There was a time when Hyderabad was known for its real estate market and was known as the property hub. But all that became farce with the big crash in the market and the arrival of recession. However, the consequences of that are still being borne by the builders and realtors.
Sources say that deluxe flats are now available for Rs 2000 –Rs 2300 per sft and this is in areas such as Shameerpet, Shamshabad etc. It is also heard that on proper bargaining, the prices will come down further. The situation is no better even in few key areas of the city.
So far, even the experts are not in a position to predict when things will change since not many transactions are happening. On the other hand, with the banking and financial institutions amending their rules to a stringent level, tough times are lying ahead for the property segment.
Real estate news, hyderabad Live News, hyderaba properties,
Showing posts with label hyderaba properties. Show all posts
Showing posts with label hyderaba properties. Show all posts
Sunday, April 25, 2010
Saturday, February 20, 2010
To-let signs hit realty spirit
Downed shutters and To-Let boards plastered on commercial spaces in prime business areas across the city has left the business community worried. Just when the ill-effects of recession were wearing off, the Telangana-Andhra tussle has dealt a body blow to the real estate sector.
An alarming 30 per cent showrooms have shut down over the past couple of months. The city has begun to resemble a ghost town with big establishments downing shutters as they have been the worst hit. rents of commercial plots have plummeted, and some have sold property in distress sales for meagre sums. Yet, Hyderabad’s business community is thinking twice before investing in new ventures. They prefer to relinquish properties in prominent locations in favour of land that is more reasonable.
Vishwanath K., a member of IFRA and proprietor of Corporate Real Estate, says, despite prices falling by almost 50 per cent there are no takers for large plots. “Now rents in commercial areas have fallen from Rs 120 to Rs 40 per sq feet, but there are hardly any takers.”
He says the tussle over Telangana is to blame along with recession. “While real estate prices in Bangalore, Mumbai and Chennai are finally looking up, the T-tussle has come as an added blow to the city. People are thinking twice about investing in something new. Moreover, nearly three international companies have backed out from setting up shop here,” he points out.
B. Nagarjuna, proprietor of Home Guides that specialises in private and commercial realty, says there is a perceptible change in the market. “The Telangana struggle has indeed spelt bad news for real estate as far as commercial plots are concerned. Bigger establishments in areas like Banjara Hills and Jubilee Hills have suddenly taken a hit with rents becoming too expensive as compared to the footfalls. In fact, many prefer to shift base to other parts of town,” he says.
Smaller establishments are still able to survive and he finds most To-let boards hanging on plots of 5,000 sq feet and above. “Bigger plots have been abandoned. The trend is now towards smaller outlets,” he says.
hyderabad real estate, hyderaba properties, properties in hyderabad,
An alarming 30 per cent showrooms have shut down over the past couple of months. The city has begun to resemble a ghost town with big establishments downing shutters as they have been the worst hit. rents of commercial plots have plummeted, and some have sold property in distress sales for meagre sums. Yet, Hyderabad’s business community is thinking twice before investing in new ventures. They prefer to relinquish properties in prominent locations in favour of land that is more reasonable.
Vishwanath K., a member of IFRA and proprietor of Corporate Real Estate, says, despite prices falling by almost 50 per cent there are no takers for large plots. “Now rents in commercial areas have fallen from Rs 120 to Rs 40 per sq feet, but there are hardly any takers.”
He says the tussle over Telangana is to blame along with recession. “While real estate prices in Bangalore, Mumbai and Chennai are finally looking up, the T-tussle has come as an added blow to the city. People are thinking twice about investing in something new. Moreover, nearly three international companies have backed out from setting up shop here,” he points out.
B. Nagarjuna, proprietor of Home Guides that specialises in private and commercial realty, says there is a perceptible change in the market. “The Telangana struggle has indeed spelt bad news for real estate as far as commercial plots are concerned. Bigger establishments in areas like Banjara Hills and Jubilee Hills have suddenly taken a hit with rents becoming too expensive as compared to the footfalls. In fact, many prefer to shift base to other parts of town,” he says.
Smaller establishments are still able to survive and he finds most To-let boards hanging on plots of 5,000 sq feet and above. “Bigger plots have been abandoned. The trend is now towards smaller outlets,” he says.
hyderabad real estate, hyderaba properties, properties in hyderabad,
Saturday, February 6, 2010
Fear, anger grip kin of building collapse victims
The debris of the four-storey building at Narayanguda.
They were hoping that she would bring some snacks for them, as she does daily.
They understood something has gone wrong when their father hurriedly came home around 3 p.m. and took them to the site where a building under construction collapsed in Narayanguda.
The children did not understand what was happening when their father suddenly started crying after speaking to the police.
Yadamma was among the 11 victims who died in the building collapse. “There are so many people here. Why cannot they get back my mother to me,” Sravan asked innocently even as other relatives told him that his mother was no more. Locals and the police participating in rescue operations were moved by the child’s innocent question.
Heart rending scenes were witnessed as relatives of the victims arrived at the building collapse site and broke down on seeing the broken concrete blocks lying one on the other. “We never harmed anyone and came here to eke out livelihood. Why should God do this to us and who is responsible,” cried Yadamma’s relatives, all labourers from an interior village of Medak district.
Some of them were angry as the police did not allow them to go close to the site. “My sister Nirmala came to work here. While we’re tensed up, the police are adding to our anxiety with contradictory answers,” Yadagiri of Nehrunagar in Baghlingampally said.
He complained that while some police officials asked them to go to Gandhi hospital to identify the victims, others directed them to check up at Osmania hospital. Among the 12 victims, five were identified as Sujatha, 40, Hanmanthu, 40, Jagdish, 45, Sailoo, 30, and Yadamma, 25. One body was sent to Gandhi hospital but was later shifted to Osmania morgue where the other bodies were kept for autopsy.
Tuesday, January 19, 2010
Real Estate: Hyderabad Discounts Upto Rs 9 Lakhs!!!
Well, all those glory days of overhyping the land prices and earning crores is history. The ground reality today is that selling a flat even at half the price has become quite a challenge. This is not just for mid size realtors but also for big corporates who are stuttering badly in Hyderabad.
Reports say that giants like Aparna Constructions and others are coming up with offers wherein ready to occupy flats are being sold at a whopping discount of Rs 8- Rs 9 lakhs. This would mean that a two bedroom flat which was costing around Rs 35 lakhs is now available at Rs 26 lakhs.
