Less Vacant Commercial Property in Hyderabad Than in Other Large Cities

As thousands throng to live in property in Hyderabad and to earn a living in the IT city, the lack of high quality commercial space will lead higher leasing values for companies that hope to have a presence in Hyderabad.

A Rising Demand For Commercial Space

The lack of sufficient high quality commercial space at a time when some of the biggest global companies are in a beeline to open offices in Hyderabad is not great news for the concerned authorities. Top Builders in Hyderabad with the initiative could profit from this situation either by building the required high quality commercial space or by charging more for existing spaces they own.

It is already well known that the demand for new commercial property in Hyderabad exceeds the demand for such property in Mumbai. Vacant office space in Hyderabad is less freely available than such space is in cities such as Delhi, Chennai, Mumbai, and Kolkata. This leads one to the conclusion that the demand and supply of office space in Hyderabad is better matched than demand for office space is in most other large Indian cities.

The Most In Demand Regions

In prime regions of Hyderabad such as Hi-Tech city, vacancy levels are no lower than 5 to 5½ percent. This indicates that whereas regions of India such as Gurgaon and Mumbai have produced large swaths of commercial space that has few takers, commercial property in Hyderabad has a better and more balanced approach that more closely matches supply with demand.  Leasing values in regions such as Hi-Tech city have risen from 48 rupees per square foot as they had been a year ago to 60 rupees per square foot today indicating an upsurge in demand for commercial property in Hyderabad.

What the Future Holds

Leasing space is not likely to be aplenty until next year when several new projects in Hyderabad are expected to be complete. Much of the space in the upcoming projects in Hyderabad has already been pre-leased and will likely lead to higher rental values once the upcoming projects are completed and leased out.

Conclusion

Whether by luck or planning, builders in Hyderabad have the amount of leasing space in Hyderabad not too far in excess of demand for such property in Hyderabad.

Post By : Shrikant Sain

For more: propchill.com

Contact number: 7827456456

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Stricter Registration Norms for Projects in Hyderabad

The presence of a large number of illegal projects in Hyderabad has led the Telangana government to ask builders in Hyderabad to provide a building plan as well as gain an approval of a projects layout plan before a property is registered.

The Intended Goal

Due to the prevalence of unapproved and illegal developments and to prevent land encroachment in Hyderabad, the government of Telangana has approved a strict registration plan for projects in Hyderabad. With an intend to enforce builders in Hyderabad to conform with norms agreed upon between the builders and the Telangana government, the goal is to stamp out illegal developments, put a stop to land encroachment, and create developments which are safer for residents.  

Implementing the Plan

Builders in Hyderabad will going forth be required to obtain a building and layout plan permission before registering a property. The revenue department responsible for registration will be working alongside the Municipal Administration and Urban Development to monitor builders who appear to register projects.

The Story In the Past

Until the new decision by the Municipal Administration, the registration department never sought the documents relevant to the building plans of Real estate in Hyderabad, their sanctioned layout, or the details stating whether the land had been approved for construction by the civic body.

The Emerging Changes

The actions by the Telangana Government have now mandated that all builders in Hyderabad henceforth submit copies of their projects layout, provide the layout of buildings on the projects, and provide the building permission received from the civic body, in order to have the property registered.

Illegal Structures Already Standing

Understandably builders in Hyderabad who have illegal structures already standing are feeling the pressure. The Government of Telangana however has not announced its intention regarding illegal structure that are already standing and are occupied. Residents who live in illegally built flats in Hyderabad may not feel the impact of the decision by the Government of Telangana. New projects in Hyderabad will receive scrutiny from the government going forth.

Changes Already On the Way

The demolition of existing illegal commercial projects has already begun in regions such as the old areas of Hyderabad and in important commercial markets.

Small Builders Under Pressure

Most of the illegal construction have been untaken and built by small-scale builders who are now feeling the heat. Many of the top builders in Hyderabad are welcoming the change, as they believe that it will lead to a regularization of their industry and also benefit the environment. The top builders in Hyderabad have agreed to comply with the newly set norms.

