Interest Rates for Real Estate Loans may go Up

These is a possibility that the Reserve Bank of India (RBI) may make borrowing more expensive for builders by asking banks to set aside more capital for loans to commercial real estate projects. Due to higher capital requirement, banks will have to raise interest rate on such loans.

Senior banking professionals feel that RBI may either raise standard provisioning or risk weight on bank loans to real estate companies in the forthcoming policy.

As per an official of Indian Overseas Bank, If RBI does not raise cash reserve ratio and keep signalling rates like repo rate and reverse-repo rate untouched, my feeling is that it may tighten the prudential norms. A hike in risk weight, particularly on real estate loans, is not ruled out."

Risk weight is the capital that is set aside for the calculation of capital adequacy ratio, which is 9 per cent for all banks. For real estate companies, risk weight is 100 per cent, irrespective of the rating due to which banks have to keep aside Rs 9 for every Rs 100 loan to builders.

The Tellapur Story...

With signs of economic recovery and reality sector beginning to gather momentum, Tellapur Technocity Pvt Ltd has come forward to go ahead with its integrated township project at Tellapur in Ramachandrapuram Mandal in Medak district. The project was put on hold two years ago.

However, the proposed integrated township would have a different plan and not as announced as a 400-acre project at one go. The developer has proposed to take up the project in a phased manner beginning with a Special Economic Zone (SEZ) for Information Technology companies.

Hyderabad Metropolitan Development Authority (HMDA) sources said Tellapur Technocity, which is a consortium led by Tishman Speyers, ICICI and Nagarjuna Constructions Company, met the metropolitan authority officials a few days ago and expressed their willingness to take up the project.

“The developer has reworked on the integrated township and presented a proposal for SEZ in 100 acres as it paid land cost. The proposal is being examined,” a senior HMDA official said.

The 400-acre integrated township was planned along the Outer Ring Road (ORR) and close to Hi-Tec City and financial district at Gachibowli which falls in Tellapur village in Medak district. As per the original proposal, 30 million square feet built up area was to be provided in the township in eight years for Class A commercial, residential, recreational and mixed use.

The consortium, which turned into a special purpose vehicle Tellapur Technocity Pvt Ltd, has paid Rs 420 crore to HMDA in 2007 towards the land cost at the rate of Rs 4.21 crore per acre. The consortium was supposed to pay the balance amount, about Rs 1,700 crore, within six months. But the developer was reluctant to take up the project due to the slump in the real estate market for the past two years.

“We did not insist Tellapur Technocity to pay the balance as of the 400 acres, 240 acres are in legal wrangles and only 160 acre is free from litigation,” another HMDA official said.

Meanwhile, HMDA is mulling on providing Ramky Infrastructure more time to pay development premium for Srinagar township. The developer was supposed to pay development premium of Rs 25 crore in June, 2009, but sought six month extension which expired in January, 2010.

The township was proposed in about 700 acres at Srinagar in Maheshwaram Mandal of Ranga Reddy district. Due to legal problems, the HMDA denotified about 200 acre land from acquisition of the total 700 acres proposed. Later, both Ramky and erstwhile Hyderabad Urban Development Authority entered into an agreement to take up the project under public-private partnership in 355 acres of which 200 acres is government land and 155 acres private land. “Of the Rs 100 crore development premium, Rs 25 crore was paid in 2008 and the balance was to be paid within six months, but the developer did not pay the amount due to land problems,” he added.

Choosing Decent Localities In Hyderabad With Reasonable Realty Prices

There has always been a good demand for affordable housing in Hyderabad. For many people Hyderabad is one of the preferred cities to get settled. Amidst growing demand during boom times, Hyderabad city became Greater Hyderabad from April 2007 and has grown from 175 sq. km to 650 sq. km and is divided into 5 Zones. The reality prices were exorbitant during those times, however later that showed some respite at least in some localities.