The prices have been falling sharply and with the Telangana issue still burning, the market looks grim for the builders. It is heard that flats in Kompally that were priced at Rs 2100 per sft are now being sold at Rs 963 per sft so you can figure out the math now. A report says that about 18% of projects are ready to be possessed.
hyderabad city, hyderaba properties, properties in hyderabad,
Reports say that giants like Aparna Constructions and others are coming up with offers wherein ready to occupy flats are being sold at a whopping discount of Rs 8- Rs 9 lakhs. This would mean that a two bedroom flat which was costing around Rs 35 lakhs is now available at Rs 26 lakhs.
The prices have been falling sharply and with the Telangana issue still burning, the market looks grim for the builders. It is heard that flats in Kompally that were priced at Rs 2100 per sft are now being sold at Rs 963 per sft so you can figure out the math now. A report says that about 18% of projects are ready to be possessed.
hyderabad city, hyderaba properties, properties in hyderabad,
Monday, January 4, 2010
Property prices slump in 'Cyberabad'
"BEST BARGAIN: Plots measuring 200 square yards each and worth Rs 6 lakh at Shamshabad airport area are up for sale for Rs 4 lakh only. Contact Ms Nandya, Best Avenues,” reads an SMS doing the rounds in Hyderabad.
The text message reflects the grim real estate scenario in and around the cyber city. The ongoing agitation for a separate state of Telangana has crippled the sector, already hit hard in the past one year because of the global meltdown.
And since the Telangana agitation gained momentum in the last week of November, real estate transactions have come to a grinding halt in the state capital.
Builders who have completed their ventures are even ready to sell property for low profits, but buyers are preferring to wait, hoping the prices will further plummet.
“ Already, there is a drop of 20- 25 per cent in the price of flats in the last few weeks. The average cost of a flat which was around Rs 3,300 per sq ft in a fast- growing area such as Dilsukhnagar and Kukatpally has come down to Rs 2,500. Still, the buyers are waiting for the prices to fall further,” K. Vishnuvardhan Sarma of Vaishnavi Builders, which targets middle- class buyers, said.
C. Shekhar Reddy, president of AP Builders’ Forum, said the recession- hit sector had already been stagnating, as a result of which the prices already crashed.
Many real estate ventures launched in high- profile areas such as Gachibowli, Gopannapalli, Manikonda, Vattinagulapalli and Tellapur before the meltdown are either still under construction or failed to take off because of the lack of prospective buyers — mostly software professionals and entrepreneurs.
“ We had paid huge amounts as advance to landowners from whom we took the plots for building residential complexes.
But we had to stop construction midway because of the recession.
At a time when the real estate sector started showing the signs of recovery, the Telangana agitation has come as a bolt from the blue. All our activities have come to a standstill again,” a real estate developer in the Gopannapalli area said.
P. Nagaraju, chairman of the PNR group of constructions, said there were no buyers even if the builders offered the flats at low prices. “ Worse still, those who booked some of the flats are now pressuring us to return the advance amount. They are prepared to forfeit a lakh or two, but want to cancel their bookings, fearing that the property values will come down drastically in future,” Nagaraju, one of the top 10 real estate dealers in Hyderabad, said.
“ The sooner the Telangana issue is resolved, the better. We don’t mind the formation of a separate state. At least then, the real estate activity will pick up,” he said.
Interestingly, the property prices have started shooting up in the Vijayawada- Guntur area because of speculation that the belt will be made the capital of Andhra in the event of the formation of a separate Telangana.
According to reports, real estate prices in Vijayawada have gone up by 15- 20 per cent in the last month.
President of the Vijayawada Builders’ Association, Gadde Rajling, said there was a sudden increase in the sale of apartments.
“ The number of customers making inquiries about and buying new flats has shot up,” he said, adding that some buyers were even bulk- booking apartments on the outskirts of the city.
The text message reflects the grim real estate scenario in and around the cyber city. The ongoing agitation for a separate state of Telangana has crippled the sector, already hit hard in the past one year because of the global meltdown.
And since the Telangana agitation gained momentum in the last week of November, real estate transactions have come to a grinding halt in the state capital.
Builders who have completed their ventures are even ready to sell property for low profits, but buyers are preferring to wait, hoping the prices will further plummet.
“ Already, there is a drop of 20- 25 per cent in the price of flats in the last few weeks. The average cost of a flat which was around Rs 3,300 per sq ft in a fast- growing area such as Dilsukhnagar and Kukatpally has come down to Rs 2,500. Still, the buyers are waiting for the prices to fall further,” K. Vishnuvardhan Sarma of Vaishnavi Builders, which targets middle- class buyers, said.
C. Shekhar Reddy, president of AP Builders’ Forum, said the recession- hit sector had already been stagnating, as a result of which the prices already crashed.
Many real estate ventures launched in high- profile areas such as Gachibowli, Gopannapalli, Manikonda, Vattinagulapalli and Tellapur before the meltdown are either still under construction or failed to take off because of the lack of prospective buyers — mostly software professionals and entrepreneurs.
“ We had paid huge amounts as advance to landowners from whom we took the plots for building residential complexes.
But we had to stop construction midway because of the recession.
At a time when the real estate sector started showing the signs of recovery, the Telangana agitation has come as a bolt from the blue. All our activities have come to a standstill again,” a real estate developer in the Gopannapalli area said.
P. Nagaraju, chairman of the PNR group of constructions, said there were no buyers even if the builders offered the flats at low prices. “ Worse still, those who booked some of the flats are now pressuring us to return the advance amount. They are prepared to forfeit a lakh or two, but want to cancel their bookings, fearing that the property values will come down drastically in future,” Nagaraju, one of the top 10 real estate dealers in Hyderabad, said.
“ The sooner the Telangana issue is resolved, the better. We don’t mind the formation of a separate state. At least then, the real estate activity will pick up,” he said.
Interestingly, the property prices have started shooting up in the Vijayawada- Guntur area because of speculation that the belt will be made the capital of Andhra in the event of the formation of a separate Telangana.
According to reports, real estate prices in Vijayawada have gone up by 15- 20 per cent in the last month.