Prime investment destinations in Hyderabad

Showing resilience to the Central Government demonetization drive, the Luxury flats in Hyderabad market has continued to move vertically in 2016. Influenced by the IT sector, proposed infrastructure projects, seamless connectivity and affordability the small markets in fringes of the Hyderabad city emerged as the top investment destinations and hub for capital appreciation at the tune of 4% and 8%.

There are several areas across the across the city which has developed on the back of-

·        enhanced living standard ,

·        business-friendly policies ,

·        a stable political environment,

·        robust  infrastructure projects and,

·        An appealing cosmopolitan ideology.

Here we have a created a list of localities in North western Hyderabad that have strongly evolved as the nerve center of Residential projects estate in Hyderabad-

·      Pragathi Nagar- Pragathi Nagar is the situated at the western outskirt of Hyderabad and has emerged as the one –stop solution for those seeking for residential options between Rs 25- 30 lakhs . The areas have a sufficient supply of 2 BHK and 3 BHK units which are sized between 1000 and 1500 sq ft with ticket size of Rs. 2400-2500 per sq ft.

The prime factors which are helping this area to develop further are easy access to the IT HUB and excellent road connectivity.

·      Kukat pally- The areas like Gachibowli and Hi-Tech city have lost their sheen as the hub for low cost housing destination. This has created an opportunity for Kukat pally to transform into a new cynosure for prospective end-users and investors. This area is offering multiple housing options at a very affordable price of Rs. 3900 sq. ft and because of this unique price the locality has become immensely popular with the mid –income group. The investors are also attracted to this area as there is a capital hike of 8%, YOY. The elements which are encouraging the growth of this area is are affordability, closeness to the IT hub and the upcoming metro rail project.

The Hyderabad real estate has grown leap and bound in past few years and it expected that it will perform much better as compared to other real estate markets in India. The demonetization policy has affected the overall economy and especially the real estate market.  However, we can easily conclude that Hyderabad has definitely done better than other markets. So, Hyderabad will surely attract the new home-buyers and investors towards it!

A Pivot Towards Property in Hyderabad Led by Multinationals

If reports are to be believed property in Hyderabad over the past quarter has benefited from more than one factor. Experts believe that measures taken by the government has benefited the cities real estate sector. Additionally the GHMC has benefited from a corpus of 150 crore given to it by property tax payers in old currency denominated notes. It is expected that this money will be put to good use in municipal infrastructure projects in Hyderabad.

Reasons to Cheer

Real estate pundits in Hyderabad foresee that Hyderabad will become the single largest market for commercial real estate in India by the end of next year. The belief that commercial real estate will be at price points that make it attractive to companies underlies such sentiment.

If large companies do open offices in Hyderabad in large numbers then it would in turn lead to greater demand for Luxury property in Hyderabad as well. Already some of the biggest names in technology have opted to open large office centers in Hyderabad, snubbing Bangalore. If more companies begin to shift base to Hyderabad then greater employment opportunities at Hyderabad will lead to a larger number of people to purchase residential real estate in Hyderabad.

The Localities In for Good Times

If the soothsayers and pundits have it right, localities such as Hi-Tech City, Gachibowli, and Raidurg will witness an increase in the value of their real estate. The information technology workforce is typically composed of the most well paid segment of employees in any Indian industry. The number of employees in this niche segment employed in Hyderabad is expected to grow by forty thousand employees by the end of next year and will add significant capital into the cities economy and in real estate in Hyderabad.

The Loins Share of Real Estate Property

In Bangalore, two localities Gachibowli and Manikonda, together account for more than sixty percent of the demand for Top builders in hyderabad. The main reasons for the great demand for property in Hyderabad at these localities is due to their proximity to employment centers and because they have a sound infrastructure. In the future the quality of infrastructure in these localities is expected to improve and possibly lead to greater demand for new apartments in Hyderabad, by renters and by owners, at these regions.