Hyderabad Real Estate Market News
Real estate market news in Hyderabad brings you up to date information vis-à-vis any development in the domain of local real estate market. You are also supplied with the information on the current status of development work at major construction sites. Moreover, the knowledge of present market trend in Hyderabad Properties a must for real estate investor seeking viable avenues for promising returns. Hyderabad is a potential real estate market with various property investment opportunities. Builders and developers in India have marked Hyderabad as a major real estate ground with some of their most ambitious residential and commercial projects drafted for the city of Pearls. The Hyderabad real estate market news gives you updates on the upcoming housing, retail or commercial projects of the various housing companies and also the builders in Hyderabad.
Being a major IT hub of India, Hyderabad is witnessing emergence of numerous integrated townships, Business Technology Parks, IT Parks , corporate office complexes, shopping and leisure zones etc. A follow up of each real estate developments is available through the real estate market news available through various media like TV, radio and now the Internet. Online Hyderabad real estate market news websites have gained much popularity owing to the popularity of Hyderabad city as a potential investment destination.
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Hyderabad Real Estate Prices on Upward Move after an Year of Stagnation. Unresolved GO45 issue has potential to raise price by 20% overnight
The citys realty rates that have been stagnant for over a year now,are finally witnessing an upward shift.In the last few weeks alone,the rates of several apartments across Hyderabad,which had hit rock bottom in 2009-10,have jumped by a decent 10 to 15%,say market sources.The rise is more evident among projects that are either nearing completion or are ready to occupy,they add.
On this list are,PBEL Property Development India Pvt Ltds project at APPA junction,Manjeera groups twin ventures in Kukatpally,Nagarjuna Construction Companys apartment complex in Gachibowli,Aditya Homes (P) Ltds project,`Aditya Sunshine,in Kondapur,among others.All these ventures,sources say,are now costlier by a minimum of Rs 200 per square feet (sft) with some even charging a neat Rs 400 (per sft) more for their products.The Kondapur venture for instance that was available for Rs 3,200-3,300 per sft until recently is now priced at Rs 3,600 per sft.
Predictably,Manjeera Trinity and `Manjeera Majestic that are almost complete have more buyers than other ventures,that are still in their nascent stages,around them.And this,despite their slightly expensive price tag (in comparison to others) of Rs 3,500 per sft. But while this emerging trend has city developers heaving a sigh of relief,it has taken some customers by complete surprise as they had hoped that realty rates in Hyderabad would remain low for a longer while,owing to the stalemate over Telangana.
Real Estate Regulator Bill may Tighten Screws on Developers
Selling a project without registering it with the proposed Real Estate Authority can soon land a developer behind bars, if it involves "criminal intent". Also, the erring builder may be asked to cough up a heavy penalty. These provisions are part of the draft Real Estate (Regulation and Development) Bill 2011. The Ministry of Housing and Urban Poverty Alleviation plans to seek public comments on the draft in 8-10 days. The new version has been prepared after extensive consultation with stakeholders and incorporates many changes since the first draft in mid-2009."
Our effort is to table this Bill during the Winter Session of Parliament and get it passed by the Monsoon Session," a senior Government official said. So, one can expect enactment of the law from the second half of next year. The proposed Bill aims to cover only property transactions, and all the States are expected to adhere to its provisions, reports Business Line. The official said there were plans to set up a Real Estate Authority in each State. Also, there will be a dispute settlement mechanism to amicably resolve differences between buyers and builders.
This was not part of the original draft, which had only talked about suo motu action by the proposed regulator, a source said. The original provisions pertaining to submission of bank guarantee (by builders) have also been changed, the source added. The Bill proposes that a builder or developer will first have to register with the authority. This will allow the developer to upload information on the authority's Web site. One condition could be that a developer may have to make certain documents available to intending purchasers for inspection.
These could include the title deed and approval certificate from the competent authorities. But, to collect any advance payment (over and above the basic application fee), developers will need to first enter into registered sales deed, after which they may have to produce more documents, such as information about architects and engineers. The authority's decision can be challenged in the Appellate Tribunal, which is proposed to be set up at the central level.
The Tribunal's order can be challenged in the Supreme Court. For contravention of rules, developers may be asked to pay up to 5 per cent of the total project cost. But, if the Tribunal's order is not followed, the penalty could go up to 10 per cent of the project cost. According to Pradeep Jain, chairman, Confederation of Real Estate Developers' Association of India, said the Bill's focus was mainly on regulating developers. "It does not talk of regulating other stakeholders, such as consumers, financial institutions and local sanction authorities. If, as a builder, I develop a project but the local authority delays the occupancy certificate, why should I be held liable for the delay?" he said.
Developers Concerned as Hike in Cement Prices Push Construction Cost Further Up
Construction costs for real estate developers have gone up by 15-20% in the last three months because of a steep rise in cement prices, says the National Real Estate Development Council (NAREDCO). The industry body claims that cement manufacturers have increased the price of cement by Rs 100 per bag in the last three months and are also creating an artificial scarcity of cement in the market, leading to project delays. "This will surely have an impact on our costs," says a DLF spokesperson.
Navin Raheja, president of NAREDCO, alleged that cement companies have a formed a cartel and have raised prices saying the cost of one of their main inputs, coal, has gone up. While cement prices have been going up since August, coal prices have only started rising since mid-October. The industry body has now lodged a formal complaint with the Competition Commission of India against cement manufacturers.
Last month, another real estate industry body, Confederation of Real Estate Developers Association of India, had also approached CCI, asking for an enquiry into the artificial shortage of cement and the abnormal price increase by cement manufacturers. "We are yet to get a response from CCI," says Geetambar Anand, vice-president of Credai.
Cement prices have gone up from Rs 180 per bag in August to Rs 280 per bag in October. There is a shortage of cement in the market because of which cement manufacturers are not giving any credit line to developers who are being forced to pay upfront, and in some cases wait for up to 15 days for deliveries of cement bags. "This has thrown our construction schedules awry. At least 50% of time is getting wasted on our construction sites," says Anand, who is the managing director of ATS Infrastructure. The developers, says Raheja, are being forced to import cement from Pakistan and other countries, which is much cheaper today. The landed cost of such import is about Rs 235 per bag.