President of the Vijayawada Builders’ Association, Gadde Rajling, said there was a sudden increase in the sale of apartments.
“ The number of customers making inquiries about and buying new flats has shot up,” he said, adding that some buyers were even bulk- booking apartments on the outskirts of the city.
Friday, December 18, 2009
Time for realtors to accept realities
Surely, it must be a surreal feeling for those who rode the heights of real estate boom during last few years. As the boom started to crumble and with interest in property evaporating fast in the wake of a series of events from economic slowdown to Telangana and Andhra agitations, those who sold properties like hot cakes must be finding the present circumstances hard to digest.
Even before they could reconcile to the turn of events from Telangana agitation and the moves of the Centre, came the agitation in other parts. This pushed the prospective buyers, even the genuine ones, further deep into the wait and watch mode. Projects put on hold, half-completed towers, accumulating construction material and no buyers dropping in at their plush offices clearly is forcing the reality boom accept the realities.
hyderaba properties, properties in hyderabad, Real estate news, hyderabad real estate,
Even before they could reconcile to the turn of events from Telangana agitation and the moves of the Centre, came the agitation in other parts. This pushed the prospective buyers, even the genuine ones, further deep into the wait and watch mode. Projects put on hold, half-completed towers, accumulating construction material and no buyers dropping in at their plush offices clearly is forcing the reality boom accept the realities.
hyderaba properties, properties in hyderabad, Real estate news, hyderabad real estate,
Saturday, December 5, 2009
Housing projects: Living life king size
It is tough to contain dreams. Till recently, duplex houses and villas would have topped the dream list of high income group families in the city of Nawabs but with changing lifestyles, newer avenues are opening up and what could be better than owning a house in a golf community.
Catering to such aspirants, property developers are now coming up with housing projects that include golf courses, golf clubs, water bodies, spas, gyms, swimming pools and above all lush green surroundings.
These projects help them live life like a king, observed legendary cricketer Kapil Dev while promoting Dax Properties, Golf Retreat, a golf community housing project at Shadnagar.
Golf Retreat is a 300-acre project with 1,100 villas overlooking an 18-hole golf course.
Each villa would be developed in a space ranging from 5,000 sq. ft to 15,000 sq. ft and given the facilities being provided, each comes with a minimum price tag of Rs.85 lakh and goes upwards to Rs. 2.5 crore, says Dax Properties Managing Director Masood Hassan.
Projects like these are targeted at high net worth individuals(HNIs) and NRIs. If need be, they can be promoted and sold to a premium class overseas as well. There is still lot of scope for such projects in the city, explains Mr. Hassan.
“Ours is a Rs. 500 crore project with more individual investments. In phase-I, we plan to construct 250 villas overlooking a six-hole golf course. Already, the pre-launch sales have opened partially and we wish to complete phase-I in 12 to 14 months”, he adds.
hyderaba properties, properties in hyderabad,
Catering to such aspirants, property developers are now coming up with housing projects that include golf courses, golf clubs, water bodies, spas, gyms, swimming pools and above all lush green surroundings.
These projects help them live life like a king, observed legendary cricketer Kapil Dev while promoting Dax Properties, Golf Retreat, a golf community housing project at Shadnagar.
Golf Retreat is a 300-acre project with 1,100 villas overlooking an 18-hole golf course.
Each villa would be developed in a space ranging from 5,000 sq. ft to 15,000 sq. ft and given the facilities being provided, each comes with a minimum price tag of Rs.85 lakh and goes upwards to Rs. 2.5 crore, says Dax Properties Managing Director Masood Hassan.
Projects like these are targeted at high net worth individuals(HNIs) and NRIs. If need be, they can be promoted and sold to a premium class overseas as well. There is still lot of scope for such projects in the city, explains Mr. Hassan.
“Ours is a Rs. 500 crore project with more individual investments. In phase-I, we plan to construct 250 villas overlooking a six-hole golf course. Already, the pre-launch sales have opened partially and we wish to complete phase-I in 12 to 14 months”, he adds.
hyderaba properties, properties in hyderabad,
Friday, November 13, 2009
India property show to be held on November 13-14
A two-day property show will be held at Ramada Plaza in Doha on November 13 and 14 to showcase residential and commercial projects available across India for NRIs in Qatar.
Organised by Chennai based Priya Publications, publishers of real estate magazines, the ninth global show will display varied residential and commercial projects ranging from apartments, developed plots to villas and leased units. An estimated 15 exhibitors from cities like Bangalore, Chennai, Hyderabad, Kochi and Mumbai will display their projects. Home loans will be offered by housing finance companies. Spot approval of home loans will be made available to NRIs during the show on production of basic documents salary slip, employment certificate and bank statement.
A seminar on NRI investment in real estate will be held every day at 5 pm to apprise expatriate Indians in Qatar on the current Indian real estate market scenario, rules and regulations governing NRI investment and tips for tax planning. The entry is free and the timings are from 10am to 9pm on both the days.
Business, hyderaba properties, properties in hyderabad,
Organised by Chennai based Priya Publications, publishers of real estate magazines, the ninth global show will display varied residential and commercial projects ranging from apartments, developed plots to villas and leased units. An estimated 15 exhibitors from cities like Bangalore, Chennai, Hyderabad, Kochi and Mumbai will display their projects. Home loans will be offered by housing finance companies. Spot approval of home loans will be made available to NRIs during the show on production of basic documents salary slip, employment certificate and bank statement.
A seminar on NRI investment in real estate will be held every day at 5 pm to apprise expatriate Indians in Qatar on the current Indian real estate market scenario, rules and regulations governing NRI investment and tips for tax planning. The entry is free and the timings are from 10am to 9pm on both the days.
Business, hyderaba properties, properties in hyderabad,
Tuesday, November 10, 2009
One hundred per cent rent-free models
To beat the high cost of finance and lack of interest among top retailers, developers are now hitting upon novel revenue-sharing schemes. Entertainment World Developers Private Limited (EWDPL) recently announced what it claims is the country’s “first 100 per cent rent free, revenue sharing retail model. Named Treasure Showcase, on offer are 20 malls in 11 states with a space of 1 million sq.ft. in cities like Mohali, Lucknow, Agra, Bareilly, Udaipur and Bhilai. They will hawk apparel, footwear, electronics, food, cosmetics, jewellery and furnishing.