With the expansion of the city, many people are unable to figure out the best area to buy a house at affordable price and stay close to the city. Many of them are not aware of the prices in different zones of Hyderabad and are purchasing houses far away from the center of the city, often at higher prices. The information given below gives you an idea of the property pricing in Hyderabad and the detailed table may help you in decision making while purchasing a house.

Prices of properties in some interesting localities
North Zone: Double bedroom flats at Sainikpuri and Yapral are available at around Rs. 19 lakhs. At Balanagar, they will cost around Rs. 26 lakhs.

East Zone: A 2 bedroom flat at Mallapur costs around Rs. 19 lakhs only. It will cost around Rs. 23 lakhs at Bandlaguda or Uppal.

South Zone: A 2 bedroom flat at Dilsukhnagar costs around Rs. 23 lakhs. At L.B nagar, it would be bit more expensive at around Rs. 25 lakhs.

West Zone: Double bedroom flats at Chandanagar cost around Rs. 14 lakhs (around 900 sq. ft.). When it comes to Kukatpally and Miyapur, double bedroom flats range between Rs. 29 and Rs. 34 lakhs.

Expensive localities
According to the property prices listed in the outlook money recently, the most expensive area in the city is Begumpet. If you want to buy a double bedroom flat in Begumpet area, it would cost you around Rs. 48 lakhs of rupees. They are more costly than the flats at Kondapur, which cost around Rs. 40 lakhs.

Reasonable places to buy a flat
Flats at Mallapur are the most affordable as they cost under Rs. 20 lakhs and most importantly, they are not far away from the main city. One more option you can consider is Uppal. The distance between Begumpet and these areas is approximately 15 kms. Double bedroom flats at Ramanthapur are also affordable at Rs. 25 lakhs and are very close to the center of the city.

Click to view detailed list of property prices in Hyderabad

Note: Have mentioned the approximate prices of double bedroom flats with areas ranging from 1100 to 1200 sq. ft. just to give you an idea of the pricing in different locations. The prices will vary depending on the exact location of the property.

CyberCity Builders Coming with another venture near Hitech City

Cybercity to Construct Premium Integrated High-Rise Township at Hi-tech City

March 31, 2010

Is recession over? Will people buy flats with rich amenities at Hitech city? ‘Yes’ says Cybercity Builders and Developers. Recently they have launched a latest project offering two and three bedrooms flats with rich amenities at Rock Gardens near Hitec-city MMTS station.

Cybercity Builders & Developers is promoted by Ashoka Developers & Builders. They are about to construct 1,220 units with feature-rich amenities and a fully loaded clubhouse spread over an area of four acres at recently launched residential apartments ‘Rainbow Vistas @ Rock Garden’ at Hi-Tech City. The overall cost of the project is said to be around Rs.570 crore.

According to the CEO of Cybercity Builders & Developers, the apartments would range between 1,085 sq. ft. and 2,075 sq. ft. and they will be costing between Rs.30 lakh and Rs.65 lakh. It is said that the project would be completed in two phases. Apartments with 600 flats will be ready in a span of two years in the first phase.

This integrated high-rise township with four-acre central park is said to have a world-class clubhouse on hilltop. Apart from this, it is said to consist all the amenities like grocery store, pharmacy, travel desk, utility payment office, strong room with safe deposit lockers and car washing area to make the stay hassle-free.

Visakhapatnam - Market Research

Visakhapatnam:When one of the top 20 pharma giants in the world, Eisai Pharmaceuticals of Japan, inaugurated its global research and development and production facility in Visakhapatnam last month, it was not just another feather in the cap of the city that is being dubbed as the ‘city of destiny’. Rather, it was a harbinger of how significant the city has become in recent times and how fast it is developing into a major centre on the eastern coast.

The Telangana issue, which has forced planners to look beyond Hyderabad, has given a fresh impetus to the city. Known till recently for the Eastern Naval Command and the steel plant, Vizag is fast transforming into an IT hub, a pharma junction and a real estate goldmine. Lying on the Chennai-Kolkata coastal corridor, the city is home to the biggest special development zone, called the Petroleum, Chemical and Petrochemical Investment Region (PCPIR), where an investment of $80 billion is expected.

