With tenants expanding in all sub-markets, Hyderabad’s office market continued to witness stable leasing activity. Pre-commitments also continued over the month. As leasing activity continued to remain stable in the SBD, Hitec City and Gachibowli, vacancy levels decreased in these sub-markets.
Most of the leasing activity was focused in such locations as Uppal and Pocharam as there is less leasable space available in Hitec City and Gachibowli. Most of the leasing activity was in the form of consolidation of space or relocations by companies already present in Hyderabad. This in turn increased the vacancy rate in many old buildings in the city.
Major transactions during the second quarter included the lease of some 223,000 sq ft by Accenture in the Divyasree Orion SEZ at Gachibowli and that by Amazon of about 125,000 sq ft in Divyasree Trinity at Hitec City.
Other significant office space transactions included Mrops and Vsoft leasing space at My Home Hub in Hitec City and Ivy Computech leasing space in Ilabs and pre-committing to space in Divyasree Omega at Hitec City. Other leases included Vision Tech leasing space at a standalone building at Begumpet and PWC, Media Mint and Infovision leasing space at Banjara Hills in the SBD. Rents and capital values remained stable, according to a survey by Jones Lang LaSalle.
Capital values range from Rs 3,000 to Rs 4,000 per sqft in places like Uppal and Shamshabad, Rs 4,000 – Rs 5,200 per sqft in Hitec city and Gachibowli and Rs 4,500 – Rs 7,500 per sqft in Begumpet and Banjara Hills. Rentals vary from Rs 20 to Rs 60 per sqft per month depending on the location, developer, specification and amenities offered in the project.
According to JLL, leasing activity is expected to remain stable despite political uncertainty over the issues of separate statehood. The less availability of SEZ space will cause rents either to increase nominally in 2012 as a whole following increases in 1Q12. Capital values are expected to increase moderately as leasing activity remains stable. Investment sales are forecast to be less in 2012 as a whole.
Whistleblowers flood anti-encroachment cell with calls to save govt land
HYDERABAD: Giving credence to reports that government land is being encroached by land sharks in the city, especially in the surrounding mandals, an exclusive cell set up for receiving land encroachment complaints by the Rangareddy district administration has been flooded with complaints.
Since September 3, the day the cell with the toll free number 18004250817 became operational, the district administration has received 131 complaints on land grabbing. Of these, nearly 120 complaints were found to be true. In some cases, the revenue department has initiated action to protect land by demolishing the unauthorised structures or removing boundary stones.
Rangareddy district collector A Vani Prasad decided to set up the cell to receive complaints about land encroachment as many acres of prime government land was grabbed by land sharks in the past few decades. This startling fact came to light after a survey by the district administration a few months ago.
Government land in the RR district is about 5.53 lakh acres and over 17,000 acres was encroached upon by land sharks. Of the encroached land, 13,000 acres is agriculture land and 4,000 acres is non-agriculture land used for residential purpose. Most of the non-agriculture land was grabbed in mandals like Balanagar, Qutubullapur, Uppal, Malkajgiri and Serlingampally mandals.
Officials said maximum number of complaints were from Malkajgiri mandal (13) followed by Shamirpet (12). Rajendranagar and Hayatnagar had ten complaints each, Serlingampally and Balanagar mandals reported eight complaints each. Seven complaints poured in from Saroornagar and three were filed from Uppal.
A caller from Gachibowli informed the cell that in S.No 47/50 area encroachers were putting up sheds on a nala. The Serilingampally tehsildar has been asked by the RR district administration to demolish the sheds immediately. Similarly, Hayathnagar mandal officers removed boundary stones from an assigned land (survey Nos. 444, 449) as some people were trying to create a layout and sell the plots. However, in some cases, officials were sent on a wild goose chase and discovered that it was private patta land as per revenue records.
"As soon as the cell receives a complaint, details are passed on to the tehsildar concerned. The officer has to send an action taken report to the collectorate within 24 hours. If the land is in legal dispute, that detail is also incorporated in the report," RR district special grade deputy collector (Land Protection) S Prabhakar Reddy said.
