The market remains tight but the large developers are holding-on to price levels. Under normal circumstances, a low demand should have resulted in overall price correction, of significant nature. However no appreciable correction is seen.
In fact, new projects like PBEL at APPA and Sunway Properties at Borampet are quoting unbelievable rates at these locations. 1.0 Factors influencing price. There are several factors in the market which makes price to remain high. This include overall inflation, rising raw material costs (Especially Cement & Steel)and shortage of labor force.
The high inflation should automatically make a rate of Rs. 3000/sft to increase to 3300/sft in a year (10% rise) but developers who commit price of Rs.3000/sft has to hold it, whatever be the inflation and increase in cement /steel prices. This situation exposes projects to under recovery risk and obviously, to mitigate this, developers are forced to quote price, with LARGER Margins.
In addition to this, the Govt. has been increasing approval fees, drastically and all increases have to be borne by Developer once price is committed. (Refer Article on GO288)The above factors have made it impractical for developers to offer considerable reduction in price.
Aparna Nallagadla - Base rate of 3500/sft + Extras
Aliens Tellapur - Base rate of 3500/sft + Extras
SMR (Miyapur) - Base rate of 3200/sft + Extras
SMR (Guchibowli) -- Base rate of 5500/sft + Extras
Sunway Properties, beside Borampet - Incredible 3600/sft with 400 Rs/sft special discount at Borampet in 2008 July? Hope sense will prevail. Wonder weathere any Hyderbadi got wooed by Malaysian girls whi manned the sales desk! We are sure people here are smart enough, to see through he scheme of things. (The price is unusally high considering the location. Definitely this Company is not passing on low land acquisition rate, to buyers instead, its asking for extremely high premium even if quality is outstanding)
PBEL, at APPA - Rs.3500/sft at APPA in 2008 with Express Highway still in early stage of NON-COMPLETION?! Wonder whether people would run and buy, at APPA at 3500/sft while apartments are available at lower prices near Narsingi, Tellapur, Nallagdla and even all around Kondapur, Nanakramguda etc The price is a bit unusual considering the location and status of Express Highway. Buyers may review quality/amenities, density (flats per acre) etc and reach own conclusion.
Maytas at Hill County -Rs.3400/sft. So over-confident earlier, now even Maytas is forced to particpate in Property Shows to try and get odd bookings.
Giridhari Constructions at APPA - Rs.3200/sft is asking price. This is said to be negotiable down to 2800/sft
Aditya Tellapur - Villas -Above 225 Lakhs There were several smaller firms all quoting Rs.3000/sft and above, even in Kukatpalli, Chanda Nagar and beyond. Indu was around with its project near Nagole. The new "kid" on the block, BHARAT was not at Exhibition. But they are quoting 3600 to 5600/sft opposite to Guchibowli University! Its going to be an uphill task for it too.
Source:
http://www.exclventures.com/News-July08-property-expo.asp
Thursday, July 31, 2008
BASIC STRUCTURE OF FABCITY, HYDERABAD
The Fabcity was to be developed in 1200 Acers with several Manufacturing Units in the Semiconductor and Nano Tech arena, setting up shop, here.
However, even after Central Govt cleared the Fab policy, no one could proceed with founding of a Fab Manufacturing plant as of May 2008. SemIndia was the first among the entrants in Fabcity. Its facility as of May 2008 is limited to ATMP plant on 100 Acres.
The balance 1100 Acers will be occupied by several other companies. For developing the 1200 Acre Fabcity, an SPV will be formed. APIIC will hold 51%, SemIndia 11% and balance will be held by FIIs and Other Companies. Due to delay in firming up plans by Fab Manufacturing Units, several companies has come forward to take advantage of tax benifits offered under Fab Policy, to Solar Module Manufactures. APIIC has tied up most of the available space in Fabcity, for Solar Module Manufacturing.
However, even after Central Govt cleared the Fab policy, no one could proceed with founding of a Fab Manufacturing plant as of May 2008. SemIndia was the first among the entrants in Fabcity. Its facility as of May 2008 is limited to ATMP plant on 100 Acres.
The balance 1100 Acers will be occupied by several other companies. For developing the 1200 Acre Fabcity, an SPV will be formed. APIIC will hold 51%, SemIndia 11% and balance will be held by FIIs and Other Companies. Due to delay in firming up plans by Fab Manufacturing Units, several companies has come forward to take advantage of tax benifits offered under Fab Policy, to Solar Module Manufactures. APIIC has tied up most of the available space in Fabcity, for Solar Module Manufacturing.
Can’t sell? Why not trade, instead?
Difficulties in selling a home in today’s shaky economic climate have caused some homeowners to think outside of the box and into the past
Rather than offering incentives, such as plasma TVs, some homeowners are going back to the way business was done in the olden days, when bartering was an everyday occurrence, and have put their homes up for “swap.”
“Basically, it’s reciprocal selling — you buy mine, I buy yours. Two homeowners buy each other’s houses / Assets.
As this approach only works if the perfect match is made, OnlineHouseTrading is designed much like a dating service: Each party enters both their own home’s criteria and that of what they are looking for, and OnlineHouseTrading provides them with the potential matches with whom to swap their homes.
Right now, there are a lot of sellers that want to be buyers, but they can’t sell. The likelihood of selling is slim to none — there’s too much competition with short sales, foreclosures.
The house-trading approach can work for nearly anyone, as it’s possible to move up or down in size and price, or even trade to another city or state.
Rather than offering incentives, such as plasma TVs, some homeowners are going back to the way business was done in the olden days, when bartering was an everyday occurrence, and have put their homes up for “swap.”
“Basically, it’s reciprocal selling — you buy mine, I buy yours. Two homeowners buy each other’s houses / Assets.
As this approach only works if the perfect match is made, OnlineHouseTrading is designed much like a dating service: Each party enters both their own home’s criteria and that of what they are looking for, and OnlineHouseTrading provides them with the potential matches with whom to swap their homes.
Right now, there are a lot of sellers that want to be buyers, but they can’t sell. The likelihood of selling is slim to none — there’s too much competition with short sales, foreclosures.
The house-trading approach can work for nearly anyone, as it’s possible to move up or down in size and price, or even trade to another city or state.
Wednesday, July 30, 2008
Marketing - Using Web2.0
It doesn’t matter how great the properties are that you have available. It also doesn’t matter how good the price is if you don’t get people to recognize what you are offering.
There will always be people looking for a home to move into or sellers looking to buy regardless of market conditions. Therefore we need to do our part to reach out to those people. we have to be able to discover who our target market is.
These days we need to be able to implement both online and offline methods of real estate marketing techniques. This way we will reach the largest volume of possible buyers for the properties listed.
Here are a few things we can do:
-Web 2.0 the use of social media networks and video sharing sites to build a list of eager buyers and sellers to market to.-Pay per click (PPC) to get listings sold and our website noticed.-The use of well targeted direct mail to capture more leads-Real estate search engine optimization to build a better visibility for our business-Direct response copy to get buyers and sellers salivating to use you to buy or sell their home.
This is a very effective type of real estate marketing technique that will come with time. we can encourage our clients to tell others but often we don’t have to. People will do this automatically if they feel they have been treated well and gotten the very best possible service available.
There will always be people looking for a home to move into or sellers looking to buy regardless of market conditions. Therefore we need to do our part to reach out to those people. we have to be able to discover who our target market is.
These days we need to be able to implement both online and offline methods of real estate marketing techniques. This way we will reach the largest volume of possible buyers for the properties listed.
Here are a few things we can do:
-Web 2.0 the use of social media networks and video sharing sites to build a list of eager buyers and sellers to market to.-Pay per click (PPC) to get listings sold and our website noticed.-The use of well targeted direct mail to capture more leads-Real estate search engine optimization to build a better visibility for our business-Direct response copy to get buyers and sellers salivating to use you to buy or sell their home.
This is a very effective type of real estate marketing technique that will come with time. we can encourage our clients to tell others but often we don’t have to. People will do this automatically if they feel they have been treated well and gotten the very best possible service available.
RBI move adds to real estate sector’s woes
The Reserve Bank of India’s decision to raise repo rate and cash reserve ratio is expected to add to woes of the real estate sector.
The realty industry — which is already smarting under a sluggish demand and price correction — feels that RBI’s move would tighten the liquidity crunch for developers, and dampen end user demand by putting pressure on home loan rates.
“The hike in repo rate and CRR will negatively impact real estate sector. The hike would mean flow of money to the sector would be tighter than before.
The developers will now have to look towards other sources of funds, which could be on higher rates thus impacting the cost-benefit ratio of each company.
However at Omaxe we may not feel slowdown in the company’s investment plans and they stay as announced earlier,” Mr Sunil Malhotra, Vice-President (Finance), Omaxe Ltd, said.Delay projects
According to Mr Sanjay Verma, Executive Managing Director (South Asia) of Cushman & Wakefield, the credit policy has set the stage for hardening of interest rates.
“This is bad news for developers. Already, the credit crunch is hurting project financing, which is leading to delays in residential and commercial projects. Projects could now get delayed further,” he said.
Real estate players are currently grappling with dwindling sales, correction in land prices, tepid demand, and rising input costs, even as they face a liquidity squeeze. In such a scenario, if banks hike the interest rates on home loans further, the residential demand is likely to get hit, said industry observers.
Mr Pradeep Jain, Chairman, Parsvnath Developers Ltd, agreed that increase in cost of borrowing (for developers) would escalate the cost of the real estate project — the burden would ultimately be passed on to consumers. “The cost of borrowing goes up not only for builders but for all ancillary and input industries as well, leading to a higher price tag for the real estate product.
Moreover, it has an impact on home loans,” he said, but pointed out that foreign direct investment still remained a viable option for the players to raise capital.
Mr Jain also opined that end users or first time home buyers are unlikely to get deterred by a marginal hike in the home loan rates.
The board consensus in the industry is that increase in home loan rates would certainly have a detrimental effect on the mid and upper-end segment of home buyers. Mr Kunal Banerji, President, Marketing, Ansal Infrastructure and Properties Ltd, said “Although, we do not predict any drastic change in the overall robust demand for quality housing at this stage, there could be a long-term effect on the speed of the overall growth, particularly in the residential real estate category.”