The Vizag Urban Development Authority (VUDA), touching four districts, is the third biggest in the country after Bangalore and Mumbai. At least 25 IT companies are coming up here — three are already operational, four will be operational in a month and others by the end of 2010.

Like Hyderabad, IT is proving to be the catalyst for accelerated development here, forcing the authorities to lay four-lane roads and revamp public transport and civic infrastructure. Recently, a new fleet of metro buses was introduced and townships are being planned to meet the growing demand.

“There is an investment of Rs 700 to 800 crore in the IT sector here. We are looking at 20,000-30,000 jobs by the end of 2010,” said Naresh Kumar, head of Symbiosis Technologies which started in November.

Blessed with a natural harbour, the coastline is jotted with small hills that earlier prevented its growth, but private and public entrepreneurship has meant that the city is now growing on these hills. The country’s most picturesque IT parks have come up on Hill no 2 and 3 near Rushikonda and Madhurwada and another one is coming up at Ghambhiram.

“Considering that a majority of the people working in Hyderabad, Chennai and Bangalore in the IT industry are from coastal Andhra, most of them may return to Vizag as the industry develops here. Companies which have data storages in Hyderabad or Bangalore are looking at a second place to store backups and Vizag is proving to be an ideal location. A couple of years ago, finding even 10,000 sq feet of ready office space was difficult. Today, there are people with one lakh sq feet space ready to be occupied,” added Kumar.

The city has also become a pharma zone with more than 20 major pharma companies coming up here. The Jawaharlal Nehru Pharma City, developed by Ramky Group in collaboration with AP Industrial Infrastructure Corporation (APIIC), has 17 pharmaceutical companies. The adjacent Pharma SEZ has two global giants — Eisai Pharma of Japan and Pharmagel of Germany.

“The infrastructure and the facilities provided here are attracting investment. Good investment environment, large talent pool and easy access to global destinations due to the presence of ports are of great advantage. After Japan, the US and UK, this is our new research and development centre. We plan to manufacture 2 billion tablets and 30 tonnes of formulations per annum,” said Eisai Knowledge Centre head Sanjit Singh Lamba.

Executive Director of AP Industrial Infrastructure Corporation (APIIC) Ishwar Rao said that besides the existing 17 companies in the pharma SEZ, another 30 companies will come up within a year. “A multi-product SEZ of 6,000 acres is coming up besides the Brandix Apparel SEZ. All this has injected life into Vizag. The Gangavaram and Vizag port and excellent connectivity to Kakinada port, 180 km away, have made it the gateway,” added Rao.

“The city is looking at slingshot development in the next five years. The three growth engines are infrastructure, IT & ITES and travel and tourism. The existing 20 lakh population is expected to reach 50 lakh in the next five years, so Rs 1,500 crore is being invested under the JNNURM to upgrade the civic infrastructure,” said vice-chairman of VUDA V N Vishnu.

Spread over 603 sq km near Vizag, the PCPIR will see several mega integrated petrochemical complexes and refineries coming up like never before in a single corridor that extends across the coast from Vizag to Kakinada. The HPCL is the nodal organisation which will anchor the development of infrastructure, in association with APIIC.

“Unlike other cities, Vizag’s real estate prices have remained stable and there is only a marginal drop in rates. That is because 70 per cent of the population is employed with PSUs like steel plant, shipyard, naval dock yard, HPCL, and have a permanent income. The demand for real estate has been steady and not subject to recession. The city is developing so fast that residential layouts some 30 to 40 km from the city centre are being lapped up immediately,” said N V Satya, president of Apartment Builders Association.

RealEstate - UNION Budget 2010-11

Union Budget 2010-11 has both positive and negative aspects for the real estate developers as well as the buyers. There is a revision in personal income tax slabs, which will strengthen the purchasing power of the buyers affecting the demand of the residential sector. The common man will also be benefited by the continued subsidy of one per cent for affordable housing loans, which will help this sector to grow. A one-time interim relief would be provided to the housing and real estate sector by allowing pending projects to be completed within a period of five years instead of four years for claiming a deduction on their profits.