Officials said the cell was yielding good results. All tehsildars, especially those from surrounding mandals of Greater Hyderabad, are now keeping an eye on encroachments. The officials said protection of government land is a continuous exercise. "Since it is a subject of priority for the district administration, protection of government land is reviewed by the collector from time to time," the officials added.
The real estate market in KPHB (Kukattpally Housing Board) colony, Hyderabad, is picking up pace as compared to last year after the buyer interest went down due to prevailing water problems and overcrowding in the locality. Unlike last year, the locality is now witnessing a number of new projects offering multi-storey apartments with all facilities. This is slowly attracting buyers back towards the locality.
Owing to its proximity to various IT hubs such as Hi-tech City, Gachibowli,and Madhapur etc; KPHB Colony has always been one of the preferred residential localities for software professionals in Hyderabad. However, last year, the residential demand in the locality was badly hit due to the water problems. “The real estate values had remained stable for long time without registering any considerable appreciation,” says local realtor Sushant Kumar of Meghna Associates.
The situation is now improving. “Many new gated communities are coming up in the locality which has again attracted the buyer demand,” says a city based realtor Nand Kishore of Sri Renuka Realtors. He further explains, “Earlier the locality largely consisted of individual plots and houses. Demand for these had reduced over a period of time.
“Buyers are going for gated communities in spite of the high rates as compared to independent units”, explains Sunil Kumar of SVS Info Solutions. While independent houses are priced at Rs 2400-3000 per sq ft, the new multi-storey projects are priced between Rs 3000-4300 per sq ft. Even though these new projects are priced higher, buyers are opting for them as these offer 24 hour municipal water supply along with added facilities like 24 hrs security, power back up and other amenities, which is not available in independent houses.
The increased demand for multi-storey projects has led to a rise in the capital values of these units. An average increase of 10 per cent was recorded in the Apr-June 2012 quarter, as per .com
Some of the developers who are delivering multi-storey apartments in the locality include the Manjira Group, Lodha Group, Prajay Megapolis among others. While the projects by Manjira and Lodha are ready for delivery, Megapolis will give possession within next 8-12 months. All these projects offer 3 and 4BHK units in the range of Rs 3000 – 4300 per sq ft.
The locality is well connected to Mumbai-Pune National Highway and Shamshabad airport. Apart from the IT hubs, the locality is also in close proximity to the Jawaharlal Nehru University. The under construction metro, once competed will further boost residential demand as well as the prices.
As per market sources, if the political situation stabilizes, it will further push the residential demand up across the city, which in-turn will positively impact residential values in KPHB colony as well.
Hyderabad: Home to affordable housing destinations, says Ram Reddy of SMR Builders
Hyderabad, as per trade pundits, is very much a buyer’s market compared to cities like Mumbai and Delhi, notwithstanding the fact that political conditions has restricted overall price rise in the city. In Mumbai and Delhi, where real estate prices have gone beyond the reach of the common man, Hyderabad provides succour for those looking for affordable housing in a metro.
“The city offers a gamut of affordable options for investment with a potential for price appreciation given its strong IT and infrastructure presence,” said Hyderabad-based developer, S. Ram Reddy, CMD, SMR Builders (SMRBPL), while answering queries on the topic ‘Affordable Housing in Hyderabad’ on the Gurutalk chat forum on .com. Reddy addressed over 50 users looking for affordable property in Hyderabad.
The queries from .com users ranged from reasonably priced localities and areas in the city, affordable plots for investments, to future prospects and rental yields.
Clarifying doubts about the political scenario in the city, Reddy said that Hyderabad continues to be an attractive proposition for people looking for affordable property, irrespective of political upheavals. “Real estate in Hyderabad is 30-40 per cent cheaper compared to any other metropolitan cities in India. Real estate is on a growth path in the city.” Answering repeated queries from users on the prospects of investment, Reddy pointed out that the “time is ripe now as the price levels are low”.
Dwelling on the areas which offered housing projects in the affordable bracket, Reddy informed, “Narsingi, Rajendranagar and Shamshabad are developing areas. Fast appreciation in values is expected in the near future in these areas.” For those looking for housing in the budget range of Rs 20-30 lakh, Reddy suggested options such as Rajendranagar and Shamshabad in South Hyderabad and Narsingi in North Hyderabad.