Echoing the sentiments, Mr Ajay Mangal, Director (Finance), Uppal Group, felt that demand will surely be hit once the home loans become costlier.
http://www.thehindubusinessline.com/2008/07/30/stories/2008073051521200.htm
The realty industry — which is already smarting under a sluggish demand and price correction — feels that RBI’s move would tighten the liquidity crunch for developers, and dampen end user demand by putting pressure on home loan rates.
“The hike in repo rate and CRR will negatively impact real estate sector. The hike would mean flow of money to the sector would be tighter than before.
The developers will now have to look towards other sources of funds, which could be on higher rates thus impacting the cost-benefit ratio of each company.
However at Omaxe we may not feel slowdown in the company’s investment plans and they stay as announced earlier,” Mr Sunil Malhotra, Vice-President (Finance), Omaxe Ltd, said.Delay projects
According to Mr Sanjay Verma, Executive Managing Director (South Asia) of Cushman & Wakefield, the credit policy has set the stage for hardening of interest rates.
“This is bad news for developers. Already, the credit crunch is hurting project financing, which is leading to delays in residential and commercial projects. Projects could now get delayed further,” he said.
Real estate players are currently grappling with dwindling sales, correction in land prices, tepid demand, and rising input costs, even as they face a liquidity squeeze. In such a scenario, if banks hike the interest rates on home loans further, the residential demand is likely to get hit, said industry observers.
Mr Pradeep Jain, Chairman, Parsvnath Developers Ltd, agreed that increase in cost of borrowing (for developers) would escalate the cost of the real estate project — the burden would ultimately be passed on to consumers. “The cost of borrowing goes up not only for builders but for all ancillary and input industries as well, leading to a higher price tag for the real estate product.
Moreover, it has an impact on home loans,” he said, but pointed out that foreign direct investment still remained a viable option for the players to raise capital.
Mr Jain also opined that end users or first time home buyers are unlikely to get deterred by a marginal hike in the home loan rates.
The board consensus in the industry is that increase in home loan rates would certainly have a detrimental effect on the mid and upper-end segment of home buyers. Mr Kunal Banerji, President, Marketing, Ansal Infrastructure and Properties Ltd, said “Although, we do not predict any drastic change in the overall robust demand for quality housing at this stage, there could be a long-term effect on the speed of the overall growth, particularly in the residential real estate category.”
Echoing the sentiments, Mr Ajay Mangal, Director (Finance), Uppal Group, felt that demand will surely be hit once the home loans become costlier.
http://www.thehindubusinessline.com/2008/07/30/stories/2008073051521200.htm
Indian FDI Rules – Real Estate
Indian FDI Rules – Real Estate
Government of India (Ministry of Commerce & Industry) - PRESS NOTE NO. 2 (2006 SERIES)
Subject: Clarification regarding Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects.
1. The Government, vide Press Note 2 (2005 Series) dated 2.3.2005, had notified the policy for Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects. The Government has received few requests from investors seeking clarifications on applicability of these policy guidelines to some other sectors such as Special Economic Zones, Hotels, Hospitals, etc.
2. The matter has been considered in the light of the policy prevailing prior to issue of the subject Press Note. FDI up to 100% was already allowed under the automatic route in the Hotel and tourism sector vide Press Note 4 (2001 Series) and in the Hospital sector vide Press Note 2(2000 Series). Special Economic Zones are separately regulated under the Special Economic Zone Act, 2005.
3. It is clarified that the provisions of Press Note 2 (2005 Series) shall not apply to Special Economic Zones; neither shall it apply to establishment and operation of hotels and hospitals which shall continue to be governed by Press Note 4 (2001 Series) and Press Note 2 (2000 Series) respectively.
(Umesh Kumar) Joint Secretary to the Government of India - F. No. 12/36/2005-FC dated 16 January 2006
Government of India (Ministry of Commerce & Industry) - Press Note 2 (2005)
Subject: Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects.
1. With a view to catalyzing investment in townships, housing, built-up infrastructure and construction-development projects as an instrument to generate economic activity, create new employment opportunities and add to the available housing stock and built-up infrastructure, the Government has decided to allow FDI up to 100% under the automatic route in townships, housing, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), subject to the following guidelines:
a. Minimum area to be developed under each project would be as under:
i. In case of development of serviced housing plots, a minimum land area of 10 hectares
ii. In case of construction-development projects, a minimum built-up area of 50,000 sq.mts
iii. In case of a combination project, anyone of the above two conditions would suffice
b. The investment would further be subject to the following conditions:
i. Minimum capitalization of US$10 million for wholly owned subsidiaries and US$ 5 million for joint ventures with Indian partners. The funds would have to be brought in within six months of commencement of business of the Company.
ii. Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. However, the investor may be permitted to exit earlier with prior approval of the Government through the FIPB.
c. At least 50% of the project must be developed within a period of five years from the date of obtaining all statutory clearances. The investor would not be permitted to sell undeveloped plots. For the purpose of these guidelines, "undeveloped plots" will mean where roads, water supply, street lighting, drainage, sewerage, and other conveniences, as applicable under prescribed regulations, have not been made available. It will be necessary that the investor provides this infrastructure and obtains the completion certificate from the concerned local body/service agency before he would be allowed to dispose of serviced housing plots.
d. The project shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned.
e. The investor shall be responsible for obtaining all necessary approvals, including those of the building/layout plans, developing internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed under applicable rules/bye-Iaws/regulations of the State Government/Municipal/Local Body concerned.
f. The State Government/Municipal/Local Body concerned, which approves the building/ development plans, would monitor compliance of the above conditions by the developer.
2. Para (iv) of Press Note 4 (2001 Series), issued by the Government on 21.5.2001, and Press Note 3 (2002 Series), issued on 4.1.2002, stand superceded.
(Umesh Kumar) - Joint Secretary to the Government of India No. 5(6)/2000-FC dated 3 March 2005
Government of India (Ministry of Commerce & Industry) - PRESS NOTE NO. 4 (2001 SERIES)
Subject : Revision of existing sectoral guidelines and equity cap on Foreign Direct Investment (FDI), including investment by Non Resident Indians (NRIs) and Overseas Corporate Bodies (OCBs)
With a view to further liberalizing the FDI regime, Government have effected the following changes in the FDI policy:
ii. FDI up to 100% is permitted in airports, with FDI above 74% requiring prior approval of the Government.
iv. FDI up to 100% is permitted for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure facilities such as roads and bridges, mass rapid transit systems; and manufacture of building materials. Development of land and providing allied infrastructure will form an integral part of township’s development, for which necessary guidelines/norms relating to minimum capitalization, minimum land area, etc., will be notified separately by the Government. FDI in this sector would be permissible with prior Government approval.
v. FDI up to 100% is permitted on the automatic route in hotel and tourism sector.
vii. FDI up to 100% is permitted on the automatic route for Mass Rapid Transport Systems in all metropolitan cities, including associated commercial development of real estate.
viii. NRI investment in foreign exchange is made fully repatriable whereas investments made in Indian rupees through rupee accounts shall remain nonrepatriable.
2. The provisions of Press Note No. 2 of 2000 stand modified to the above extent.
(M. S. SRINIVASAN) - Joint Secretary - No. 5(6)/2000-FC I dated: 21 May 2001
Government of India- (Ministry of Commerce & Industry) - Press Note No.2 (2000 Series)
No.7(4)/2000-IP dated 11 February 2000 SECTOR SPECIFIC GUIDELINES FOR FOREIGN DIRECT INVESTMENT
18. Roads & Highways, Ports and Harbors: FDI up to 100% under automatic route is permitted in projects for construction and maintenance of roads, highways, vehicular bridges, toll roads, vehicular tunnels, ports and harbors.
19. Hotels & Tourism: 100% FDI is permissible in the sector. The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry includes travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organization. Automatic route is also available up to 51% subject to the following parameters. For foreign technology agreements, automatic approval is granted if:
i. up to 3% of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architecture, design, supervision, etc.
ii. up to 3% of the net turnover is payable for franchising and marketing/publicity support fee, and
iii. up to 10% of gross operating profit is payable for management fee, including incentive fee.
Government of India (Ministry of Commerce & Industry) - PRESS NOTE NO. 2 (2006 SERIES)
Subject: Clarification regarding Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects.
1. The Government, vide Press Note 2 (2005 Series) dated 2.3.2005, had notified the policy for Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects. The Government has received few requests from investors seeking clarifications on applicability of these policy guidelines to some other sectors such as Special Economic Zones, Hotels, Hospitals, etc.
2. The matter has been considered in the light of the policy prevailing prior to issue of the subject Press Note. FDI up to 100% was already allowed under the automatic route in the Hotel and tourism sector vide Press Note 4 (2001 Series) and in the Hospital sector vide Press Note 2(2000 Series). Special Economic Zones are separately regulated under the Special Economic Zone Act, 2005.
3. It is clarified that the provisions of Press Note 2 (2005 Series) shall not apply to Special Economic Zones; neither shall it apply to establishment and operation of hotels and hospitals which shall continue to be governed by Press Note 4 (2001 Series) and Press Note 2 (2000 Series) respectively.
(Umesh Kumar) Joint Secretary to the Government of India - F. No. 12/36/2005-FC dated 16 January 2006
Government of India (Ministry of Commerce & Industry) - Press Note 2 (2005)
Subject: Foreign Direct Investment (FDI) in townships, housing, built-up infrastructure and construction-development projects.
1. With a view to catalyzing investment in townships, housing, built-up infrastructure and construction-development projects as an instrument to generate economic activity, create new employment opportunities and add to the available housing stock and built-up infrastructure, the Government has decided to allow FDI up to 100% under the automatic route in townships, housing, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), subject to the following guidelines:
a. Minimum area to be developed under each project would be as under:
i. In case of development of serviced housing plots, a minimum land area of 10 hectares
ii. In case of construction-development projects, a minimum built-up area of 50,000 sq.mts
iii. In case of a combination project, anyone of the above two conditions would suffice
b. The investment would further be subject to the following conditions:
i. Minimum capitalization of US$10 million for wholly owned subsidiaries and US$ 5 million for joint ventures with Indian partners. The funds would have to be brought in within six months of commencement of business of the Company.
ii. Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. However, the investor may be permitted to exit earlier with prior approval of the Government through the FIPB.
c. At least 50% of the project must be developed within a period of five years from the date of obtaining all statutory clearances. The investor would not be permitted to sell undeveloped plots. For the purpose of these guidelines, "undeveloped plots" will mean where roads, water supply, street lighting, drainage, sewerage, and other conveniences, as applicable under prescribed regulations, have not been made available. It will be necessary that the investor provides this infrastructure and obtains the completion certificate from the concerned local body/service agency before he would be allowed to dispose of serviced housing plots.
d. The project shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned.
e. The investor shall be responsible for obtaining all necessary approvals, including those of the building/layout plans, developing internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed under applicable rules/bye-Iaws/regulations of the State Government/Municipal/Local Body concerned.
f. The State Government/Municipal/Local Body concerned, which approves the building/ development plans, would monitor compliance of the above conditions by the developer.
