but i am giving my personal observations and experiences.

    Hi rsingsun, i am also big fan of hyd like you. I worked one yr in (IT) hyd and last 5 yrs in chennai. Beleive me, if you ask me which city i like, even in my dreams i vote for Hyd 100 times stronger than chennai. I am not able to like this chennai city even after 5 yrs stay. But one thing boss, whatever our personal interest is, we have to accept truths.

    Yes, Hyd is not in such a good position, if we speak in bitter way, it is going down (atleast in terms of IT, which was main source for its rise.) I will give u some points to digest it

    Buses from my town to Hyd/chn,

    2006 : hyd - 5, chn -2
    2009 : hyd - 9, chn - 3, during festive season extra buses, hyd - 4-5,chn1-2.
    2012 : hyd - 6/7, chn - 8,festive season, hyd nardly1/2, chn atleast 4.

    the flat cost in IT area in chn went up 3000sqft to 8000sqft, hyd i dont know exactly, but not defentiely this much hike. and there are areas in chn, which shoot up 4000 to 12,000 sqft. If you dont beleive me, you can check with u r frnds in chn. I know a buddy from hyd, who sold house in srinagar colony, and bought a house in outskirts here (where no strret lights, drinage) and got very good return and happy with the decision.

    One of my frnd's bro got married to a girl working in hyd infotech, so he started searching for a job in hyd from bang. he got 1 call after 3 months, but got atleast 10 calls from chn/bang for same time. it is not a rare technology, it is coomon technology only he is working. so finally both moved to chn here and renting a house here.

    No of andhra messes near to my office in 2006 - 2009 : 1 (Nellore mess)
    now 2012: 5, 3 nellore, 2 guntur messes.

    I know lot of telugu ppl bought house by loan here , after trying very hard to asses the hyd position. Now even hyd starts growing, it is very tough to get all the investments back. For a flat cost here in outskirts, u can buy house there in begumpet, with more sqft size.

    Very simple analysis, just check IT exports from all main cities, u will know we are going to get behind even some north cities. already chennai crossed us.

    Even i am also sad for this boss, what to do. we have to accept. Still if you dont beleive me, just come to IT area in chn, just wish 10 ppl randomly in telugu, u will get response back in telugu atleast from 4 ppl. i bet you.

    in 2006, telugu movie used to release in 1 theatre in chennai, now atleast 6 theatres, bare minimum. All these people should have been in hyd, if it was in right track.

    I am not great fan of any politician, but YSR death sends our state atleast 5 yrs back, if he was there, may be this t-issue would not have aggratvated, even if happened, he would have handled it.

    My mother asked me atleast dozen times in last 2 yrs, why cant i transfer to hyd or bang. She stays in andhra , in my native town, but still she doesnot like chennai as my stay. But even if i try, i am not sure i can get same job like this, with good growth in hyd. Anyway, i am going back to US soon.

    I accept hyd is growing , but in very slow pace.

    When a batsmen scores 20 in 20 balls, it is good score, but if other side batsmen scores 100 in the same 20 balls, no body appreciates this batsmen. may be say, good support. thats it. Where as hyd is scroing only 10 out of 20 balls in IT growth.

    But i am praying god, atleast now this issue gets resolved. I like even if they give t'gana, at end of day, i am a indian and can stay any city in the country. Like many telugu ppl here , i dont want my kids go to school and learn tamil instaed of my mother tounge (Ofcourse kids in hyd itself talking only in english because of their parents).

    I dont want pay tax to other state, keeping aside my state which gave me free education in my town govt school.


    ------------

    Am sorry. It is long. Boring and makes no sense. I guess you have tried some thing and got drifted away.

    I am not a big fan of any city in general. Its just that I tend to compare the EARNING of a person with the price he/she pays in real estate.

    Indian IT engineer QUALITY is not very famous world over. They come in 100s but productivity is less than 50%. From Hyd there are tons. But again , I request you to take it with a pinch of salt

    But this is not a question of IT industry. It is a question of how much a person earns and how much he/she has to shell for a house. Simple math.

    Suppose you are a SAP architect earning 30 lacs / annum . Your official take home would be 21 lacs. Minus expenses savings would be close to 10 lacs. And mind you, you reached this stage when you are 40. Now, considering that, are you ready to shell out 10 years savings to buy a 3 BHK ?

    And howmany people in this country are IT professional, SAP architects, earning 30 lacs ?

    And howmany so called 'PROPERTIES' are there which are close to 1 crore INR ?

    And will you go invest your money in CHATTISGARH OR ORISSA ? The way outside world looks at Andhra is like they look at Kashmir and Odisha ( naxals). This is the truth.
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  • Sure if you really think about the earnings to the price he/she pays for real estate then you really wouldn't be making statements that you have made before. What were you trying to convey with messages like? (down in the dumps etc.,) Were you trying to say that no one is buying real estate? If thats the case then you couldn't have been more further from the truth.

    Agree there is little/no investor interest in Hyderabad now. But I think it suits the end users well. They would have had to pay more for the same property or worse move to places which have lower values.

    If you think that the realty boom that happened before was because of realty investments from outside then you are wrong. Most of the investment was from with Andhra. So there is no need for statements that are demeaning both for the states that you have mentioned and Andhra.

    Anyway the 1 crore apartments that you are talking about are luxury apartments which atleast 2000 sft in size. Now Hyderabad doesn't just have IT employees. It's got Doctors, Lawyers, Pharma employees,business community etc.,. Plus the connectivity and infrastructure in Hitec City is very high.

    Well the kind of flat sizes selling in other cities are mostly 1200 sft or less. So for those sizes the prices come down to as low as 40 lakhs even in prime areas. And these properties are selling well.