Reddy said that the price range for multi-storeys in the affordable bracket is between Rs 2,500- 3,000 per sq ft, i.e. approx Rs 35 -40 lakh for a 2BHK and Rs 45-60 lakh for 3BHK. Areas such as Miyapur, Bachupally and Chandanagar are localities where one can look for properties in the same range.
For investment in plots, he recommended Shamshabad as it has the adequate physical and social infrastructure. “Most of Shamshabad is for residential land use. The price for a plot starts at Rs 2 lakh in this area.”
Apart from Shamshabad, he suggested areas such as Maheshwaram and Srisailam Highway roads, which according to him, have real estate potential. “These areas also offer plots at discounted rates. One can expect 20 per cent returns annually on plotted investment,” Reddy said.
“Shamirpet can also be considered for plots as it is well connected and is considered an employment hub,” Reddy added. As for investments in Nizampet, Reddy cautioned buyers about the ground water and sufficient corporation water facility.
Talking about his company’s roadmap, Reddy said, “Since 25 years we have been providing living areas to the middle income group across Hyderabad and Secunderabad. In the near future, we have plans to develop layouts and provide plots for housing. We also may get into affordable gated communities in and around Western Hyderabad where land is cheaper and provide good prospects for appreciation for investment with a liveable area.”
HYDERABAD: In a significant ruling that would help owners of tiny plots caught up in legal tangles due to the unprofessional attitude of errant builders, the consumer disputes redress forum in Hyderabad has held that land-owners locked in such hassles do also come under the purview of the definition of a consumer and, hence, the consumers' forum has the jurisdiction to address related grievances of 'land-locked' victims.
The forum's bench comprising in-charge president Lakshmi Makena and member G Srinivas Rao passed this order after hearing a plea by a group of eight journalists whose residential sites at Gopannapalli in the city have for the last four years been locked in an unfulfilled development agreement.
Neither has the builder, P Ravi Kumar of M/s Venus & SV Projects, completed the work within the stipulated time nor has he returned the relevant land documents to its owners. Moreover, he has not even responded to legal notices sent to him by the land-owners who invoked clauses of the agreement they had with the former to cancel the same on account of non-fulfillment of terms.
Writing the judgment for the bench, Makena unequivocally stated that these deals were to enable land-owners avail of the services of a builder to get houses constructed for a consideration. To that extent, she said, the land-owner is a consumer and the builder a service provider. Since there is a deficiency of service in regard to construction, the dispute raised by the land-owner is indeed a consumer dispute, Makena concluded, citing a recent Supreme Court order.
Dealing with the facts of the case in hand, the bench said that the developer had failed to implement the project as per the agreed schedule. Starting March 14, 2008, the developer had been given 30 months, including six months grace, in which to hand over the finished project, as per the terms of the agreement.
However, although that deadline, grace period included, had expired by March 2011, the builder is yet to start construction. In addition, he gave evasive replies to the queries of the land-owners. And, finally, when the land-owners knocked on the doors of the consumers' forum, the builder tried to take shelter under technicalities raising doubts as to whether or not a land-owner will fall under the definition of a consumer, etc.
The forum has now held that such land-owners may very well approach the consumers' forum and directed the builder to return within one month the original sale deeds of the plots in question. The forum has also directed the builder to pay a rent of Rs 10 per square feet to each owner retrospectively from March 2011, as that was when the deadline of 36 months had come to an end.
The forum has also directed him to pay Rs 50,000 to each of plot-owner as compensation for the mental agony he has caused them. The forum also imposed costs of Rs 2,000 on the builder to be given to the plot- owners in litigation charges.
Guntur: The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) allegedly sold 100 acres of land at Mambattu village in Potti Sri Ramulu Nellore district, at the rate of Re 1 per acre to Apache Footwear India Pvt Ltd, a Singapore-based footwear company in March 2010, when K Rosaiah was Andhra Pradesh chief minister.
