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An Inside Story: The Flourishing Hyderabad Real Estate Market

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[ source : Realtyplusmag.com ]

By Mr. Hari Challa, Managing Director, Aliens Group

As the gloomy clouds on Real Estate Market clearing, a new sun is bringing light into the changed scenario. Hyderabad, the capital city of Telangana state and a prominent IT city of India is experiencing a hike in the realty market. Even the storms of RERA, GST, and demonetization couldn’t break the lead and Hyderabad is among those few cities of India which were least impacted by the major economical and national real estate policy changes. The de jure capital of erstwhile Andhra Pradesh has gained more investors in the real estate market since bifurcation of the state and emergence of Telangana.

The Bloom in the Gloom – Story of Hyderabad’s Realty Market

The real estate market of Hyderabad has seen an uprise in this financial year in comparison with the past 5 years’ growth as per several reports. One of the largest urban agglomerations in India, Hyderabad has attracted property investors continually because of government’s focus on the development of infrastructure and Telangana’s efforts to bring up its new capital as the IT metropolitan of India. The political stability added to the factor and investors are considering Hyderabad as the only major city that can give good returns on investment. Moreover, development of areas like Gachibowli as IT, Education, Financial & Cultural hub has made Hyderabad a prime choice.

The Real Estate (Regulation and Development) Act of 2016 shackled the Realty Market and prices of properties dropped down across the nation. In such a recessive period, only a few places survived and thrived, Hyderabad is one of such urban cities. For last two decades, the city has expanded the base for service sector primarily including information technology (IT), IT-enabled services (ITES), insurance and financial institutions, and further boosted Real Estate market. The commercial markets and the subdivisions of the ‘city of pearls’ along with The Greater Hyderabad Municipal Corporation (GHMC) have led to the overall blossoming of the Real Estate Market. The current market is taking positive turns and there is a noticeable spike in the market valuation of properties across areas like Shamshabad, Keesara, Ghatkesar, Gundlapo-cchampally, Bongluru, Shamirpet, Kokapet, PeddaAmberpet, Patancheru, Adibatla, Tukkuguda and Medchal, Tellapur-Nagulapally for their development as IT, medical, finance, and media hubs.

The Offerings of Real Estate in Hyderabad

The Mega City in making has a lot more to offer than just being an urban agglomeration. As far as both commercial and residential areas are considered constructions with maximum glass usage giving a 360 degree view with abundant sunlight, maximum energy efficiency, green buildings equipped with renewable energy plants and 24/7 water and electricity facilities rated and certified by Indian Green Building Council (IGBC) and government authorities are the major offerings of Hyderabad’s Real Estate builders. The city has become a major attraction for the millennial workforce that accounts for most of the skilled employees in MNCs and major industry players in India. The infrastructure is one of the main reasons that Hyderabad is raising high in the sky of development as a prime destination for companies to establish their offices. Flat Enhancement Solutions provided by the builders related to Interior designing, glasses & windows and paints are also making things easier for investors in the market. The new townships, multistory buildings, and housing societies are coming with features of clubhouses, pools, sauna, and spa as well. On one hand, Sky gardens, Pocket gardens, Joggers Park, other green zones promote healthy living,  the spacious flats, and houses with home automation & IoT features, private corridors, elevators, parking, and commuting features give a promising touch of luxury and advanced tech on the other hand.

Rising and Shining Hyderabad’s Realty Market

The rapid urbanization has led to a high demand for properties in the real estate market of Hyderabad which is going to increase in the coming days. A number of reports and research have shown that the projects and properties in Hyderabad and the surrounding suburbs are witnessing greater demands from investors, homebuyers, and companies. The political and economic stability in Hyderabad, one of the seven major cities of India is bringing a great amalgamation of culture and modern advancements for people looking forward to investing in the properties there. The Hyderabad property market will see an overdrive in the future as well.

 

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THE GROWTH OF HYDERABAD’S REALTY MARKET

The growth of Hyderabad’s realty market

By Hari Challa,Managing Director,Aliens Group

[ source : 99acres ]

Hyderabad is now home to some of the largest organizations in India which includes defense, pharmaceutical, educational and IT organizations. In fact, Hyderabad has established itself as one of the biggest IT hub in the country. With a world class infrastructure which consist International airport & metro connectivity, the city has been successful in attracting the multinational workforce. This has led to the rise in the demand of office spaces and residential units subsequently.

  Hari Challa, Managing Director, Aliens Group

Hari Challa, Managing Director, Aliens Group

  • Gachibowli has witnessed astounding transformation & development in the terms of real estate activity. It is a market comprising of a 15 Km stretch from Nallagandla-Tellapur to Manikonda. It is located just 6 Kms away from the Hi-Tech city. It has emerged as a popular IT, banking & financial services hub as companies like IBM, Microsoft, Infosys, UBS, Franklin are present here. Moreover, with the presence of top institutes like ISB, IIIT and NITH it also has been emerging as an educational & cultural hub.

  • Due to the increased demand many builders are now developing the residential spaces using new technologies, providing all the modern amenities which are not available even in the most developed cities of the country yet.

  • With the ample availability of space developers are building spacious flats with home automation & IOT features.

  • IGBCs (Green Buildings) are being constructed which consumes less energy, water and natural resources, creates less waste & are healthier for living.

  • Constructions are being done with the maximum glass usage which gives 360 degree view & abundant sunlight.

  • Builders are providing the flat enhancement solutions with the best interiors.

  • With the club house features, there are private corridors, pools, sauna & spas and elevators.

  • Lot of space has been allocated to the parks, pocket gardens and sky gardens.