For starters, there is no rent, no CAM, no deposit, and no maintenance for the booked space. The Group is expecting a revenue generation of over 500 crore by 2011. “The concept is based on a transparent, pre-determined, margin sharing revenue model,” said Manish Kalani, managing director of EWDPL.
Incidentally, the revenue-sharing model is not unique to private projects. Last year, the National Highway Authority of India (NHAI) had awarded three mega projects worth Rs 2,150 crore over 215 km on this model, to beat the steep cost of finance in a slow market and delays by builders. The projects on this model include the Gonde-Nashik-Pimpalgaon stretch, MP-Maharashtra border Dhule project and the Kishangarh-Beawar projects.
Experts contend that this model makes sense when developers see strong prospects of market improvement. Besides creating interest among retailers, this also gives mall developers the leeway to earn more. Fixed rentals could be a dampener, especially where retailers have agreed to increase rentals only by 10-15 per cent every year.
“For upcoming malls, indications are that the rent to revenue ratio would see a dip from 40-50 per cent to 25 per cent in the next few months,” says J Suresh CEO of Arvind Brands, that markets international brands such as Arrow, Gant, Cherokee etc.
hyderaba properties, properties in hyderabad, hyderabad city,
For starters, there is no rent, no CAM, no deposit, and no maintenance for the booked space. The Group is expecting a revenue generation of over 500 crore by 2011. “The concept is based on a transparent, pre-determined, margin sharing revenue model,” said Manish Kalani, managing director of EWDPL.
Incidentally, the revenue-sharing model is not unique to private projects. Last year, the National Highway Authority of India (NHAI) had awarded three mega projects worth Rs 2,150 crore over 215 km on this model, to beat the steep cost of finance in a slow market and delays by builders. The projects on this model include the Gonde-Nashik-Pimpalgaon stretch, MP-Maharashtra border Dhule project and the Kishangarh-Beawar projects.
Experts contend that this model makes sense when developers see strong prospects of market improvement. Besides creating interest among retailers, this also gives mall developers the leeway to earn more. Fixed rentals could be a dampener, especially where retailers have agreed to increase rentals only by 10-15 per cent every year.
“For upcoming malls, indications are that the rent to revenue ratio would see a dip from 40-50 per cent to 25 per cent in the next few months,” says J Suresh CEO of Arvind Brands, that markets international brands such as Arrow, Gant, Cherokee etc.
hyderaba properties, properties in hyderabad, hyderabad city,
Sunday, November 8, 2009
Real Estate: Buy A Flat, Get Rs 25k Per Month!!
Wondering what this is about? Well, this is the new offer that is being given by the PNR group.
The project is titled Nagarjuna Dreamland situated in hyderabad.The best part is builders have announced that if you are buying a three bedroom flat with them, they are ready to pay Rs 25000 as rent for the first two years on ready for occupation flats
It is the plight of Real Estate indeed. The recession blow to the field has carved this strategy of winning the attention of people. It is known that many have been interested in owning flats or villas for investment sake and for rental income. But looking at the present scenario, the rental values have come down and not picking up in many places. Hence Nagarjuna Dreamland has planned this way of paying a considerable rent of Rs 25000 to the customer. The loan facility is also being provided by the developers.
Real Estate experts say that it is a workable concept by developers and worthy for investors at this juncture.
The venture has state of the art infrastructure with gated community, wi-fi enabled clubhouse facilities. There will be swimming pool, kids play area, lounges, ample parking, Gym, party house etc. There are other amenities as well that the customers can choose.
The venture offers 2 bedroom, 3 bedroom, 4 bedroom apartments and also villas. So folks, grab the opportunity while you can. All you need to do is call up 040- 65699090, 93935 56690, 93935 57790.More details can be had on visiting the site www.pnr.in or emailing them at sales@pnr.in .
hyderaba properties, hyderabad real estate, Real estate news,
The project is titled Nagarjuna Dreamland situated in hyderabad.The best part is builders have announced that if you are buying a three bedroom flat with them, they are ready to pay Rs 25000 as rent for the first two years on ready for occupation flats
It is the plight of Real Estate indeed. The recession blow to the field has carved this strategy of winning the attention of people. It is known that many have been interested in owning flats or villas for investment sake and for rental income. But looking at the present scenario, the rental values have come down and not picking up in many places. Hence Nagarjuna Dreamland has planned this way of paying a considerable rent of Rs 25000 to the customer. The loan facility is also being provided by the developers.
Real Estate experts say that it is a workable concept by developers and worthy for investors at this juncture.
The venture has state of the art infrastructure with gated community, wi-fi enabled clubhouse facilities. There will be swimming pool, kids play area, lounges, ample parking, Gym, party house etc. There are other amenities as well that the customers can choose.
The venture offers 2 bedroom, 3 bedroom, 4 bedroom apartments and also villas. So folks, grab the opportunity while you can. All you need to do is call up 040- 65699090, 93935 56690, 93935 57790.More details can be had on visiting the site www.pnr.in or emailing them at sales@pnr.in .
hyderaba properties, hyderabad real estate, Real estate news,
Wednesday, July 29, 2009
Notices served on IVRCL
The Labour Department on Tuesday served notice on IVRCL Infrastructure and Projects Limited under the Workmen Compensation Act directing it to deposit Rs. 4.40 lakh within 30 days for the benefit of two labourers who were buried alive in a trench on Monday while executing municipal works.
The victims, S. Venkatesh and N. Krishna, died due to the company’s negligence in ensuring minimum safety measures like helmets, safety shoes and other preventive measures as required under
The Building and Other Constructions Workers, said Joint Commissioner of Labour B. Ajay.
Tuesday, July 28, 2009
State against House panel probe on fee
The state government on Monday turned down a demand by the Congress MLA, Mr E. Pratap Reddy, for a House committee probe into the flouting of rules and charging of heavy fee by corporate school and college managements.
Members cutting across party lines expressed ire at the antics of corporate educational institutions.
An agitated Mr Pratap Reddy hit out at corporate managements but when he demanded an Assembly committee probe, the Chief Minister, Dr Y.S. Rajasekhar Reddy, signalled to the school education minister, Mr D. Varaprasada Rao, not to accede to it.
Following this, the minister turned down the demand and said that the government would conduct inquiries into the specific allegations.