The information was furnished under the Right to Information Act by the APIIC September 5 to the former Guntur District Congress Committee vice president Kanaparthi Srinivas Rao.
Rao, who has a copy of the information furnished to him by the APIIC, alleged that it has evaded disclosure of the market value of the land given to Apache.
The land is part of the 313 acres in Mambattu village which was leased by APIIC in October 2008 to Apache. APIIC later sold the land which it had leased.
He said that according to the Memorandum of Understanding (MOU), Apache ought to have provided 15,000 jobs, but only 5732 jobs have been provided.
He alleged that this was in sharp contrast with how the AP state government sold 124 acres of land at a market value of Rs 50,000 per acre in Vankayapadu and Mydavolu villages in Guntur district to the central government controlled Spices Board, to establish a spices park, whose foundation stone was laid in August 2008.
He also alleged that repeated appeals by the Spices Board and Guntur MP Rayapati Sambasiva Rao to provide the land free of cost, or at a nominal price were rejected by the AP state government, expressing his astonishment at APIIC's magnanimity towards Apache.
Its a matter of time, once Telangana is given or united AP is endorsed, the prices in the city would zoom again. with meagre increase or in some areas negative returns has actually put lot of buyers at bay.
Many coastal andhra people have stopped investing in Hyderabad due to on-going uncertainity over Telangana. Locations such as Gachibowli, Nalagandla, Chandanagar has seen some projects giving a slight positive returns (4-6%) in last one year which is good sign. The inventory overhang also is reducing from 26 months to 22 months, which is still high but a good sign of changing times.
AP govt to distribute 1 lakh acres land to poor on Nov 1
Hyderabad: Andhra Pradesh government targets to distribute one lakh acres of land to landless poor in the state on November 1.
The government has so far identified 85,480 acres of land to be distributed to 60,888 beneficiaries across the state, according to Revenue Minister N Raghuveera Reddy.
Addressing district Collectors and Joint Collectors through a video-conference from the state Secretariat here today, the Revenue Minister said the government had distributed 7,17,821 acres of land in five phases to 5,10,842 beneficiaries since 2005.
However, only 4,70,713 of the beneficiaries have been given possession of the land (6,68,491 acres) while another 40,129 were yet to get 49,330 acres of land.
Meanwhile, the government has asked District Collectors to review cases of lands alienated or allotted to various firms, organisations and individual in the last ten years and resume such lands if they were not utilised for the specified purpose or if the terms of alienation were violated.
The review and resumption process would be completed in the next six months.
The Revenue Minister wanted the Collectors to scrupulously follow the guidelines under the new Land Allotment Policy to ensure that government land was utilised rationally. The AP Land Management Authority would soon be constituted for clearing the land allotment proposals.
He also asked the Collectors and Joint Collectors to take effective steps for protection of government properties, including land. The district administration should also take steps for protection of properties belonging to Christians.
The government also revealed that 935 proposals for allotment of land for new burial and cremation grounds in the state were pending disposal.
"This is a very important issue and you should focus on it. An extent of 8,070 acres of land is required for burial/cremation grounds. A sum of Rs 472.82 crore is required for new burial grounds," Principal Secretary (Revenue) Anil Chandra Punetha said.
Chief Commissioner of Land Administration M Samuel and other senior officials attended.
The Hyderabad Metropolitan Development Authority (HMDA) has decided to serve notices to property owners who had taken up illegal constructions in layouts in its jurisdiction.
HMDA metropolitan commissioner Neerabh Kumar Prasad held a meeting with joint collectors and panchayat officials of Rangareddy and Medak districts along with planning officials on 6th October. He reviewed issues related to regularisation of unauthorised engineering colleges and illegal construction in various layouts with the officials.
The commissioner directed the officials to issue notices to builders/owners of unauthorised structures under the provision of section 13(4) of the AP Urban Areas (Development) Act 1975 and HMDA Act 2008 which says ‘no land development within the development areas shall be undertaken or carried out by any person or body, including government department, unless permission for such development has been obtained in written’.
He asked the planning officials to make time-bound plans to clear pending LRS and BPS applications apart from petitions of engineering colleges.
Source: The Times of India, Hyderabad