Multi-Crore Property Deal Comes Hyderabad's Way

[athletics]

Multi-crore property deal comes Hyderabad's way

HYDERABAD: Breaking the realty jinx facing Hyderabad for over half a decade, a joint venture project approximately worth a whopping Rs 400-500 crore has made its way into the 'hi-tech' city. Market sources say the project, touted as one of the biggest such ventures of the decade, will be executed by Canada-based real estate major Brookfield Property Group (the most profitable platform of Brookfield Assets Management Inc) in partnership with the reputable Hyderabad firm Incor. It's expected to go on the floors later this year.

Here's the fine print: The project is to be spread over a sprawling area of about 11.45 acres in a prime location - Kukatpally. The mixed use development project will comprise 2 million square feet of residential space along with 4 lakh square feet of retail area. According to market sources, the venture is aimed at attracting both investors and genuine home buyers to the city that's been reeling under a severe slowdown for many years now.

While Sandip Patnaik, managing director, Jones Lang LaSalle (JLL-Hyderabad) - the global real estate consultant firm which transacted the deal - confirmed the news, he refrained from divulging details about the project. "We are bound by a client confidentiality clause and we need to respect that," Patnaik said.

He, however, welcomed the development and insisted that it would help boost the Hyderabad realty sector. "Deals like these infuse positivity into the local realty market that has been suffering since 2008. Also, the very fact that Canada has shown faith in a local partner goes on to establish that foreign firms are once again viewing Hyderabad as a potential market for growth. That is good news," he said.

Incor, founded by P Surya Reddy and G Anand Reddy (known for their PBEL project), operates across Hyderabad, Chennai and Bangalore. Till date, it has delivered 1.5 million square feet of space and has another 2.5 million square feet under construction.

"It is indeed heartening news. Hyderabad always had the required infrastructure to support such large projects. Now, with the sentiments improving post bifurcation, these ventures are taking shape. I am confident of more such big ticket ventures pouring into the city soon," said C Sekhar Reddy, former president of Confederation of Real Estate Developers Association of India (CREDAI), while complimenting the new government of Telangana for this success.

"When basic issues such as power and water are paid attention to, the mood among people automatically starts to look up. And that's what the new regime has managed to achieve. Even industrialists who weren't very confident of the government initially have now changed their opinion. Now, everybody wants a footprint in Hyderabad's affordable market," Reddy elaborated.

Perhaps that explains why, industry sources claim, at least three multi-national companies are eyeing massive commercial spaces - upwards of one million square feet - in the city at present. "In fact, 10,000 to 50,000 square feet deals have become routine now. There are so many takers for such spaces. To add to that, if the big ones materialize, it will do Hyderabad a lot of good," said a market observer.

[Kickuu]

HYD ni endhuku vastadhi Bhayya .

[dappusubhani]

HYD ni endhuku vastadhi Bhayya

adhanthe le ..

[Kickuu]

adhanthe le ..

Ravoddhe...

[dappusubhani]

Ravoddhe...

Mundu nee id raavaali bye1 aa tarvate edaina

[athletics]

The increase in office space absorption during the last three quarters in Hyderabad is expected to generate higher demand for residential units in the next six months, according to market observers.

The upsurge in the office space activity was able to keep the housing sector recovery hopes alive despite the disappointment associated with the delay in the launch of the Metro Rail early this year, they said.
Advertisement

With an 84 per cent growth in net office space absorption for the January-September period in the last calendar year, Hyderabad has joined the fastest-growing markets in the country in office leasing by adding 3.87 million sft, according to a report from global real estate consultant firm Cushman & Wakefield. The average deal size here increased 28 per cent to 18,400 sft, the report stated.

The increased activity has resulted in a sharp rise in office rentals from Rs 40-41 per sft seen a year ago to Rs 47 now. Tracking this, vacancy levels have dropped to the lowest 4-5 per cent currently across all prime locations, said real estate consultant JLL.

“We would not be surprised if the rentals touch Rs 50 per sft soon,” said Sandeep Patnaik, managing director of JLL, here. With so much of activity, the most-preferred financial district has become very congested now, he added. While other metros in south like Chennai and Bengaluru have multiple corridors allowing corporate houses to expand, Hyderabad has very few options in this regard.

According to him, the market here would gather more steam as three IT & ITeS companies were in advanced stages of discussions to float a request to clinch a large chunk of space in the coming months. It must be noted that e-tailer Amazon has recently closed a deal for acquiring 300,000 sft of space near Shamshabad. Other major player Flipkart, too, has gone in for around 250,000 sft for its back-end operations at Medchal near here, while Swedish retailer Ikea has announced an investment of Rs 500 crore in Hyderabad.

In its report, Cushman said office rentals values in the suburban Gachibowli market may appreciate marginally during the April-June quarter, as the upcoming supply is likely to be introduced at higher rentals. Limited availability of quality office spaces in Madhapur may also push up demand in Gachibowli, it added.

Considering all of this, the technicals for residential market are looking very bright and would be in a “sweet spot” in the next two to three quarters, they said.

While residential property prices have remained stable in the last two years, developers could raise them in the near future.

Speaking to Business Standard, Jayashree Kurup, head of content and research at real estate portal MagicBricks, said buyers here were looking for a further drop in interest rates to hit the market, and added “buying sentiments are not down”. In their research on consumer sentiment, it was observed that users here did not say they would not buy property. Magic Bricks expects residential prices to rise after Dussehra this year.

“For the first time, we are noticing interest from private equity players in the city housing market. With considerable development activity taking place in Madhapur and Gachibowli, we expect housing prices to rise in the next five to six months,” said Veera Babu, office head Hyderabad, Cushman & Wakefield.

According to data compiled by Cushman for the first three months this year, housing sector capital values have remained stable. It had noticed a 3-6 per cent price appreciation in the prime Banjara Hills and Jubilee Hills locations, when compared with the corresponding period last year. The average price per sft in these two locations stood at Rs 7,000-10,000 during the period. Developers launched around 3,300 new units during the aforesaid period and a majority was in Gachibowli, Madhapur, Sainikpuri, Miyapur and Kompally.

City developers are yet to witness the pre-2008 record boom for housing units. According to sources in the real estate market, housing developers here are finding it difficult to cope with the high cost of financing, and are not considering hiking rates in the near term.

[Kickuu]

Mundu nee id raavaali bye1 aa tarvate edaina

Adhi Perm Citizen of Assam.. nenu vesindhi edho TP ki ma..

[dappusubhani]

Adhi Perm Citizen of Assam.. nenu vesindhi edho TP ki ma..

I know you are assaammed ani

[donganaaK]

bokka .... kkply lo friends kattina residential properties most of them are vacant now , no buyers are coming forward at this point , residential property vishayam lo kkply is fckedd .... commercial property development may workout ....

[athletics]

bokka .... kkply lo friends kattina residential properties most of them are vacant now , no buyers are coming forward at this point , residential property vishayam lo kkply is fckedd .... commercial property development may workout ....

The 2nd article I posted Mostly concur with your statement, residential is bit shaky for a varietyof factors especially people are waiting to see if the property rates drop or unsure to invest but the commercial space is a hot space as a lot companies are either moving in or expanding reason being the lease rates being cheapest in the country with best infrastructure available. My belief is that as more companies form a base here and will drive the residential market forward.

[dappusubhani]

bokka .... kkply lo friends kattina residential properties most of them are vacant now , no buyers are coming forward at this point , residential property vishayam lo kkply is fckedd .... commercial property development may workout ....

 

lol.1q lol.1q