2. Para (iv) of Press Note 4 (2001 Series), issued by the Government on 21.5.2001, and Press Note 3 (2002 Series), issued on 4.1.2002, stand superceded.
(Umesh Kumar) - Joint Secretary to the Government of India No. 5(6)/2000-FC dated 3 March 2005
Government of India (Ministry of Commerce & Industry) - PRESS NOTE NO. 4 (2001 SERIES)
Subject : Revision of existing sectoral guidelines and equity cap on Foreign Direct Investment (FDI), including investment by Non Resident Indians (NRIs) and Overseas Corporate Bodies (OCBs)
With a view to further liberalizing the FDI regime, Government have effected the following changes in the FDI policy:
ii. FDI up to 100% is permitted in airports, with FDI above 74% requiring prior approval of the Government.
iv. FDI up to 100% is permitted for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure facilities such as roads and bridges, mass rapid transit systems; and manufacture of building materials. Development of land and providing allied infrastructure will form an integral part of township’s development, for which necessary guidelines/norms relating to minimum capitalization, minimum land area, etc., will be notified separately by the Government. FDI in this sector would be permissible with prior Government approval.
v. FDI up to 100% is permitted on the automatic route in hotel and tourism sector.
vii. FDI up to 100% is permitted on the automatic route for Mass Rapid Transport Systems in all metropolitan cities, including associated commercial development of real estate.
viii. NRI investment in foreign exchange is made fully repatriable whereas investments made in Indian rupees through rupee accounts shall remain nonrepatriable.
2. The provisions of Press Note No. 2 of 2000 stand modified to the above extent.
(M. S. SRINIVASAN) - Joint Secretary - No. 5(6)/2000-FC I dated: 21 May 2001
Government of India- (Ministry of Commerce & Industry) - Press Note No.2 (2000 Series)
No.7(4)/2000-IP dated 11 February 2000 SECTOR SPECIFIC GUIDELINES FOR FOREIGN DIRECT INVESTMENT
18. Roads & Highways, Ports and Harbors: FDI up to 100% under automatic route is permitted in projects for construction and maintenance of roads, highways, vehicular bridges, toll roads, vehicular tunnels, ports and harbors.
19. Hotels & Tourism: 100% FDI is permissible in the sector. The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry includes travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organization. Automatic route is also available up to 51% subject to the following parameters. For foreign technology agreements, automatic approval is granted if:
i. up to 3% of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architecture, design, supervision, etc.
ii. up to 3% of the net turnover is payable for franchising and marketing/publicity support fee, and
iii. up to 10% of gross operating profit is payable for management fee, including incentive fee.
Tuesday, July 29, 2008
Marketing-- tru Social Networking Portals
"for sale by owner" website, today announced that its listings will be included in the Cribfinder application on the Facebook Platform. With more than 60 million active users, Facebook is the sixth-most trafficked website in the United States. Cribfinder provides ForSaleByOwner.com customers with a free, innovative approach to marketing their home on Facebook.
"More than 84% of all real estate buyers go online to find their next home and marketing all of our customers' properties on this top 10 website furthers our commitment to help people sell their home without paying commission," said Greg Healy, Vice President of Operations for ForSaleByOwner.com.
Beginning today, all ForSaleByOwner.com customers will have their property listings automatically posted to Cribfinder at no additional cost. Cribfinder offers a conventional real estate search functionality and, consistent with Facebook's social utility, allows Facebook users to see who within their network has a property for sale. Historically, many homebuyers purchase homes found through friends and family members. The Cribfinder partnership enables ForSaleByOwner.com customers to leverage this important aspect of selling a home within Facebook's community.
"Online networking is another innovative marketing approach we're using to help people build independence from commissioned real estate agents. We're pleased to partner with Cribfinder for the benefit of the growing amount of 'for sale by owner' consumers," said Healy.
Cribfinder is owned by Jenius Industries Inc., an internet company specializing in Facebook applications. Adam Oppenheimer, President of Jenius Industries Inc., said, "Cribfinder utilizes the social graph for real estate, maximizing property visibility by syndicating listings throughout Facebook. We are excited to add ForSaleByOwner's rich portfolio and popular branding to our service."
"More than 84% of all real estate buyers go online to find their next home and marketing all of our customers' properties on this top 10 website furthers our commitment to help people sell their home without paying commission," said Greg Healy, Vice President of Operations for ForSaleByOwner.com.
Beginning today, all ForSaleByOwner.com customers will have their property listings automatically posted to Cribfinder at no additional cost. Cribfinder offers a conventional real estate search functionality and, consistent with Facebook's social utility, allows Facebook users to see who within their network has a property for sale. Historically, many homebuyers purchase homes found through friends and family members. The Cribfinder partnership enables ForSaleByOwner.com customers to leverage this important aspect of selling a home within Facebook's community.
"Online networking is another innovative marketing approach we're using to help people build independence from commissioned real estate agents. We're pleased to partner with Cribfinder for the benefit of the growing amount of 'for sale by owner' consumers," said Healy.
Cribfinder is owned by Jenius Industries Inc., an internet company specializing in Facebook applications. Adam Oppenheimer, President of Jenius Industries Inc., said, "Cribfinder utilizes the social graph for real estate, maximizing property visibility by syndicating listings throughout Facebook. We are excited to add ForSaleByOwner's rich portfolio and popular branding to our service."
'CELEBRITY’ REAL ESTATE - New Marketing Mantra
Would you like to have an office in Boris Becker Tower or rent Space in a business park named after Formula 1 world champion Micheal Schumacher? Or is another racer, Niki Lauda’s Twin Tower more up your avenue?
What about matching your office address with your residential one by living in an apartment designed by Ivana Trump (the ex-wife of hotelier Donald Trump) or ace golfer Greg Norman?
Don’t be surprised if this how some prime real estate is sold in times to come in the country. A trend that is making waves across the world of late ---especially in the United Arab Emirates---called ‘celebrity projects’ will soon make its presence felt in India as well. Celebrities are no longer just buying real estate, but also lending Their name to it, to give buyers a sense of association with a trademark reputation and lifestyle statements.
Former golf pro-turned-business-man Greg Norman is already betting big on India. Norman’s company, Great White Shark Enterprises, is in talks with reality major Unitech to design golf courses in its various townships as well as build ‘gated communities within gated communities”.
Norman’s company will take 10 percent of a residential project (70 villas / apartments if the project has 700 on offer) and convert it into a signature real estate product. Says Bart Collins, President, Great White Shark Enterprises, which has $200 million in annual revenues, “we have already executed a number of projects in the US,Australia and the Middle East.
The homes will be either called Norman Estates or Norman Residency and will have feature that will even put luxury to shame. There will be audio systems from Bang and Olufsen, interiors from big Italian companies and even a limited edition Range Rover with the home / apartment.” Dubai based Darvesh group has entered into a partnership with lvana Trump to construct premium residential and commercial properties in the Middle East and India. Named Le Diamond, the concept of branded real estate might come to India as early as the end of 2008.” We will launch the concept in Mumbai and New Delhi by the end of year,” said Ahsan Hassan Daresh, Managing Director, Darvesh Group.
Dubai recently also saw the launch of Sports Trilogy project comprising business tower named after sports personalities like Boris Becker, Micheal Schumacher and Niki Lauda.
Says Sanjay chimnani, Joint Managing Director, ACI Real Estate, the developer of the project, “We are planning to enter the Indian market through partnerships / franchises in the next few months. We intend to have a presence in six cities of India including New Delhi, Mumbai, Kolkata, Chennai, Banglore, and Hyderabad.”
However, celebrities do not just lend their name to a project. They are also actively involved in its design and marketing, thus differentiating it from the usual celebrity endorsement. Says Chinmani, “The key reason for the success of our project has been the hands-on involvement of these legends in the design and planning of the respective towers. Each of them sits on the board of directors for their respective buildings. This is a clear departure from traditional celebrity product endorsement
What about matching your office address with your residential one by living in an apartment designed by Ivana Trump (the ex-wife of hotelier Donald Trump) or ace golfer Greg Norman?
Don’t be surprised if this how some prime real estate is sold in times to come in the country. A trend that is making waves across the world of late ---especially in the United Arab Emirates---called ‘celebrity projects’ will soon make its presence felt in India as well. Celebrities are no longer just buying real estate, but also lending Their name to it, to give buyers a sense of association with a trademark reputation and lifestyle statements.
Former golf pro-turned-business-man Greg Norman is already betting big on India. Norman’s company, Great White Shark Enterprises, is in talks with reality major Unitech to design golf courses in its various townships as well as build ‘gated communities within gated communities”.
Norman’s company will take 10 percent of a residential project (70 villas / apartments if the project has 700 on offer) and convert it into a signature real estate product. Says Bart Collins, President, Great White Shark Enterprises, which has $200 million in annual revenues, “we have already executed a number of projects in the US,Australia and the Middle East.
The homes will be either called Norman Estates or Norman Residency and will have feature that will even put luxury to shame. There will be audio systems from Bang and Olufsen, interiors from big Italian companies and even a limited edition Range Rover with the home / apartment.” Dubai based Darvesh group has entered into a partnership with lvana Trump to construct premium residential and commercial properties in the Middle East and India. Named Le Diamond, the concept of branded real estate might come to India as early as the end of 2008.” We will launch the concept in Mumbai and New Delhi by the end of year,” said Ahsan Hassan Daresh, Managing Director, Darvesh Group.
Dubai recently also saw the launch of Sports Trilogy project comprising business tower named after sports personalities like Boris Becker, Micheal Schumacher and Niki Lauda.
Says Sanjay chimnani, Joint Managing Director, ACI Real Estate, the developer of the project, “We are planning to enter the Indian market through partnerships / franchises in the next few months. We intend to have a presence in six cities of India including New Delhi, Mumbai, Kolkata, Chennai, Banglore, and Hyderabad.”