On the other hand, a two per cent increase in excise duty of cement and steel might not prove profitable for the real estate developers as the cost of construction would be expensive which will ultimately result in the increased cost of the project and hence the buyers will be affected. Also, it would have been a great support to the real estate sector if Section 80I (B) would have been renewed to thrive the demand of affordable housing.

Union Budget 2010-11 is supportive for the tax payers as the extension of limit will help in reducing burden on individual tax payers. The budget tabled will induce renewed sense of optimism over the country's growth.

Focus Shifts to "The City of Destiny"

VISAKHAPATNAM the city of destiny

Visakhapatnam, the city of destiny, is the jewel on the eastern coast of India. The City is a harmonious blend of the magical past and the bustling present with a breath taking panorama of golden beaches, lush green fields, verdant valleys and splendid monuments from a historically rich and religious heritage.

Vizag attractions (Why Vizag)

Education
Visakhapatnam is also considered as one of the main centers of education in the state of Andhra Pradesh. It is the home of the renowned Andhra University, Andhra medical college. And many more esteemed educational institutions

Economy
The city's growth has mostly been due to its heavy industries. The Vizag Special Economic Zone plays a vital role in the industrial growth of the city.
Some of the major players

• HPCL – Oil Refinery (Hindustan Petroleum Corporation Limited)
• Visakhapatnam Steel Plant Rashtriya Ispat Nigam Limited (RINL)Vizag Steel Plant
• Hindustan Zinc Limited
• Bharat Heavy Plate and Vessels Ltd (BHPV).
• Hindustan Shipyard Limited
• Visakhapatnam Port Trust
• Coromandel Fertilizers
• National Thermal Power Corporation
• Rain Calcining Limited
• Essar Pelletization Plant and many more
• LG Polymers

Tourism
Vizag is Well known for beaches ,nearby scenic Araku Valley and Borra caves, the 11th-century Simhachalam temple and ancient Buddhist sites spread across the area. The city boasts a submarine museum, the first of its kind in Southeast Asia, at Rama Krishna Beach. the weather here also remains favorable throughout the year.

IT
Vizag is another corridor for IT in Andhra. Due to the economic importance and talent pool, IT companies that have already started venturing into the city. Satyam, TCS, Wipro and others like Symbiosis Technologies, Color Chips, have already acquired land in the city and there are many more companies in the fray and the growth of Vizag shows up that It could be the next IT hub in Andhra.
There has been a rise in the real estate prices,. Recently various software companies announced their plans for starting development centers in Vizag, which has also contributed to the rise in real estate prises. Inflows from NRIs from Vizag has further added to this rise.
Vizag is developing exponentially and so is the demand arising. Residential sector of real estate is experiencing a boom in Vizag. Residential property in Vizag is now in great demand after the latest Investment trends in Vizag. People have begun to realize the best investment in Vizag now lies in Real estate. There is a solid demand for residential property especially luxury and deluxe apartments in Vizag. Finding the ideal property in a city like Vizag could be a mind - boggling task, Budgets, Size, Location, Quality... There are so many considerations GK has both residential as well as commercial property to suit your needs & choice.
Designed to meet growing demand of premium lifestyle, GK brings you convenient and splendid choice of dwelling & homes with a host of heartwarming amenities at reasonable prices in Vizag. Maintaining a steady experience in the relevant field, this group is committed to deliver nothing less than top-notch quality and impeccable service. Building landmarks of committed service over strategic locations in and around Vizag. With a team of efficient and dedicated engineers, supervisors and other officials, GK is keeping its promise of delivering superior quality intact.
If you're considering moving and thinking of Quality, then your search ends here with GK Townships and structures. Choosing where to live is one of the most important decisions you make. So take a moment to review the special features we offer with each and every project. Compare us with your other options, side by side, and you will see that we are beyond comparison.