It all started with the TRS member, Mr T. Harish Rao, alleging that colleges such as Narayana and Sri Chaitanya had monopolised intermediate education denying space for small players.
The TRS member questioned the rationale behind the government reimbursing Rs 30,000 for each poor student studying in corporate colleges instead of punishing the managements for levying high fee.
However, the minister clarified that the fee was for boarding, food bill and Eamcet coaching and requested members not to make an issue out of it as it would affect poor students.
Members cutting across party lines expressed ire at the antics of corporate educational institutions.
An agitated Mr Pratap Reddy hit out at corporate managements but when he demanded an Assembly committee probe, the Chief Minister, Dr Y.S. Rajasekhar Reddy, signalled to the school education minister, Mr D. Varaprasada Rao, not to accede to it.
Following this, the minister turned down the demand and said that the government would conduct inquiries into the specific allegations.
It all started with the TRS member, Mr T. Harish Rao, alleging that colleges such as Narayana and Sri Chaitanya had monopolised intermediate education denying space for small players.
The TRS member questioned the rationale behind the government reimbursing Rs 30,000 for each poor student studying in corporate colleges instead of punishing the managements for levying high fee.
However, the minister clarified that the fee was for boarding, food bill and Eamcet coaching and requested members not to make an issue out of it as it would affect poor students.
Thursday, July 23, 2009
Fate of penthouses on July 25
The officials of the Greater Hyderabad Municipal Corporation (GHMC) will meet on July 25 to decide on the penthouses pending under the Building Penalisation Scheme (BPS).
There are about 1,500 applications relating to penthouses on multi-storeyed buildings having five or more floors.
However, majority of the applicants have not submitted the mandatory “no objection certificate” which has to be issued by the fire services department and the Airports Authority of India.
The GHMC officials and the fire department will finalise the fire safety norms to be stipulated for regularisation of penthouses. Also, the meeting is expected to take a decision on relaxing norms on the fire safety equipment to be installed by the penthouse owner.
Besides, an NOC from the AAI is difficult to get and a decision on this front is also likely to be taken at the meeting, sources said.
The GHMC chief city planner, Mr Purushotham Reddy, said the meeting is aimed at listing out feasible guidelines facilitating owners of penthouses to provide fire safety equipment to get an NOC. “For this reason, the director-general of fire services will be participating in the meeting to facilitate spot decisions,” he said.
Meanwhile, the GHMC has decided to conduct BPS melas every Monday and Tuesday. The building regularisation certificates would be given on these two days every week, and pending documents along with penalisation charges will be accepted on the remaining days of the week.
There are about 1,500 applications relating to penthouses on multi-storeyed buildings having five or more floors.
However, majority of the applicants have not submitted the mandatory “no objection certificate” which has to be issued by the fire services department and the Airports Authority of India.
The GHMC officials and the fire department will finalise the fire safety norms to be stipulated for regularisation of penthouses. Also, the meeting is expected to take a decision on relaxing norms on the fire safety equipment to be installed by the penthouse owner.
Besides, an NOC from the AAI is difficult to get and a decision on this front is also likely to be taken at the meeting, sources said.
The GHMC chief city planner, Mr Purushotham Reddy, said the meeting is aimed at listing out feasible guidelines facilitating owners of penthouses to provide fire safety equipment to get an NOC. “For this reason, the director-general of fire services will be participating in the meeting to facilitate spot decisions,” he said.
Meanwhile, the GHMC has decided to conduct BPS melas every Monday and Tuesday. The building regularisation certificates would be given on these two days every week, and pending documents along with penalisation charges will be accepted on the remaining days of the week.
Wednesday, July 15, 2009
Nagarjuna to go on sans Maytas
Nagarjuna Construction Company (NCC) is preparing a plan to come out of Maytas Infra's shadow in the projects being handled by both.NCC and Maytas have joined forces in eight projects. While one of these is operational and three on the backburner, NCC is making arrangements to carry out the remaining projects without waiting for Maytas to bring in funds.
For the remaining four projects, NCC is preparing to either bring in partners in place of Maytas, or contribute the funds on its own. Critical among them is the Pondicherry-Tindivanam road project. The 36 km project is estimated to cost about Rs 315 crore, with an equity component of Rs 90 crore.
While Maytas holds about 51% in this project, NCC holds 49%. "The project is about 30% complete and we are now looking for a third partner to plug the Maytas gap. This will help us in meeting the deadline of June 2010 for operationalising the project," NCC's executive VP (finance) Y D Murthy told DNA Money.
Another project is the Himachal Sorang hydro-electric project, being jointly developed by NCC and Maytas along with SSJV Projects. Taken up with an outlay of Rs 600 crore, the three partners have one-third equity in the project. The project is scheduled to commence operations in December 2010. "Maytas has brought in about Rs 18 crore so far and the future equity from Maytas is a question. If Maytas is unable to bring in the required equity, NCC will complete the project," he said.
The Western UP toll way and Bangalore elevated toll way are the other two projects. Here, however, the work is at an advanced stage. While about 80% of work is complete for the Western UP toll way, the Bangalore project is about 90% complete.
The Western UP project was taken up by Gayatri Projects (40% equity), NCC (30%) and Maytas (30%) with a deadline to make the project operational by December 2009.
Maytas is yet to bring in about Rs 5 crore into the project. For the Bangalore elevated toll way, NCC and Maytas have partnered with Soma with one-third equity each. In this project, Maytas is yet to bring in Rs 7 crore.
"For both projects, NCC and the other partner are bringing in the money that was to be contributed by Maytas to complete the projects on schedule," Murthy said. The Brindavan express toll way in Karnataka is the only project NCC and Maytas have been able to make operational. The project, built with an outlay of Rs 247 crore, has been operational for the last three years.
The three projects on the backburner include two airport projects -- at Shimoga and Gulbarga -- and the Machilipatnam port project in Andhra Pradesh. "For the airports, it is the real estate that holds the key. These are small airports and they can't survive just on air traffic. The real estate that can be created along with the airports is crucial. These projects are estimated to cost about Rs 50 crore each. Considering the market conditions, these projects are on the backburner," Murthy said.