However, celebrities do not just lend their name to a project. They are also actively involved in its design and marketing, thus differentiating it from the usual celebrity endorsement. Says Chinmani, “The key reason for the success of our project has been the hands-on involvement of these legends in the design and planning of the respective towers. Each of them sits on the board of directors for their respective buildings. This is a clear departure from traditional celebrity product endorsement
HUDA needs to raise Rs 3,500cr
The Hyderabad Urban Development Authority (Huda) has requested the government to withdraw the economic weaker sections (EWS) clause to enable it to sell government land. Huda needs to raise over Rs 3,000 crore by auctioning land and hand over the money to the government. But it has failed to do so as builders and developers are against allotting 20 per cent land for EWS.
Huda officials have already sent feelers to the government stating that the clause is acting as a major bottleneck in the auctioning process. Now, they are planning write a letter to the government seeking removal of the clause or at least provide tax exemptions to the builders. Some Huda officials also feel that the Rs 1 lakh crore budget presented by the government has turned out to be a burden for the development agencies. The government had said nearly Rs 12,500 crore would be raised through the auctioning process.
Towards achieving this endeavour, the government has fixed various targets for agencies like Huda, Andhra Pradesh Industrial Infrastructure Corporation, AP Tourism Development Corporation and Andhra Pradesh Housing Board to raise the money through auctioning. Huda, which even tried to sell land through the e-auction process, failed to make much progress. The Huda secretary, Mr D. Rama Rao, refused to comment on the EWS clause and said they will auction land in accordance to government rules
Huda officials have already sent feelers to the government stating that the clause is acting as a major bottleneck in the auctioning process. Now, they are planning write a letter to the government seeking removal of the clause or at least provide tax exemptions to the builders. Some Huda officials also feel that the Rs 1 lakh crore budget presented by the government has turned out to be a burden for the development agencies. The government had said nearly Rs 12,500 crore would be raised through the auctioning process.
Towards achieving this endeavour, the government has fixed various targets for agencies like Huda, Andhra Pradesh Industrial Infrastructure Corporation, AP Tourism Development Corporation and Andhra Pradesh Housing Board to raise the money through auctioning. Huda, which even tried to sell land through the e-auction process, failed to make much progress. The Huda secretary, Mr D. Rama Rao, refused to comment on the EWS clause and said they will auction land in accordance to government rules
Cremunity.tv: Video website, exclusive to commercial real estate
Norwell, MA According to the New Media/Web 2.0 division of The New York Real Estate Journal (NYREJ), one of the first video websites for the commercial real estate industry, Commercial Real Estate Community TV - www.cremunity.tv has been launched. NYREJ has been reporting on the industry for over 20 years in print and more recently online at www.nyrej.com. Cremunity TV is their first attempt at the new online trend, Web 2.0. Commercial real estate companies and individuals now have a place to upload their videos to a site that is dedicated to their industry.
"We knew that we had to get into social media at some point. We are excited to be the first to launch a video platform for the commercial real estate industry. In this new information age, there are so many ways to distribute valuable information that users are seeking, one being video. We are using video as our entry point into the social media marketing sphere.
Our biggest challenge is that video hasn't yet been brought into the mainstream of commercial real estate marketing and PR. We are going to attempt to set that trend by showing the value of video when highlighting your company, city, property, or yourself with the use of our free video platform. Cremunity TV is the first aspect of the overall social networking site that we are developing for the commercial real estate industry. These new technologies combined with the traditional print enables us to offer different types of marketing and promotion such as video, print, web, and PR all in one service using various technology platforms and distribution outlets for that information to easily be found by interested parties.
We invite all related commercial real estate companies and individuals around the world to create a free account, upload and tag their videos," said Stephen Hopkins, director of business development at NYREJ.
Cremunity TV is making finding commercial real estate related videos very easy. You can type in "keywords" of what you are looking for in the search box. The video results will match those keywords that you entered while also searching the text used to describe the content of the video. Cremunity TV has also broken the industry down into categories on their "videos" page, so if you have more time to browse around, you can search for videos by clicking on a specific category. Check out the "channels" tab to view companies that have set up exclusive channels on the site that display only their videos of choice.
"We knew that we had to get into social media at some point. We are excited to be the first to launch a video platform for the commercial real estate industry. In this new information age, there are so many ways to distribute valuable information that users are seeking, one being video. We are using video as our entry point into the social media marketing sphere.
Our biggest challenge is that video hasn't yet been brought into the mainstream of commercial real estate marketing and PR. We are going to attempt to set that trend by showing the value of video when highlighting your company, city, property, or yourself with the use of our free video platform. Cremunity TV is the first aspect of the overall social networking site that we are developing for the commercial real estate industry. These new technologies combined with the traditional print enables us to offer different types of marketing and promotion such as video, print, web, and PR all in one service using various technology platforms and distribution outlets for that information to easily be found by interested parties.
We invite all related commercial real estate companies and individuals around the world to create a free account, upload and tag their videos," said Stephen Hopkins, director of business development at NYREJ.
Cremunity TV is making finding commercial real estate related videos very easy. You can type in "keywords" of what you are looking for in the search box. The video results will match those keywords that you entered while also searching the text used to describe the content of the video. Cremunity TV has also broken the industry down into categories on their "videos" page, so if you have more time to browse around, you can search for videos by clicking on a specific category. Check out the "channels" tab to view companies that have set up exclusive channels on the site that display only their videos of choice.
Monday, July 28, 2008
Connectivity to Airport - HUDA Plan of Action
The recently-inaugurated world-class international airport in Hyderabad is seen as a mascot that will boost the image of this Indian software hub as a future mega city of the world.
The investment scenario in the city promises growth and returns to the stakeholders.Nevertheless, in the past couple of quarters two multi-billion dollar deals have taken place in the real estate sector of Hyderabad between Maytas Properties and JM Financial and Golden Gate Properties and Deutche Bank.
These investment bankers, after their exhaustive studies, found Hyderabad as a dynamic real estate market that has potential to attract investors from across the world.Infrastructure SupportThe Shamshabad airport is undoubtedly a major growth driver for Hyderabad's investment property segment, but since it is located at the suburban area, connectivity is a major issue that can affect investors' mindset.
The Hyderabad Urban Development Authority (HUDA), however, have come up with an action plan. Five major infrastructure plans have been laid down to suitably connect the airport with all major parts of the city and reduce the travel time as well. The authority is in the process of constructing a 4-lane, 11.50 km long PVNR Elevated Expressway, between Aramghar and Mehdipatnam. This will be India's longest elevated highway.
A slip road has also been planned at Aramghar to divert heavy traffic and de-congest the junction. According to sources, an 8-lane 22 km section of Outer Ring Road (ORR) would also be extended to enhance the connectivity of airport across the eastern and western part of the city. The 11 km Inner Ring Road (IRR) will be improved between Mailadevpall and Khairatabad, covering the inner central and eastern parts of the city.
A P7 road will be developed to provide connectivity with the IRR.The ORR will provide direct connectivity to the airport while the IRR will link north-eastern parts of the city like Begumpet, Tarnaka, Champapet and Chandrayangutta through P7 road.According to real estate experts of Hyderabad, the property values in the vicinity of these roads will escalate in the near future and returns from 25 to 200 per cent on residential plots can be expected in the next 8-12 months.
The investment scenario in the city promises growth and returns to the stakeholders.Nevertheless, in the past couple of quarters two multi-billion dollar deals have taken place in the real estate sector of Hyderabad between Maytas Properties and JM Financial and Golden Gate Properties and Deutche Bank.
These investment bankers, after their exhaustive studies, found Hyderabad as a dynamic real estate market that has potential to attract investors from across the world.Infrastructure SupportThe Shamshabad airport is undoubtedly a major growth driver for Hyderabad's investment property segment, but since it is located at the suburban area, connectivity is a major issue that can affect investors' mindset.
The Hyderabad Urban Development Authority (HUDA), however, have come up with an action plan. Five major infrastructure plans have been laid down to suitably connect the airport with all major parts of the city and reduce the travel time as well. The authority is in the process of constructing a 4-lane, 11.50 km long PVNR Elevated Expressway, between Aramghar and Mehdipatnam. This will be India's longest elevated highway.
A slip road has also been planned at Aramghar to divert heavy traffic and de-congest the junction. According to sources, an 8-lane 22 km section of Outer Ring Road (ORR) would also be extended to enhance the connectivity of airport across the eastern and western part of the city. The 11 km Inner Ring Road (IRR) will be improved between Mailadevpall and Khairatabad, covering the inner central and eastern parts of the city.
A P7 road will be developed to provide connectivity with the IRR.The ORR will provide direct connectivity to the airport while the IRR will link north-eastern parts of the city like Begumpet, Tarnaka, Champapet and Chandrayangutta through P7 road.According to real estate experts of Hyderabad, the property values in the vicinity of these roads will escalate in the near future and returns from 25 to 200 per cent on residential plots can be expected in the next 8-12 months.
Ventures in and Around Hi-Tech City
RESIDENTIAL VENTURES:
1. Vasantha Valley
Independent villas near Jayabheri Silicon Towers
2. Aparna Orchids
Fifty-nine tasteful villas created within 10 sprawling acres, Aparna Orchids is testament to the discerning eye of people. Located on prime property in Madhapur, Aparna Orchids is very much in the thick of all the action in Cyberabad.
Each Villa – 410 Sq Yds 3500 Sq Ft – 3-3.5 Cr
3. Indu Fortune Fields
A 65-acre enclave of gated communities that boasts of world-class facilities and amenities in an oriental ambience, just a whisk away from the HiTech city.
325 Sq Yards Villa, 3415 Sq.Ft - Rs 2-2.5 Cr
4. Myhome Navadweepa
Gated apartment community adjacent to Wipro near Hitec City, in walkable distance to most of the IT offices
3BR Apartment rents out for approximately Rs 30000 – 50000 per month
Venture completed in the year 2002
Cost of apartment: Rs 4500 per sq feet
5. Jayabheri Silicon County
Silicon County consists of 3 residential blocks, apart from a clubhouse
There are totally 14 towers spread over these 3 residential blocks. 6 towers have single level apartments and the remaining 8 towers have duplex apartments.
Each apartment in Silicon County is a study in elegance
Cost of each apartment: Rs 4500-5000 per sq feet
6. Lumbini SLN Springs
Lumbini Constructions Ltd, which is well known for quality commercial projects developed over the last 25 years, has come up with a premium residential project, SLN Springs at Gachibowli.