  • Roads are broad and there is a lot of space for the parking inside and outside the projects to avoid any sort of vehicle congestion.

  • There are lakes and lot of greenery in the area which makes it ideal for the living.

 

How Real Estate Sector could give a major comeback in Indian Realty market?

For the last few years, the residential real estate market has seen a downfall in the demand, due to which the number of unsolved inventory has increased over the time. The imbalance between supply and demand in term of the price has led to rise in unsold inventory levels. This has eventually led to the correction of prices in the market.

With the introduction of The Real Estate (Regulatory & Development Act), 2016, The Real Estate Regulatory Authority (RERA) set under the law, addresses issues related to the real estate market. This has led to the fairness and transparency to the process and encouraging the ultimate buyers to invest their money being more assured.

The economy is also doing well and the GDP is also growing steadily. The current scenario is improving for the real estate. Since the job creation and commercials are growing, the demand for residential estate is increasing. So, with the rise in income of buyer and lower price in the realty market, The real estate sector is making a comeback.

 

2018: The best time to invest in the Real Estate Market:       

The implementation of RERA &GST has taken the Real Estate Sector in a right direction. Clearly it is a buyer’s market right now but not for long. 2018 is the best time is the best time to invest in the Real Estate. At present, Developers are focused on completing their ongoing projects instead of launching new projects. This means the demand and supply will meet somewhere at the equilibrium soon and prices will go up there after. So, Prices being at the lowest this is the high time to invest in the real estate market.

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#ExpertsOnRERA: Naveen Mypala, Director, Aliens Group

The Real Estate (Regulation and Development) Act is finally being implemented. What are your views regarding the same

By Naveen Mypala, Director, Aliens Group

[ source : 99acres ]

The year 2017 is on a good path for homebuyers and after the implementation of the RERA Act, there will be more transparency in the realty market. The RERA Act will push developers to sign agreement with buyers and can claim other initiatives which are RERA compliant. RERA will also protect the interest of homebuyers and ensure timely delivery of projects

How developer-friendly is RERA? Do you think it has turned out to be a win-win bill for both buyers and developers

  Naveen Mypala, Director, Aliens Group

Naveen Mypala, Director, Aliens Group

RERA is more lopsided towards homebuyers as compared to the developers. Under the Act, developers are now first trying to complete their existing projects rather than focusing on new launches. Moreover, developers will now have to work on proper deadlines and other initiatives, which is a positive start as it will strengthen the bridge of trust between developers and buyers. 

Will realty demand revive post RERA implementation?

Considering the present scenario, the upcoming few months are likely be a gestation period in the real estate market and the second half of 2017 will see the positive results triggered by the implementation of RERA. The transparency induced by the Act will help buyers to choose the best suitable home which will drive sales. 

 Were there any new launches you were holding back in anticipation of RERA? Do you plan to go ahead with the launches immediately post the implementation?

No. We are currently focusing on completing the ongoing project, for which we have already taken a funding worth Rs 200 crore and have signed a contract with our vendor for Rs 580 crore.

Is RERA going to impact property rates in your city/cities?

Hyderabad has recently seen some shift in pricing so it will have a minimum impact on the prices. However, the compliance will be the key to this sector where timely delivery will become the USP and developers may use it to take a leverage for playing around with prices.

What is the road ahead? What is it that still needs to be done in order to hit the target that RERA was conceptualized for?

The road ahead will be difficult for the initial few months, however, the whole atmosphere will settle down. The impact may be seen for a few years but road is much brighter post 2020, which may see lesser complaints and troubles for buyers.

The fluctuation in prices for the raw materials need to be stabilised as they pose as a roadblock in procuring materials. Raw material vendors, too, should brought under some compliance. A sudden hike, midway of a project, is the biggest deterrent for timely delivery as negotiations or change in vendor for large scale projects consume critical amount of time

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Aliens Group awards Rs 580 crore contract to NCCCL

Aliens Group awards Rs 580 crore contract to NCCCL

Aliens Group awards Rs 580 crore contract to NCCCL

The company has recently raised Rs 200 crore from Edelweiss to fasten the delivery process of the residential units within the project

BENGALURUAliens Group a renowned name in Hyderabad’s real estate market has recently finalised a Rs 580 crore contract with Mumbai based New Consolidated Construction (NCCCL). The contract is to ensure the timely delivery of project as communicated to the clients.

Aliens Group iconic project Space Station has been given a boost by incorporating vendors from outside to complete the project on time to ensure the timely delivery. The developers have recently handed over 120 flats to its owners and would like to handover remaining flats in two phases. The company has also successfully shifted 100 buyers to phase one flats within the project, and in the process of sifting more owners with no extra cost.

The company has recently raised Rs 200 crore from Edelweiss to fasten the delivery process of the residential units within the project.

Hari Challa, MD, Aliens Group said, “This is a big step towards our commitments to the buyers who have invested with us. The company will be providing upgraded flats to our buyers which will be Rs. 800-1000 sq. ft. cheaper than the whole market in the present market scenario..”

Mahesh M, MD & CEO, NCCCL said, “ It's a great opportunity to create benchmark in Hyderabad’s market, we are also committed to the high standards we have set for our work and will ensure that we deliver quality work on time.”

“Our company has also settled dispute with many of our previous buyers and have so far paid Rs.10 cr. to multiple buyers in last few months. We are also compensating our existing 1200+ customers for the past delay by giving them free enhancement, upgraded fitments and moving forward with positive mindset. The current market trend and new infrastructure developments around tellapur also suggests in favor of this move and new queries for property purchase have increase by manifolds for our luxury apartments.” added Naveen Mypala, Executive Director, Aliens group.