The Machilipatnam port project is stuck in land acquisition-related issues. The project was planned with an estimated cost of about Rs 1,600 crore spread over 6,200 acres. Along with Maytas and NCC, Srei and the Chatterjee Group too are partners. While NCC has about 25% share, Maytas has 26% equity. Srei and Chatterjee hold 49% together.
"There are land acquisition issues in the project. Even otherwise, Maytas' ability to bring in equity into this project is under question now. This project is on hold," Murthy said.
NCC currently has an order book of Rs 12,200 crore. The infrastructure major, which was focusing more on road projects, is now looking at other opportunities.
"Earlier, we used have about 25% of our order book from roads. Now, it is down to 8%. There are other opportunities in power, metals, oil & gas and mining. The focus now is on having a diversified portfolio," he explained.
The company is also pinning hopes on the freight corridor plans announced by the government for finalising its foray into railways.
For the remaining four projects, NCC is preparing to either bring in partners in place of Maytas, or contribute the funds on its own. Critical among them is the Pondicherry-Tindivanam road project. The 36 km project is estimated to cost about Rs 315 crore, with an equity component of Rs 90 crore.
While Maytas holds about 51% in this project, NCC holds 49%. "The project is about 30% complete and we are now looking for a third partner to plug the Maytas gap. This will help us in meeting the deadline of June 2010 for operationalising the project," NCC's executive VP (finance) Y D Murthy told DNA Money.
Another project is the Himachal Sorang hydro-electric project, being jointly developed by NCC and Maytas along with SSJV Projects. Taken up with an outlay of Rs 600 crore, the three partners have one-third equity in the project. The project is scheduled to commence operations in December 2010. "Maytas has brought in about Rs 18 crore so far and the future equity from Maytas is a question. If Maytas is unable to bring in the required equity, NCC will complete the project," he said.
The Western UP toll way and Bangalore elevated toll way are the other two projects. Here, however, the work is at an advanced stage. While about 80% of work is complete for the Western UP toll way, the Bangalore project is about 90% complete.
The Western UP project was taken up by Gayatri Projects (40% equity), NCC (30%) and Maytas (30%) with a deadline to make the project operational by December 2009.
Maytas is yet to bring in about Rs 5 crore into the project. For the Bangalore elevated toll way, NCC and Maytas have partnered with Soma with one-third equity each. In this project, Maytas is yet to bring in Rs 7 crore.
"For both projects, NCC and the other partner are bringing in the money that was to be contributed by Maytas to complete the projects on schedule," Murthy said. The Brindavan express toll way in Karnataka is the only project NCC and Maytas have been able to make operational. The project, built with an outlay of Rs 247 crore, has been operational for the last three years.
The three projects on the backburner include two airport projects -- at Shimoga and Gulbarga -- and the Machilipatnam port project in Andhra Pradesh. "For the airports, it is the real estate that holds the key. These are small airports and they can't survive just on air traffic. The real estate that can be created along with the airports is crucial. These projects are estimated to cost about Rs 50 crore each. Considering the market conditions, these projects are on the backburner," Murthy said.
The Machilipatnam port project is stuck in land acquisition-related issues. The project was planned with an estimated cost of about Rs 1,600 crore spread over 6,200 acres. Along with Maytas and NCC, Srei and the Chatterjee Group too are partners. While NCC has about 25% share, Maytas has 26% equity. Srei and Chatterjee hold 49% together.
"There are land acquisition issues in the project. Even otherwise, Maytas' ability to bring in equity into this project is under question now. This project is on hold," Murthy said.
NCC currently has an order book of Rs 12,200 crore. The infrastructure major, which was focusing more on road projects, is now looking at other opportunities.
"Earlier, we used have about 25% of our order book from roads. Now, it is down to 8%. There are other opportunities in power, metals, oil & gas and mining. The focus now is on having a diversified portfolio," he explained.
The company is also pinning hopes on the freight corridor plans announced by the government for finalising its foray into railways.
Tuesday, July 14, 2009
Maytas effect: More idle projects face axe
After rejecting Maytas Infra from the Metro Rail project, the state government has decided to crack the whip on other companies which have been delaying major infrastructure projects.
The much-hyped 100-storied tower by Anil Ambani’s Reliance group, the Special Economic Zone and oil refinery at Kakinada, which is jointly promoted by the GMR and Kakinada Sea Ports Limited, Machilipatnam port and IT SEZs on the city outskirts are under scanner.
Work on irrigation projects such as Pulichintala and Polavaram besides the Outer Ring Road have also been going on at snail’s pace, thanks to the indifferent attitude of contractors.
“It is high time the government sends out a clear message to them to execute the projects or face the axe,” said a senior official.
Sources said the KSEZ promoters have raised new demands, including a captive port and a promise that no other refinery shall be allowed in the coast. They are ascribing the delay to problems in land acquisition though the state has already alloted 5,000 acres.
Reliance group has also been inactive on the tower project taken up in October 2007 though it should be completed in four years.
Similarly, Raheja, Indu and Bramhani groups were alloted 250 acres each to build IT SEZs, but there is little progress. The government could cancel the projects on grounds of delay.
The much-hyped 100-storied tower by Anil Ambani’s Reliance group, the Special Economic Zone and oil refinery at Kakinada, which is jointly promoted by the GMR and Kakinada Sea Ports Limited, Machilipatnam port and IT SEZs on the city outskirts are under scanner.
Work on irrigation projects such as Pulichintala and Polavaram besides the Outer Ring Road have also been going on at snail’s pace, thanks to the indifferent attitude of contractors.
“It is high time the government sends out a clear message to them to execute the projects or face the axe,” said a senior official.
Sources said the KSEZ promoters have raised new demands, including a captive port and a promise that no other refinery shall be allowed in the coast. They are ascribing the delay to problems in land acquisition though the state has already alloted 5,000 acres.
Reliance group has also been inactive on the tower project taken up in October 2007 though it should be completed in four years.
Similarly, Raheja, Indu and Bramhani groups were alloted 250 acres each to build IT SEZs, but there is little progress. The government could cancel the projects on grounds of delay.
Friday, June 26, 2009
Residential spaces looking up again
There is finally good news for the realty market. After months of being stagnant, the real estate market across the country is showing some signs of revival. Demand in the residential segment is picking up and is growing by 10 to 20 per cent in the current financial year as compared to the last.