SLN Springs is a 15-acre gated community of independent duplex houses in the most sought after place of Gachibowli, abutting the proposed express highway connecting the old and new Bombay Highway and right next to the famed Botanical Gardens, offering a pollution-free, visual retreat.
The community offers 95 high-end duplex homes on plots of 400 – 1000 sq yards priced around Rs 3.5 Crore per house
7. Rolling Hills
A fine gated community of posh bungalows located at Gachibowli close to Hitec City
Each villa is on a 546 sq yards plot with 4500 sq ft
Price of each villa: Rs 2.5 – 3.5 Cr
8. Meenakshi “The Bamboos”
Ultra luxury Villas for up to 4.5Cr per Villa
HUDA Approved layout
Located close to Hitec City in Gachibowli
9. QuietLands
A posh residential colony of independent Duplex-type bungalows in the most serene and peaceful environs at Gachibowli
QuitLands is right on the Old Mumbai Highway
Each villa around Rs 1.5 Cr
10. IVRCL HillRidge Apartments and Villas
A beautiful project right in the middle of the knowledge corridor, near ISB
Residential 2,3,4 Bedroom Apartments in 36 acres with floating gardens
5 bedroom independent Villas - Around 3.5 Cr for 450sq.yds Villa
11. SMR Vinay Technopolis
“SMR VINAY TECHNOPOLIS” is an ode to design, both inside and outside. The complex is made up of 2 and 3 bed room apartments
It is located close to Jayabheri Silicon County near Hitec City
Built on a 2-Acre lot in year 2005, these premium apartments cost around Rs 50-70 Lakhs each
12. Lanco Hills
LANCO Hills, Hyderabad is a unique project being developed by LANCO Group. It is one of the largest mixed developments in India at over 18 million sq. ft. in an 100 acre site With an investment of over US $ 80 million.
LANCO Hills, Hyderabad will become a landmark in India, with its high rise residential towers, office towers, service apartments, hotels, a mall and one of the largest entertainment zones. Another unique feature of LANCO Hills, Hyderabad is its 90 level residential tower - one of the tallest buildings in India.
A super structure of 90 levels, the tallest in India
16 residential towers of up to 30 levels high
4 level mall structure with a 2 million sq. ft. mall and a 3 level covered parking
Entertainment zone with a 12 screen multiplex and a 22 acre lake
A commercial complex with several retail and business outlets
Apartments price: Upto Rs 4600/sq ft in the first phase
13. Aparna Shangrila
APARNA SHANGRILA is a Gated Layout of high-end bungalows just Beside Wipro/Polaris
355 SQD (with 3600 SFT), 450 SQD (with 4200 SFT) Bungalows - 3.5+ Cr per Villa
14. Jayabheri Four Seasons
Gated community of plots located at Gopanapalli close to the Microsoft, Infosys campuses
CDA Approved Layout with prices upto Rs 30,000 per sq yard
15. Lalitha Bloomfield
Vasudeva Realtors’ Lalitha Bloomfield is a magnificient 4-acre layout located at Nanakramguda, very close to Oakridge International School and Delhi Public School, and the Financial District
It is a gated community of 40 beautiful bungalows of world class and state-of-the-art comfort, being developed by Vasudeva Realtors
Priced around Rs 1.85 Cr per villa
16. Aparna Laketown and Aparna Sarovar
‘Aparna Laketown’ is a joint venture between Aparna Constructions and Morgan Stanley to provide high-end housing and commercial development project at Nallagandla in Hyderabad, overing 12 million square feet. This would include an integrated retail and entertainment complex and a branded hotel.
Aparna is also coming up with lifestyle apartments in the same townshiop, which is named as “Aparna Sarovar”. The apartment prices range from Rs 3300/sq ft. The construction of Sarovar apartments has been progressing well. Jerde Partnership Inc does the whole planning, LA who are also the architects of the Mall of America, Minneapolis and Bellagio in Las Vegas.
17. Aparna Cyber County
Aparna Cyber County is a gated community of over 2.2 lakhs built-up area which nestles 59 superbly-crafted bungalows. It is spread over 11Acres of land. It is located at Gopanapally, 6KM from Gachibowli and other IT parks and replete with every possible modern amenity. Whether it’s the information highway or the road to shopping / life / happiness, you’re never more than a stone’s throw away from the perfect life.
18. Jayabheri Orange County
Jayabheri Orange County at Nanakramguda is high-end apartment community with features such as ‘No common walls’, ‘Centralized cooking gas with individual metering facility’, ‘duplex apartments’, ‘generator backup’ etc. It is at walkable distance to many of the IT offices such as Wipro, CA, Microsoft, Polaris etc. The apartments are priced Rs 4500/sq ft.
19. BHEL Township (MIG Phase I,II,III and Annamayya Enclave)
BHEL Township is a huge residential township located at Nallagandla. These houses are next to Tellapur. MIG is divided into three phases.
Phase 1 - More than 12 years old colony with mostly 230-250 sq Yd independent houses with lots of shops, schools, banks, bus facility etc etc. It is old HUDA layout, so you will have 40 feet and 33 feet roads mostly.
Phase 2 - It is almost 5 years old. A new HUDA layout with 60 ft & 40 ft roads and almost all house are 200 Sq Yards. It is behind Phase 1, separated by some barren land & urban forestry of a stretch of approx 1 km. Since it is a new colony , you do not have too many shops, commericla establishments etc. City bus facility is also not frequent. Also this colony is next to Mumbai rail way line and if they go a head with MMTS phase 2 , mostly likely you will get a station behind this colony.
These are built by IVRCL and has good internal roads & water supply etc. But as the name suggests, the original built up area is only 666Sft , but ample room for expansion.
Phase 3 - under construction after Phase 2 and it almost comes behind BHEL backside gate. After few KM (may be 2-3 km arial) from this, ICRISAT compound starts. You can not directly buy these Phase 3 houses since Society has to allot them to members yet and then members need to convince the society that they can sell to outsiders.
Pros:
Clear titles & no land litigations
Good internal roads, water supply & drainage, power etc
Surrounded by lots of greenary
Convenience. Almost everything is available within the township. Frequent bus facility and autos facility from the township. Good schools nearby
Proposed TSI venutre might be around 2-3 kms from MIG2/1
Very good residential township for all IT folks working at Hitec City area(10KM) or Nanakramguda rea (9KM)
The new Wipro SEZ being built at Gopanapalli is 6-7KM
Close distance to ORR and Financial District
Prices:
Cost of each house in MIG Phase I: Rs 55-65 Lakhs (225 sq yards lot)
Cost of each house in MIG Phase II: Rs 40-46 Lakhs (200 sq yards lot)
Cost of each house in MIG Phase III: Rs 25 Lakhs (150 sq yards lot)
Cost of each house in HIG Phase I(Annamayya Enclave - Gated community): Rs 85-90 Lakhs (300 sq yards lot)
20. Gulmohar Park
HUDA Approved Residential township
Price of each house: Rs 80-90 Lakhs
21. Doyens Township
A decent gated residential township near HCU at Serilingampally
Each individual house costs around Rs 70-85 Lakhs
22. Secreteriate Colony
Very good residential colony at Puppalaguda
Cost per sq yard is around Rs 25000
23. OU Employees Colony
Very good residential colony near Manikonda
Most of the houses are on 180 sq yard plots
Cost of each house: Around Rs 45 Lakhs
24. Journalist Colony Phase III
HUDA Apprived plotted venture at Gopanapalli
Price: Rs 23000 per Sq Yd
25. Alkapoor Township
Price: Around Rs 16000 per Sq Yd
HUDA Approved venture at Narsingi
26. Anjali Gardens
A small gated community of villas at Puppalaguda, adjoining the Lanco IT Park border
Each villa price is around Rs 80-90 Lakhs
27. Bloomfield Elation
A gated apartment community at Nanakramguda
Price: Rs 3900-4300 per sq feet
28. Bloomfield Ecstacy
A gated community of high-end designer villas at Gopanapally
Close to the proposed APIIC IT Park and Tishman Speyers 400-acre Integrated Township at Tellapur
Cost of each villa: Rs 1.95 Cr
29. Whisper Valley
The first gated community in Hyderabad, Whisper Valley was a huge success and was a trend setter
Located next to Banjara Hills and Jubilee Hills
A residential township of 83 villas
30. Vision Avenues - Infinity Homes
Infinity Homes is a 25-acre upper-crest gated community of 120 equisite villas located at Tellapur
Cost of each villa: Rs 2.10 Cr
31. Aliens Valley
32. APBH Township
Located at Gachibowli near CMC Ltd and DLF IT Park
Land price: Upto Rs 40000/sq yd
Individual houses are priced around 90 Lakhs
33. KPHB Township
34. Nectar Garden
‘Nectar Garden Gated Community’ in Kavuri Hills is a gated community in 6+ acres which is located close to Durgam Cheruvu and many of the MNC IT Companies in walkable distance. All major school buses (Oakridge, DPS, Chirec) pick-up at the gate.
4400 sq.ft Townhomes: 2.70Cr - 3.5Cr (shared walls but, independent compound walls)
2500sft Luxury Apartments: 1.15Cr - 1.3Cr
35. Dews Ville
HUDA Approved plotted community at Bandlaguda
36. Westend Meadows
37. Greenlands
38. Malaysian Township (IJM Raintree Park)
39. Manjeera Diamond Towers
40. Aditya’s Eden Woods
41. Trendset Builders
Trendset Winz
Trendset Residency
42. Magadha Village
43. Asian Township at Shankarpalli
44. Villa Greens
45. Nagarjuna Residency at Gachibowli
Nagarjuna Residency is from the NCC Urban, a subsidiary of Nagarjuna Construction Company, located at the most happening location - Gachibowli, in a very close proximity to Hitec City.
The project has 460 units comprising two, three and four bed room apartments with plinth area of 2,340 sft, 2,690 sft, and 3,170 sft respectively.
30% Total Built up area ,70% open space
Provision for car parking area accomodating upto 950 cars
With 3 Lifts one Dedicated for material Movement
Price: Starting from Rs.4,250 per sftWebsite: www.nccurban.com
46. Alien’s Space Station at Tellapur
47. Ramky Towers
This mega project is from Ramky Group conceived in partnership with Andhra Pradesh Housing Board (APHB), located just 1/2KM from the Botanical Gardens and in close distance from the IT hub and HITEC City.
