Real Estate Hyderabad India

Real Estate is such a hapenning area and especially since so much of talk in hyderabad and for NRI's from Hyderabad happens on this topic there is a substantial section devoted to posts on this topic.  When the market was hot it made many millionaires and also it made a billionaire a pauper i.e. Satyam's Raju.  You can like it or hate it but you cannot ignore real estate.  Atleast while talking about Hyderabad.

The selection of posts on the Real Estate are listed below - enjoy...

Must View:

• No Meaningful Correction in Hyderabad Real Estate Prices
  
• Hyderabad Real Estate Bubble Busts

• The Coming Bust in the Hyderabad Real Estate Bubble
  

Other Blog Posts on Real Estate:

• LIC Housing Finance Property Show - January '09
  
• Realty is a fragmented market. Local factors are the biggest influence
  

• Builders Selling Small Number of Super Luxury Apartments are Fringe Players Nationally!
• Tips for renting commercial real estate

LIC Housing Finance Property Show - January '09

LIC Housing Finance Property Show was conducted on Jan 3rd & 4th  at Institute of Engineers Khairtabad.  This exhibition was a waste of time since the prices were not adjusted to the market conditions. There were hardly any properties on offer in localities where people are looking for homes. 

Secondly, with the tightening of the credit norms by banks - it is difficult to get larger loans like earlier.   However, real estate companies have hardly any decent property options  to offer for the loan amount + savings that most people can arrange.   Thus, there is a big imbalance between buyers and sellers.

The good thing was unlike other shows, there was more variety and smaller firms were in good presence. Many of the big companies other than Aliens were conspicious by their absence.  There was a good crowd, the parking lot was congested and lot of middle class families visited the show.

There were several developers from Hafizpet and Nizampet area.   My contacts in that area tell me that there is hardly 5% booking in that area and builders are under huge strain.

Some developments were quoting  Rs.2,500 to Rs.3,200 about 25 kms away from Khairtabad. The prices were off course negotiable.  Even if  the proposed Hyderabad Metro was operational today as planned - the last stop for these developments would have been tens of kilometers away. In my opinion, these properties are not city locations though they may fall under GHMC limits. It will be very difficult and inconvenient to commute to a job in the city from these developments.

Within the city, one apartment in Srinagar colony was being quoted at 5,000/- per sft negotiable. The size available was about 2600 sft for a flat. At that price the cost of the flat was coming to around 1.3 crore. Based on some rough calculations, this person or family should have a income of Rs.30 lakhs per year and put down some 25 lakhs down payment.  You can guess how many can really afford this apartment.  

With the builders still quoting exhorbitant rates,  only a small number of  purchase transactions are possible in Hyderabad real estate market today.  Since most real estate companies are looking to get the maximum value from their properties, it appears to me that most of these real estate companies will be exiting this industry and "venturing" into other areas. If someone was really into this business for the long-term they would plan and operate in a different manner.

Road conditions deteriorate badly in Hyderabad

Want to develop a spondilitis condition?

Then drive through this stretch - JNTU to Chandanagar on the Mumbai National Highway.  It is not a road, it is a test track build for thoroughly evaluating the Land Rover All terrain and Multi Purpose vehicles before a crazy African Jungle expedition. 

Overall, the quality of roads in Hyderabad has deteriorated very badly.  In my opinion, from around early 90’s to a few years back Hyderabad had the best roads for a city in India.  Now it is going back to the horrible 80’s. Though I was a small kid I could not help but notice that  every time Indira Gandhi or Rajiv Gandhi visited Hyderabad, the roads they traveled on would be recarpeted (even if it was the third time that year).  While the rest of the roads continued to be neglected and badly potholed.  

In the last 3-4 months, some roads are being re-laid (maybe because the elections are getting closer). However, this is very adhoc and not need based.  Roads in Hyderabad seem to be classified into 2 kinds - VIP roads for the 'masters' and I guess the rest are for the ‘slaves’.  The slaves have to travel on the badly potholed roads for committing the crime of paying taxes to fill in the coffers of the government run by the VIPs. 

This can be best seen in Panjagutta.  The road from Begumpet to Road No. 1 and 3 Banjara Hills is well carpetted.  The Raj Bhavan road is also very good. However, Panjagutta to Saradhi Studios is badly potholed. I have been watching the steady deterioration of this road for the past 2 years.

The “prized jewel”  (worst patch of road) of GHMC is a small stretch of road underneath the flyover at Panjagutta X Roads.  Since the Kukatpally-  Dilsuknagar is the lifeline road of the city through which about 10 lakh people travel everyday.  There must be some very “intelligent” reason known only to the city administrators for not properly maintaining this road (a full  six months after the flyover is completed). 

If this trend continues it will not be surprise if it  takes 4 hours to travel from Panjagutta to Shamshabad airport.  As I painfully went through 2 kms of obstacle race on the JNTU to Chandanagar road,  I could not help but thinking. GHMC is not able to maintain the current roads in the city.   How will they  manage once the city fully expands into Greater Hyderabad! Think about that!