Thanks to depreciating property prices combined with the recent cuts in home loan interest rates along with a stable government at the Centre and their economic policies in place, a much-needed impetus has been given to the real estate sector. Going by industry sources, sales have picked up in almost all metro cities including Delhi-NCR, Mum-bai, Bengaluru, Chennai and Hyderabad. The last two months have seen the market suddenly turn positive with investors and especially end-users flocking in with their demands. Informs Manu Garg of Landcraft Developers, “There is a definite sign of revival in the realty arena. We have already seen some movement in the real estate market over the last two to three months. The good thing is that a high percentage of end-users are going in to buy, which is a healthy pre-indication of a mature and transparent market. Since speculative activities have been wiped out almost completely, things will change for the better with the government’s favourable economic policies.”
Adds R.R. Nair, director and CEO, LIC housing finance, “There has been a 40 per cent increase in the number of applications for home loans in the last two months. Since the market is picking up, we aim to sanction about Rs 12,000-13,000 crore this financial year.”
Not only is the property market coming out of the shadows, but the icing on the cake has been Union finance minister Pranab Mukherjee's latest initiative of exhorting public sector banks to further cut interest rates on home, retail loans and industrial lending to give the economy a boost. Says Rohtas Goel, CMD, Omaxe Ltd, “The move by the FM is a welcome step and is the need of the hour. I am hopeful that this will extend the affordability of loans to the masses. We expect the move to help in reviving the real estate sector — bringing relief to both the end-user and the developer. As the real estate sector has a multiplier affect for many associated industries and employment at large, the initiative will act as a boon to the sector and the country’s economy in turn.”
Avers Bhim Yadav, CEO of Falcon Realty Services, “Sentiment will improve significantly giving confidence to the industry, investors, buyers and the public at large. Further reduction in interest rates by public sector banks in order to boost credit demand will now bring down EMIs and this will further help buyers to go for affordable housing.”
There is no doubt that the dip in property prices has opened up avenues for the common man. Says Sunil Pandey, a realty expert from Delhi, “Those who always wanted to buy a home but did not dare venture into the volatile realty market are now buying a property of their choice.” And at rates that could well suit their pockets. On the other hand the developer and builder community is fast gauging the type of demand that exists and from the trends it seems clear that affordable housing will be the flavour of the months to come.
Sums up Sunil Jindal of the SVP Group, “There are many things that developers have to learn from the past year and implement those results in the coming year. A fall in sales does not mean that demand does not exist. It only means that somewhere down the line developers went gone wrong in tapping the right demand and supply according to it. Price cuts are one of the tools that developers used in 2008 and these will be used in 2009 as well. When we say affordable housing we have to define a price band. According to me the right price band would be Rs 25 lakh to Rs 35 lakh. Those developers who target this range will come out in winning colours. But to say that only price cuts will revive the industry would be asking for too much.”
All in all the current situation at ground zero seems to be favouring consumers and this period can be used by people who have wanted to buy property but just could not afford to, given the set of circumstances earlier.
Wednesday, June 17, 2009
No sign of their dream homes yet
The hydra-effect of the recession is now having repercussions on home-buyers. Investing in real estate — an established ‘safe’ way to sink your life savings — has turned into a luck of the draw with several realtors not living up to their promises. Lakhs of rupees paid as advances are now stuck with construction companies who over-leveraged themselves promising customers “international” residences complete with club houses, pools, community centres and the works.
As many as a thousand buyers at Hill County, flagship project of Maytas Properties Limited, which was part of erstwhile Satyam Group of companies, are the worst victims as the developer failed to complete the project even after receiving complete payments. Most customers trusted the Satyam brand and some have even paid up to Rs 1 crore as the full amount for villas to own their dream home.
Poorna Chandra Rao Pabbati, one of the buyers complains, “Instead of commencing the work, after the Satyam scandal broke, the developers are giving vague and evasive response to the buyers. the government must look into the episode and do justice to all the buyers.”
Customers of other major companies such as Aliens Group and Suchirindia too are getting jittery, though the builders claim that projects are being completed as per schedule. Aliens Group managing director Hari Challa says, “We assure that we will complete Aliens space station-1 by September, 2011, which was clearly mentioned in the agreement copy. Work has been going on in full swing as we have already sold 75 per cent of flats. A few recession-hit clients even asked us to return their money, and we’ve done that promptly.”
But it’s not just the big timers who have been affected. Several small time builders in smaller townships who attracted customers with their colourful brochures and tall promises are absconding now. “We paid Rs 5 lakh to the builder of Sai Nilayam. He is evading all the buyers and has switched off his mobile phone,” says an irate buyer Devata Srinivasa Rao.
Buyers of government owned Rajiv Swagruha Corporation too are up in arms against the officials as they have not only failed to deliver the houses but are also unable to return deposits, though the project was launched in March 2007. “I paid Rs 2.42 lakh as first installment for a house under the Swagruha scheme. They cancelled the allotment and did not return my money,” says Mayura Rathi, an investor.
Good news though is that consumers who feel shortchanged can do more than just crib. There are several statutes in place to protect the interests of realty investors. For instance, if the construction is postponed due to bad weather or lack of permissions, customers are eligible for receiving a rent of Rs 3 to 5 per sft. AP High Court, senior advocate N. Ramachander Rao says, “Customers can approach the consumer forum if the builder does not respond properly. They can demand a refund of the advance paid with an interest from the builder if the project is delayed.”
It’s advisable to know the compensation clauses and rules to avoid falling into builders’ trap, he adds.
Courtesy:Deccan Chronicle
Sunday, June 14, 2009
A settlement in rent litigation is wise
A compromise or reaching an understanding over any dispute is always advisable. There is no contentious issue that cannot be resolved. Personality development experts say that just as every lock is made with at least two keys, there is no problem without a solution. Rent disputes are no exception.
If there is no agreement it is not possible for the landlord and tenant to reach out to each other in order to lease out. If any dispute arises over a continued leasehold relationship, it is not beyond a solution.
The Rent Controller is not the only destination. One should find an alternative to prolonged litigation for this kind of small matter. Even after filing a rent control dispute, there is always the possibility of arriving at a compromise, conclusion, consent over certain agreeable terms, a midway or any other settlement.
Litigation is not ruled out as an option, but it should be the last resort and even during the litigation, one should look for a possible approach which would lead to ending the dispute.