This project has in it to offer 13 lakh Sq ft of residential space, 1.2 lakh Sq ft of commercial space and also equipped with 20,000 sq ft of club house with all modern amenities.
Prices:Regular: Starting from Rs 3900 per sftDuplex: Starting from Rs 5000 per sft
Website: http://www.ramkyestates.com
48. Meenakshi’s Sky Lounge
49. AMSRI Brain Storm at Nanakramguda
50. Dhatri Cygne at Narsingi
51. Maple Town
52. Legend Harmony
53. L&T Infocity
54. Narne Elite at Manikonda
This venture has a very good location advantage, located very close to Delhi Public School, Lanco Hills and Lanco Mantri IT Park. This venture is developed by Narne.
55. Agarwal’s Fortune Homes
56. Bhanu Township
57. Casa Rouge at Kondapur (Srinivasa Hatcheries Group www.shgroup.in)
58. Laxmi Vihar Phase II
A psuedo gated community in Nallagandla. It is right next to Nallagandla HUDA layout and 1/2 KM from Aparna Sarovar venture. It is right next to the Railway Line(you can see this as disadvantage) and it is in walkable distance to Lingampally MMTS station(This is big advantage for regular commute to office).
Prices: I could not get any info on prices yet
59. Dream Valley
One of the first few gated communities in Hyderabad - It is in the Manikonda area near OU Employees Colony and there are 300, 400 and 700-800 sq yd villas with elevators from 2.5+ crores per Villa. The surrounding locality is rated low by few though.
Website: http://ourdreamvalley.com/
60. Aparna County at Hafeezpet
Aparna County at Hafeezpet is a gated community of 125 luxury villas lavishly spread on 23 acres. Each villa is on 350 sq yds plot with 3000-4000sft of constructed area.
Price of each villa: Rs 2.5Cr roughlyWebsite: www.aparnaconstructions.com
61. Bharat Iconia at Kondapur
The ICONIA by Bharat is a unique collection of future ready luxury condominiums in a 21 acre area, located at Kondapur near the Gachibowli stadium close to the Hi tech City in Hyderabad.
It is designed by the world renowned architects Atkins who are the creators of the worlds tallest all- suite hotel – the Burj Al Arab, Dubai.
The ICONIA offers 1908 sqft. and 2322 sqft. 3BHK apartments, 2925 sqft. 4BHK apartments and 5004 sqft. 5BHK apartments. The master plan comfortably accommodates eighteen, 20 storey high apartment towers, and includes a club house and recreation zones.
3BHK 1908 Apt: Rs 3799 per sft3BHK 2322 Apt: Rs 3999 per sft4BHK 2925 Apt: Rs 3999 per sft5BHK 5004 Apt: Rs 5299 per sft
Website: www.bharat.co.in
1. Vasantha Valley
Independent villas near Jayabheri Silicon Towers
2. Aparna Orchids
Fifty-nine tasteful villas created within 10 sprawling acres, Aparna Orchids is testament to the discerning eye of people. Located on prime property in Madhapur, Aparna Orchids is very much in the thick of all the action in Cyberabad.
Each Villa – 410 Sq Yds 3500 Sq Ft – 3-3.5 Cr
3. Indu Fortune Fields
A 65-acre enclave of gated communities that boasts of world-class facilities and amenities in an oriental ambience, just a whisk away from the HiTech city.
325 Sq Yards Villa, 3415 Sq.Ft - Rs 2-2.5 Cr
4. Myhome Navadweepa
Gated apartment community adjacent to Wipro near Hitec City, in walkable distance to most of the IT offices
3BR Apartment rents out for approximately Rs 30000 – 50000 per month
Venture completed in the year 2002
Cost of apartment: Rs 4500 per sq feet
5. Jayabheri Silicon County
Silicon County consists of 3 residential blocks, apart from a clubhouse
There are totally 14 towers spread over these 3 residential blocks. 6 towers have single level apartments and the remaining 8 towers have duplex apartments.
Each apartment in Silicon County is a study in elegance
Cost of each apartment: Rs 4500-5000 per sq feet
6. Lumbini SLN Springs
Lumbini Constructions Ltd, which is well known for quality commercial projects developed over the last 25 years, has come up with a premium residential project, SLN Springs at Gachibowli.
SLN Springs is a 15-acre gated community of independent duplex houses in the most sought after place of Gachibowli, abutting the proposed express highway connecting the old and new Bombay Highway and right next to the famed Botanical Gardens, offering a pollution-free, visual retreat.
The community offers 95 high-end duplex homes on plots of 400 – 1000 sq yards priced around Rs 3.5 Crore per house
7. Rolling Hills
A fine gated community of posh bungalows located at Gachibowli close to Hitec City
Each villa is on a 546 sq yards plot with 4500 sq ft
Price of each villa: Rs 2.5 – 3.5 Cr
8. Meenakshi “The Bamboos”
Ultra luxury Villas for up to 4.5Cr per Villa
HUDA Approved layout
Located close to Hitec City in Gachibowli
9. QuietLands
A posh residential colony of independent Duplex-type bungalows in the most serene and peaceful environs at Gachibowli
QuitLands is right on the Old Mumbai Highway
Each villa around Rs 1.5 Cr
10. IVRCL HillRidge Apartments and Villas
A beautiful project right in the middle of the knowledge corridor, near ISB
Residential 2,3,4 Bedroom Apartments in 36 acres with floating gardens
5 bedroom independent Villas - Around 3.5 Cr for 450sq.yds Villa
11. SMR Vinay Technopolis
“SMR VINAY TECHNOPOLIS” is an ode to design, both inside and outside. The complex is made up of 2 and 3 bed room apartments
It is located close to Jayabheri Silicon County near Hitec City
Built on a 2-Acre lot in year 2005, these premium apartments cost around Rs 50-70 Lakhs each
12. Lanco Hills
LANCO Hills, Hyderabad is a unique project being developed by LANCO Group. It is one of the largest mixed developments in India at over 18 million sq. ft. in an 100 acre site With an investment of over US $ 80 million.
LANCO Hills, Hyderabad will become a landmark in India, with its high rise residential towers, office towers, service apartments, hotels, a mall and one of the largest entertainment zones. Another unique feature of LANCO Hills, Hyderabad is its 90 level residential tower - one of the tallest buildings in India.
A super structure of 90 levels, the tallest in India
16 residential towers of up to 30 levels high
4 level mall structure with a 2 million sq. ft. mall and a 3 level covered parking
Entertainment zone with a 12 screen multiplex and a 22 acre lake
A commercial complex with several retail and business outlets
Apartments price: Upto Rs 4600/sq ft in the first phase
13. Aparna Shangrila
APARNA SHANGRILA is a Gated Layout of high-end bungalows just Beside Wipro/Polaris
355 SQD (with 3600 SFT), 450 SQD (with 4200 SFT) Bungalows - 3.5+ Cr per Villa
14. Jayabheri Four Seasons
Gated community of plots located at Gopanapalli close to the Microsoft, Infosys campuses
CDA Approved Layout with prices upto Rs 30,000 per sq yard
15. Lalitha Bloomfield
Vasudeva Realtors’ Lalitha Bloomfield is a magnificient 4-acre layout located at Nanakramguda, very close to Oakridge International School and Delhi Public School, and the Financial District
It is a gated community of 40 beautiful bungalows of world class and state-of-the-art comfort, being developed by Vasudeva Realtors
Priced around Rs 1.85 Cr per villa
16. Aparna Laketown and Aparna Sarovar
‘Aparna Laketown’ is a joint venture between Aparna Constructions and Morgan Stanley to provide high-end housing and commercial development project at Nallagandla in Hyderabad, overing 12 million square feet. This would include an integrated retail and entertainment complex and a branded hotel.
Aparna is also coming up with lifestyle apartments in the same townshiop, which is named as “Aparna Sarovar”. The apartment prices range from Rs 3300/sq ft. The construction of Sarovar apartments has been progressing well. Jerde Partnership Inc does the whole planning, LA who are also the architects of the Mall of America, Minneapolis and Bellagio in Las Vegas.
17. Aparna Cyber County
Aparna Cyber County is a gated community of over 2.2 lakhs built-up area which nestles 59 superbly-crafted bungalows. It is spread over 11Acres of land. It is located at Gopanapally, 6KM from Gachibowli and other IT parks and replete with every possible modern amenity. Whether it’s the information highway or the road to shopping / life / happiness, you’re never more than a stone’s throw away from the perfect life.
18. Jayabheri Orange County
Jayabheri Orange County at Nanakramguda is high-end apartment community with features such as ‘No common walls’, ‘Centralized cooking gas with individual metering facility’, ‘duplex apartments’, ‘generator backup’ etc. It is at walkable distance to many of the IT offices such as Wipro, CA, Microsoft, Polaris etc. The apartments are priced Rs 4500/sq ft.
19. BHEL Township (MIG Phase I,II,III and Annamayya Enclave)
BHEL Township is a huge residential township located at Nallagandla. These houses are next to Tellapur. MIG is divided into three phases.
Phase 1 - More than 12 years old colony with mostly 230-250 sq Yd independent houses with lots of shops, schools, banks, bus facility etc etc. It is old HUDA layout, so you will have 40 feet and 33 feet roads mostly.
Phase 2 - It is almost 5 years old. A new HUDA layout with 60 ft & 40 ft roads and almost all house are 200 Sq Yards. It is behind Phase 1, separated by some barren land & urban forestry of a stretch of approx 1 km. Since it is a new colony , you do not have too many shops, commericla establishments etc. City bus facility is also not frequent. Also this colony is next to Mumbai rail way line and if they go a head with MMTS phase 2 , mostly likely you will get a station behind this colony.
These are built by IVRCL and has good internal roads & water supply etc. But as the name suggests, the original built up area is only 666Sft , but ample room for expansion.
Phase 3 - under construction after Phase 2 and it almost comes behind BHEL backside gate. After few KM (may be 2-3 km arial) from this, ICRISAT compound starts. You can not directly buy these Phase 3 houses since Society has to allot them to members yet and then members need to convince the society that they can sell to outsiders.