    With all the negativity around, there is Jubilee Hills area that outsiders very rarely hear about. Because these places don't need much advertising. Here the apartment rates are around 6000/sft but can go higher with more specifications. Recession or no recession there is very little fluctuation in prices here.

    And will you go invest your money in CHATTISGARH OR ORISSA ? The way outside world looks at Andhra is like they look at Kashmir and Odisha ( naxals). This is the truth.


    Boss, whatever you think is your problem. But please don't try pass off your judgements as the truth. It's just your perception formed because the only news that seems to come out these days from here is because of some negative incident. Anyway Half Knowledge is always dangerous.

    Once the Telangana issue settles down, there will be very little of those incidents and hopefully more of the good news.
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  • I really dont understand how you could say that real estate is down in the dumps while continuing to say that prices are high??

    Surely something is amiss. If the real estate market has crashed(according to you), surely the prices would also have come down to lesser levels,isn't it? That hasn't happened for now and builders are building newer apartments and people are buying as well.

    If by entire real estate you mean the only plots somewhere in the outskirts then yes, plotting activity has gone down and rightly so because already a lot of area around Hyderabad has been plotted. but there is no activity in them because there are no jobs being s near those areas. And why would someone build a house where nothing exists at the moment when they can get housing inside the city??
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  • Originally Posted by srk0447
    Hi Dubyskin, and risingsun


    Totally understand what you have written. The government has failed miserably in job creation(particularly for the lesser skilled people) in the last 4 years because of the political situation. I would like to see more industrial jobs being created all over the state. But sadly nothings really happening.
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  • Hi Dubyaskin, You are contradicitng yourself. First you said, RE in hyd is very bad and no growth in prices, now you are saying savings to Flat cost is very high.

    If you feel the ratio in Hyd is high, then in chennai it is touching sky.

    Hope you may aware of P/E ratio in stock prices, no investor will buy a stock, just because PE ratio is less, and also dont stop buying the stock because of High P/E. Anyinvestor sees potential in the stock/RE asset, how fast it can grow. If you say Hyd RE growth is less, i will accept. Not very costly.

    Inside andhra , even in a 3 tier towns, one flat is going at 30-40 lacks, so hyd prices are really bottomed out or atleast near to bottom, Whatever the reason.

    That too till this t'gana issue gets resolved, and a new stable govt forms. Once it happens, even if there is more supply, prices will shoot up, just like chn/bang/gurgoan.

    And about kashmir/Naxals, that is purely your understanding, dont generalise it and say whole world is thinking same like you. If everybody is thinking, why these many companies are launching these many mutlistory buildings and people are buying . Are they mad, or not intelligent like you.

    Now, i wish to know, where you zeroed on to buy a RE propeorty. Chn/bang/pune? Or 2/3 tier cities?
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  • Originally Posted by srk0447
    Hi Dubyaskin, You are contradicitng yourself. First you said, RE in hyd is very bad and no growth in prices, now you are saying savings to Flat cost is very high.

    If you feel the ratio in Hyd is high, then in chennai it is touching sky.

    Hope you may aware of P/E ratio in stock prices, no investor will buy a stock, just because PE ratio is less, and also dont stop buying the stock because of High P/E. Anyinvestor sees potential in the stock/RE asset, how fast it can grow. If you say Hyd RE growth is less, i will accept. Not very costly.

    Inside andhra , even in a 3 tier towns, one flat is going at 30-40 lacks, so hyd prices are really bottomed out or atleast near to bottom, Whatever the reason.

    That too till this t'gana issue gets resolved, and a new stable govt forms. Once it happens, even if there is more supply, prices will shoot up, just like chn/bang/gurgoan.

    And about kashmir/Naxals, that is purely your understanding, dont generalise it and say whole world is thinking same like you. If everybody is thinking, why these many companies are launching these many mutlistory buildings and people are buying . Are they mad, or not intelligent like you.

    Now, i wish to know, where you zeroed on to buy a RE propeorty. Chn/bang/pune? Or 2/3 tier cities?


    I suggest you read again, sit and think then post a message.
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  • Hi,
    One good news about Hyderabad is now all the speculators are vanished and only serious buyers are there in the market. Prices are low and affordable now for people who want to occupy the flat for them selves. Yes for investors and speculators there will not be much ROI ( return on Investment). On the other hand Bangalore market is more speculative, so prices are going up. but in the future, the prices in Bangalore will take correction. Guys, every city has its advantageous and disadvantageous. so no point in arguing which is better and which is bad.
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  • I strongly agree that, prices in bangalore are now sky rocketting....nothing is in reasonable budget now in bangalore. I am not sure about any correction in near future. I like both bangalore and hyderabad. Infact, i hear more of my mother tounge (telugu) in bangalore than in hyderabad.:D

    In the meantime, i am looking to invest somewhere in hyderabad for end use, since the RE market is now in slow pace. But, the problem i face is, job opportunity in hyderabad. I am trying for atleast a decent offer from 3 months for hyd location, but unable to get any .

    Hope, situations change ASAP...
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  • Reading the last few posts on this thread, makes me partially inclined to agree with dubyaskin. I have a stake in Hyd real estate and I want it to grow. But right now Hyd is the worst performer in real estate among large Indian cities, it is even worse than Ahmedabad and Kolkata. It has the largest inventory (49 months for the existing inventory to sell out). No one should touch Hyd for a real estate investment, if you want to live it is fine, as a place to buy. For a city and economy of Chennai's size, the real estate there is too expensive, it is risky to invest in Chennai, only Bangalore is holding steady and is a good buy.

    And I agree the infrastructure has crumbled, it is far worse than Chennai, Bangalore, Pune, roads - even main roads are horrible, the existing IT companies are staying but no new companies are moving in and they will not even in the future, as this city is cursed with bandhs, agitations etc.
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