There are neither technical nor legal hitches for parties who — in the case of a rent dispute, want to enter into a compromise and end the litigation. The Rent Controller has enough power to record the compromise.
However there is one limitation. If the compromise or contract reached during the litigation by-passes the protections provided to the tenant, such a contract might not get the stamp and seal of the court. For example, even if the tenant agrees to pay an ‘exorbitant’ rent, the Rent Controller might doubt whether it was agreed to with a free mind and examine whether it would serve the reasonable interests of the parties as per the welfare legislation such as Rent Control Orders. Even where it has been agreed by the tenant that a building would be vacated, the Controller can pass an order only when the case is covered under any of the situations enumerated in the law for eviction. The legal position would be the same even though such a contract is embodied in a compromise entered into between the parties where it is a contract by passing the provisions of the Act which is intended to save tenants even from their own contracts.
The Rent Acts are definitely exceptions to the general law that applies to landlord and tenant. There is a bar on the parties to contract themselves out of the obligations under the Act or to agree to resort to a procedure not contemplated by the enactment. The Civil Procedure Code Rule 3 of Order 23 envisages a decree being passed in respect of part of the subject-matter of a suit on a compromise. Rule 6 of Order 12 permits the passing of a judgment at any stage without waiting for the determination of other questions. However, if the parties make a reasonable settlement, though it results in a condition where both the parties have to concede certain concessions, it cannot be stated to be illegal. It is up to the parties to rent, contract or lease to take advantage of protections and benefits offered by special laws such as Rent Control Act, or they may also prefer to waive some of those rights, benefits or advantages partly or totally. It cannot be stated as illegal or immoral or offending any public right or public policy, only because these benefits have been waived. If the court reviews and considers the compromise as reasonable and workable it could affix its seal and end the litigation. One of the major benefits of the termination of litigation on a compromise is that it cannot be appealed. The parties can calculate the benefits of the compromise and that will be reviewed by the court any way. It is always wise to end the litigation with a calculated understanding called a ‘settlement’.
Courtesy:Deccan Chronical
Tuesday, June 9, 2009
Spacing it out with three ‘R’s
The erstwhile Central Business Districts of Abids-Koti as well as industrial areas of Sanatnagar, Azamabad, Kattedan in Chandrayanagutta and parts of old city are to become Regeneration, Renewal and Redevelopment Zones (RRRZs) in the new Master Plan (MP).
The plan in its final stages of preparation for the ex-MCH region focuses on flexible land use policy, infrastructure development along with RRRZs to initiate special development housing projects to cater to the rise in residents to 2.58 million. The total population is estimated to reach 6.13 million by 2031.
These special projects are to be undertaken with amalgamation of plots involving various departments and citizens. The MP has mooted rebates in building fee and charges ranging from 25 per cent to 50 per cent depending on the area of the plot, to the developers or owners.
Added incentive
Further, a moratorium in payment of property tax from two to five years too has been mooted as an added incentive to encourage group housing. Alternatively, it has also suggested a special discount in fee and charges from 25 per cent to 50 per cent to push road-widening depending to the extent of land lost.
RRRZs are to be divided into three categories to propel redevelopment through partnerships. Abids, its environs and parts of the old city constitute the first and second categories where area proposed for development should be between 9 -12 metres minimum road widths with plot sizes between 1,000 sq.mts and 2,000 sq.mts. Existing residents will be rehabilitated at the same site with minimum equivalent built-up area.
Prospective builders or owners will have to furnish a Rs. 100 stamp paper along with application for building permission.
These new structures will have one extra floor more than permitted under the common building rules subject to fire safety requirements.
In the third category of parts of the old city, plot sizes for redevelopment should have a minimum of 4,000 sq.mts with abutting road widths of 18 mts.
Open spaces within should be at least 36 sq.mts with six metre width for buildings with three floors high (10 metres), 64 sq.mts with minimum eight metre width for four floors (12 mts) and 100 sq.mts with 10 mts width for five floors (15 mts).
Parking is to be allowed in stilt floor and each of the group housing mooted should be separated by six metres. While no setbacks are required for interior clusters since open spaces are in built, those in the end adjoining roads should have a 1.5 mts setback. Land use conversion charges will also not be charged.
Public utilities
Five per cent of the site should be handed over free to GHMC for shifting public utilities.
In order to encourage social housing mix in the re-development housing programme, no fees or charges are proposed to be collected for developing Economically Weaker Sections (EWS) or Low Income Group (LIG) housing units in a separate block or floor. Prospective developers have to provide 10 per cent of total built up area for EWS/LIG with built up areas of 25 sq.mts and 40 sq.mts units, respectively, in equal measure.
In return, they will also be given an extra floor subject to mandated fire safety norms. Currently, data is being gathered from various departments to be integrated into the plan.
Monday, June 8, 2009
Maytas ‘Hill County’ plan falls flat
Maytas Hill County, the prestigious project of Maytas Properties Limited, has failed to deliver over 300 bungalows and villas and 840 flats after collecting Rs 650 crore from its customers. The Hill County Home Owners’ Welfare Association, formed after the Satyam scam broke in January 2009, wants to present their case to the Company Law Board (CLB). Their demands are: directives from the CLB to the promoters for time-bound delivery of the dwelling units, compensation for the loss due to delays and punitive action in case of further delay.
The association has written to the chairman of the CLB, the Chief Minister, Dr Y.S. Rajasekhar Reddy, the chief secretary and senior officials alleging that the promoters of MPL have diverted funds. “The association secretary, Mr Anil Kumar Katakam, said many buyers had paid either the entire amount or sums ranging between Rs 40 lakh and Rs 5 crore. We now want to be impleaded as an affected party in the case pending before the CLB,” he said after a meeting on Sunday.
“The promoters have taken additional money from home owners whose units are almost complete, offering to repay such funds in around six months’ time. Some owners are trying to complete construction on their own and move in, despite inadequate infrastructure support,” said Mr Anil Kumar. The association president, Mr Satish Tirupati, said they were promised handing over of completed units by March 2008.
Only half-a-dozen independent bungalows have been completed while the apartments have only the RCC shell in some towers. Some do not have even the structure.
The promoters have virtually closed down operations, sacked most of their employees, disposed of assets and are currently lying low.
courtesy:Deccan chronicle
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