Pros:
Clear titles & no land litigations
Good internal roads, water supply & drainage, power etc
Surrounded by lots of greenary
Convenience. Almost everything is available within the township. Frequent bus facility and autos facility from the township. Good schools nearby
Proposed TSI venutre might be around 2-3 kms from MIG2/1
Very good residential township for all IT folks working at Hitec City area(10KM) or Nanakramguda rea (9KM)
The new Wipro SEZ being built at Gopanapalli is 6-7KM
Close distance to ORR and Financial District
Prices:
Cost of each house in MIG Phase I: Rs 55-65 Lakhs (225 sq yards lot)
Cost of each house in MIG Phase II: Rs 40-46 Lakhs (200 sq yards lot)
Cost of each house in MIG Phase III: Rs 25 Lakhs (150 sq yards lot)
Cost of each house in HIG Phase I(Annamayya Enclave - Gated community): Rs 85-90 Lakhs (300 sq yards lot)
20. Gulmohar Park
HUDA Approved Residential township
Price of each house: Rs 80-90 Lakhs
21. Doyens Township
A decent gated residential township near HCU at Serilingampally
Each individual house costs around Rs 70-85 Lakhs
22. Secreteriate Colony
Very good residential colony at Puppalaguda
Cost per sq yard is around Rs 25000
23. OU Employees Colony
Very good residential colony near Manikonda
Most of the houses are on 180 sq yard plots
Cost of each house: Around Rs 45 Lakhs
24. Journalist Colony Phase III
HUDA Apprived plotted venture at Gopanapalli
Price: Rs 23000 per Sq Yd
25. Alkapoor Township
Price: Around Rs 16000 per Sq Yd
HUDA Approved venture at Narsingi
26. Anjali Gardens
A small gated community of villas at Puppalaguda, adjoining the Lanco IT Park border
Each villa price is around Rs 80-90 Lakhs
27. Bloomfield Elation
A gated apartment community at Nanakramguda
Price: Rs 3900-4300 per sq feet
28. Bloomfield Ecstacy
A gated community of high-end designer villas at Gopanapally
Close to the proposed APIIC IT Park and Tishman Speyers 400-acre Integrated Township at Tellapur
Cost of each villa: Rs 1.95 Cr
29. Whisper Valley
The first gated community in Hyderabad, Whisper Valley was a huge success and was a trend setter
Located next to Banjara Hills and Jubilee Hills
A residential township of 83 villas
30. Vision Avenues - Infinity Homes
Infinity Homes is a 25-acre upper-crest gated community of 120 equisite villas located at Tellapur
Cost of each villa: Rs 2.10 Cr
31. Aliens Valley
32. APBH Township
Located at Gachibowli near CMC Ltd and DLF IT Park
Land price: Upto Rs 40000/sq yd
Individual houses are priced around 90 Lakhs
33. KPHB Township
34. Nectar Garden
‘Nectar Garden Gated Community’ in Kavuri Hills is a gated community in 6+ acres which is located close to Durgam Cheruvu and many of the MNC IT Companies in walkable distance. All major school buses (Oakridge, DPS, Chirec) pick-up at the gate.
4400 sq.ft Townhomes: 2.70Cr - 3.5Cr (shared walls but, independent compound walls)
2500sft Luxury Apartments: 1.15Cr - 1.3Cr
35. Dews Ville
HUDA Approved plotted community at Bandlaguda
36. Westend Meadows
37. Greenlands
38. Malaysian Township (IJM Raintree Park)
39. Manjeera Diamond Towers
40. Aditya’s Eden Woods
41. Trendset Builders
Trendset Winz
Trendset Residency
42. Magadha Village
43. Asian Township at Shankarpalli
44. Villa Greens
45. Nagarjuna Residency at Gachibowli
Nagarjuna Residency is from the NCC Urban, a subsidiary of Nagarjuna Construction Company, located at the most happening location - Gachibowli, in a very close proximity to Hitec City.
The project has 460 units comprising two, three and four bed room apartments with plinth area of 2,340 sft, 2,690 sft, and 3,170 sft respectively.
30% Total Built up area ,70% open space
Provision for car parking area accomodating upto 950 cars
With 3 Lifts one Dedicated for material Movement
Price: Starting from Rs.4,250 per sftWebsite: www.nccurban.com
46. Alien’s Space Station at Tellapur
47. Ramky Towers
This mega project is from Ramky Group conceived in partnership with Andhra Pradesh Housing Board (APHB), located just 1/2KM from the Botanical Gardens and in close distance from the IT hub and HITEC City.
This project has in it to offer 13 lakh Sq ft of residential space, 1.2 lakh Sq ft of commercial space and also equipped with 20,000 sq ft of club house with all modern amenities.
Prices:Regular: Starting from Rs 3900 per sftDuplex: Starting from Rs 5000 per sft
Website: http://www.ramkyestates.com
48. Meenakshi’s Sky Lounge
49. AMSRI Brain Storm at Nanakramguda
50. Dhatri Cygne at Narsingi
51. Maple Town
52. Legend Harmony
53. L&T Infocity
54. Narne Elite at Manikonda
This venture has a very good location advantage, located very close to Delhi Public School, Lanco Hills and Lanco Mantri IT Park. This venture is developed by Narne.
55. Agarwal’s Fortune Homes
56. Bhanu Township
57. Casa Rouge at Kondapur (Srinivasa Hatcheries Group www.shgroup.in)
58. Laxmi Vihar Phase II
A psuedo gated community in Nallagandla. It is right next to Nallagandla HUDA layout and 1/2 KM from Aparna Sarovar venture. It is right next to the Railway Line(you can see this as disadvantage) and it is in walkable distance to Lingampally MMTS station(This is big advantage for regular commute to office).
Prices: I could not get any info on prices yet
59. Dream Valley
One of the first few gated communities in Hyderabad - It is in the Manikonda area near OU Employees Colony and there are 300, 400 and 700-800 sq yd villas with elevators from 2.5+ crores per Villa. The surrounding locality is rated low by few though.
Website: http://ourdreamvalley.com/
60. Aparna County at Hafeezpet
Aparna County at Hafeezpet is a gated community of 125 luxury villas lavishly spread on 23 acres. Each villa is on 350 sq yds plot with 3000-4000sft of constructed area.
Price of each villa: Rs 2.5Cr roughlyWebsite: www.aparnaconstructions.com
61. Bharat Iconia at Kondapur
The ICONIA by Bharat is a unique collection of future ready luxury condominiums in a 21 acre area, located at Kondapur near the Gachibowli stadium close to the Hi tech City in Hyderabad.
It is designed by the world renowned architects Atkins who are the creators of the worlds tallest all- suite hotel – the Burj Al Arab, Dubai.
The ICONIA offers 1908 sqft. and 2322 sqft. 3BHK apartments, 2925 sqft. 4BHK apartments and 5004 sqft. 5BHK apartments. The master plan comfortably accommodates eighteen, 20 storey high apartment towers, and includes a club house and recreation zones.
3BHK 1908 Apt: Rs 3799 per sft3BHK 2322 Apt: Rs 3999 per sft4BHK 2925 Apt: Rs 3999 per sft5BHK 5004 Apt: Rs 5299 per sft
Website: www.bharat.co.in
Personal Touch - Marketing Strategy
Marketing Team sould allways listen and keep in contact with buyers and sellers are crucial.
Here are five things you should expect an agent to be doing.
1. Finding out about potential new owners.
2. Scheduling consistent updates.
Every Monday, Prudential's Stevens sends out reports that show how many people have looked at the listings on various Web sites, and other details about how the marketing plan is proceeding.
Murphy's clients also know they will hear from her through weekly client conferences via e-mail or phone. "We're going over what's going on as far as the market, not just locally but globally," Murphy said. "The seller nowadays, and the buyer, they're just more informed.
They want to be more actively participating in all of that. I utilize them in the planning of all of it."
3. Following up promptly.
Sellers want timely responses, and they want to know what's working, Murphy said.
Smith and Marshall Berch, Re/Max Metro Atlanta agents who have worked together for about eight years and been in the business for 16 years each, say they keep in "constant contact" with sellers to provide feedback from showings and update them on what nearby listings have sold, what hasn't sold and what's new on the market.
"A lot of the frequency is driven by the individual client. Some of our clients need daily contact; some of them want monthly contact," Smith said.
"The amount of contact we have with them is more often, because the house is on the market a longer time," Berch said.
4. Being an adviser to buyers.
Extras like limo rides from the airport and concierge services are something Stevens offers to out-of-town buyers, but she doesn't have many takers. "With a buyer, it's just taking the time," she said. "It's more of a time issue than it is forking out a lot of money."
That includes taking clients out to eat, showing them the community and spending time on the computer doing research and in phone calls to update buyers on potential properties. "People are looking at more homes.
There's so much on the market, they get a little confused," Stevens said.
5. Keeping the door open — virtually.
Clients of Kenny Cook Realty Metro Atlanta can log onto the company's Web site to see scheduled showings and feedback, how many hits online listings and virtual tours have received — even when the flier box was filled.
"If they're up at midnight and just kind of curious, they can check in on there," Casey said.
Here are five things you should expect an agent to be doing.
1. Finding out about potential new owners.
2. Scheduling consistent updates.
Every Monday, Prudential's Stevens sends out reports that show how many people have looked at the listings on various Web sites, and other details about how the marketing plan is proceeding.
Murphy's clients also know they will hear from her through weekly client conferences via e-mail or phone. "We're going over what's going on as far as the market, not just locally but globally," Murphy said. "The seller nowadays, and the buyer, they're just more informed.
They want to be more actively participating in all of that. I utilize them in the planning of all of it."
3. Following up promptly.
Sellers want timely responses, and they want to know what's working, Murphy said.
Smith and Marshall Berch, Re/Max Metro Atlanta agents who have worked together for about eight years and been in the business for 16 years each, say they keep in "constant contact" with sellers to provide feedback from showings and update them on what nearby listings have sold, what hasn't sold and what's new on the market.
"A lot of the frequency is driven by the individual client. Some of our clients need daily contact; some of them want monthly contact," Smith said.
"The amount of contact we have with them is more often, because the house is on the market a longer time," Berch said.
4. Being an adviser to buyers.
Extras like limo rides from the airport and concierge services are something Stevens offers to out-of-town buyers, but she doesn't have many takers. "With a buyer, it's just taking the time," she said. "It's more of a time issue than it is forking out a lot of money."
That includes taking clients out to eat, showing them the community and spending time on the computer doing research and in phone calls to update buyers on potential properties. "People are looking at more homes.
There's so much on the market, they get a little confused," Stevens said.
5. Keeping the door open — virtually.
Clients of Kenny Cook Realty Metro Atlanta can log onto the company's Web site to see scheduled showings and feedback, how many hits online listings and virtual tours have received — even when the flier box was filled.
"If they're up at midnight and just kind of curious, they can check in on there," Casey said.
G.O No 288 and G.O no 470 Practicality...
In Hyderabad, G.O. No. 288 mandates that builders allocate 25 per cent of the total built-up area for the low and middle-income groups.
And G.O. No. 470 contains similar provisions for development activity within 1 km on either side of the 162-km Outer Ring Road that encircles the city.
The real-estate activity in Hyderabad has virtually come to a standstill, with builders preferring to shelve their plans, thanks to G.O. No. 288. The order, issued a couple of months ago, mandates that builders allocate 25 per cent of the total built-up area for the low and middle-income groups.
If builders think that this is a dampener, a fresh Order (G.O. No. 470) issued on Friday would add to their woes.
It also contains similar provisions for all the development activity within 1 km on either side of the 162-km Outer Ring Road that encircles the city.
"Five per cent would go to economically weaker sections (EWS), and 10 per cent each for low and middle-income groups (LIG, MIG) in all projects that are over one acre," says Mr C Sekhar Reddy, President of Builders' Forum.
The order also stipulates a plot size of up to 100 sq.m for LIG and MIG housing units. Builders, small and big, feel that this would burden the real-estate activity, which has already been running through a very bad patch.
"This is totally unreasonable and impractical. No one is submitting applications of late, fearing that the projects could be unviable," says Mr Sekhar Reddy.
An agitated Builders' Forum met the Chief Minister, Dr Y.S. Rajasekhara Reddy, and Urban Development officials to seek doing away with the provisions and look for practical alternatives. The Government, however, argues that this order is in tune with National Housing Policy and Jawaharlal Nehru National Urban Renewal Mission to provide affordable housing to the people.In case of layout development, the HUDA (Hyderabad Urban Development Authority) should be given 5 per cent of the total area free of cost.
The 25 per cent allotment norm to EWS, LIG and MIG holds good here as well."The owner of any land or groups of owners and developers who intend to sub-divide or layout the land in such areas into building plots are required to mortgage 25 per cent of the saleable land to HUDA as surety for carrying out the developments and complying with other conditions in the given time.
In case of failure, HUDA is empowered to sell the mortgaged plots and utilise the amount for completing the development works," says the order. Industry contention Mr Bhawarlal Jain, Director, Sunway Opus International Private Ltd, says there is no denying that the real-estate sector has social responsibility. "But the thing is, developers spend a fortune on buying the land parcel and development. It would be difficult for us to give them at affordable costs," he says. While echoing his views, Mr Sekhar Reddy points out that after they spend a lot of money on buying, development and construction, the cost of the units will go up significantly.
Explaining the cost aspect, Mr Reddy says a typical 440 sq.ft house for economically weaker sections could cost Rs 13.20 lakh (at Rs 3,000 per sq.ft) even if developers offered them lower prices in most of the areas. "You need to add registration fee, value added tax and other costs that will increase the total cost by at least another Rs 4 lakh. Can the economically weaker section afford this," he asks.
The costs for LIG and MIG housing too would go up proportionately. "Space availability should be a parameter for the social mandate. The mandate should be for townships with land area more than 400 acres. Townships with land area less than 400 acres cannot provide small houses at affordable prices," according to Mr Sumith Reddy, Head, Residential Townships Vertical of Maytas Properties (AP region).'Wrong signals' Mr Sekhar Reddy says the builders have had a few rounds of discussions with the Government. "We pay a hefty fee to the Government on several heads.
Land cost in a project is about 40 per cent. Costs of all other inputs, including the fee, are shooting up, making the per sq.ft rates spiral. I don't think people in the lower and middle-income groups could go for the flats, considering the huge costs," he says. He argues that these provisions are not in the original draft circulated by the Government for soliciting views. This, according to him, would send wrong signals to the investors from the outside. "The private sector can't do it.
It can be done in public-private partnerships. If the Government can contribute land, we can provide our expertise and ensure affordable housing for the targeted sections," he says. Follow Hong Kong model Mr Anand Reddy, Director of PBEL, an Indo-Israeli joint venture, feels the Government should contribute its mite.
"There are two things that are crucial in this. The Government should ensure proper infrastructure support. Besides, it should offer incentives (such as waiver of taxes and fee) for the projects." According to him, every consumer pays 40 per cent of the housing cost to Government in various forms. "If this is waived off, they can get affordable housing," he says. He suggests that the Government follow the Hong Kong model.
"The Government and private developers formed Hong Kong Housing Authority that provides subsidised loans (up to 0 per cent) to the needy. Besides, they build commercial space and the revenue generated out of it will again be ploughed back into the affordable housing scheme," he says.Social barriers "This could also create social issues as well. It will create a problem as this GO creates an awkward situation with people of different levels of income requiring to stay together. It will lead to socio-economic mismatch," says a builder who doesn't want to be quoted.
"The GO is not practical because the government is trying to demand some area, free of cost, without giving any incentives to builders," Mr K Ravinder Reddy, Chairman of Janapriya Engineers Syndicate, a real-estate company that pioneered affordable housing in Andhra Pradesh, feels."It also overlaps with plans of builders to provide group housing projects targeted at the middle class. It is a hindrance to development and will be a mismatch of rich and poor living in the same group housing," he adds.
And G.O. No. 470 contains similar provisions for development activity within 1 km on either side of the 162-km Outer Ring Road that encircles the city.
The real-estate activity in Hyderabad has virtually come to a standstill, with builders preferring to shelve their plans, thanks to G.O. No. 288. The order, issued a couple of months ago, mandates that builders allocate 25 per cent of the total built-up area for the low and middle-income groups.
If builders think that this is a dampener, a fresh Order (G.O. No. 470) issued on Friday would add to their woes.
It also contains similar provisions for all the development activity within 1 km on either side of the 162-km Outer Ring Road that encircles the city.
"Five per cent would go to economically weaker sections (EWS), and 10 per cent each for low and middle-income groups (LIG, MIG) in all projects that are over one acre," says Mr C Sekhar Reddy, President of Builders' Forum.
The order also stipulates a plot size of up to 100 sq.m for LIG and MIG housing units. Builders, small and big, feel that this would burden the real-estate activity, which has already been running through a very bad patch.
"This is totally unreasonable and impractical. No one is submitting applications of late, fearing that the projects could be unviable," says Mr Sekhar Reddy.
An agitated Builders' Forum met the Chief Minister, Dr Y.S. Rajasekhara Reddy, and Urban Development officials to seek doing away with the provisions and look for practical alternatives. The Government, however, argues that this order is in tune with National Housing Policy and Jawaharlal Nehru National Urban Renewal Mission to provide affordable housing to the people.In case of layout development, the HUDA (Hyderabad Urban Development Authority) should be given 5 per cent of the total area free of cost.
The 25 per cent allotment norm to EWS, LIG and MIG holds good here as well."The owner of any land or groups of owners and developers who intend to sub-divide or layout the land in such areas into building plots are required to mortgage 25 per cent of the saleable land to HUDA as surety for carrying out the developments and complying with other conditions in the given time.
In case of failure, HUDA is empowered to sell the mortgaged plots and utilise the amount for completing the development works," says the order. Industry contention Mr Bhawarlal Jain, Director, Sunway Opus International Private Ltd, says there is no denying that the real-estate sector has social responsibility. "But the thing is, developers spend a fortune on buying the land parcel and development. It would be difficult for us to give them at affordable costs," he says. While echoing his views, Mr Sekhar Reddy points out that after they spend a lot of money on buying, development and construction, the cost of the units will go up significantly.
Explaining the cost aspect, Mr Reddy says a typical 440 sq.ft house for economically weaker sections could cost Rs 13.20 lakh (at Rs 3,000 per sq.ft) even if developers offered them lower prices in most of the areas. "You need to add registration fee, value added tax and other costs that will increase the total cost by at least another Rs 4 lakh. Can the economically weaker section afford this," he asks.
The costs for LIG and MIG housing too would go up proportionately. "Space availability should be a parameter for the social mandate. The mandate should be for townships with land area more than 400 acres. Townships with land area less than 400 acres cannot provide small houses at affordable prices," according to Mr Sumith Reddy, Head, Residential Townships Vertical of Maytas Properties (AP region).'Wrong signals' Mr Sekhar Reddy says the builders have had a few rounds of discussions with the Government. "We pay a hefty fee to the Government on several heads.
Land cost in a project is about 40 per cent. Costs of all other inputs, including the fee, are shooting up, making the per sq.ft rates spiral. I don't think people in the lower and middle-income groups could go for the flats, considering the huge costs," he says. He argues that these provisions are not in the original draft circulated by the Government for soliciting views. This, according to him, would send wrong signals to the investors from the outside. "The private sector can't do it.
It can be done in public-private partnerships. If the Government can contribute land, we can provide our expertise and ensure affordable housing for the targeted sections," he says. Follow Hong Kong model Mr Anand Reddy, Director of PBEL, an Indo-Israeli joint venture, feels the Government should contribute its mite.
"There are two things that are crucial in this. The Government should ensure proper infrastructure support. Besides, it should offer incentives (such as waiver of taxes and fee) for the projects." According to him, every consumer pays 40 per cent of the housing cost to Government in various forms. "If this is waived off, they can get affordable housing," he says. He suggests that the Government follow the Hong Kong model.
"The Government and private developers formed Hong Kong Housing Authority that provides subsidised loans (up to 0 per cent) to the needy. Besides, they build commercial space and the revenue generated out of it will again be ploughed back into the affordable housing scheme," he says.Social barriers "This could also create social issues as well. It will create a problem as this GO creates an awkward situation with people of different levels of income requiring to stay together. It will lead to socio-economic mismatch," says a builder who doesn't want to be quoted.
"The GO is not practical because the government is trying to demand some area, free of cost, without giving any incentives to builders," Mr K Ravinder Reddy, Chairman of Janapriya Engineers Syndicate, a real-estate company that pioneered affordable housing in Andhra Pradesh, feels."It also overlaps with plans of builders to provide group housing projects targeted at the middle class. It is a hindrance to development and will be a mismatch of rich and poor living in the same group housing," he adds.
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