Indian Real Estate Sector

Bade · Post by **Bade** » 10 May 2009 23:16

Raju wrote:can anyone suggest me some low-cost (less than 1000sq ft) flats/housing projects in Palakkad ?

Need an alternate outpost to enjoy dilli-like dry weather in kerala during monsoons.

Why do you want flats in Palakkad where land is the cheapest in all of Kerala, unless you are looking for something in Coimbatore, Palakkad, Kerala.

If you have not visited realkerala dot com yet then look there for some nice estates and farmland.

Raju · Post by **Raju** » 10 May 2009 23:19

true Bade saar .. I was looking in wrong direction. But it was preferable if I could log in somewhere in the town centre while rest of Kerala has monsoons, Palghat has absolutely no rain at all and very little humidity. There are asthmatics in my family who need a dry climate and they feel most comfortable in palghat. After monsoons, I could just lock up the front door and leave.

With a property, it would not be so simple.

Bade · Post by **Bade** » 10 May 2009 23:46

Raju, but dust allergies can be a concern too in dry places for asthmatic people, no? Nothing beats having an a/c with a good filter to keep the particulates out. Lack of 24/7 electricity is what I dread when I am in Kerala on vacations. The best thing of living in massa is widespread availability of a/c cooled homes be it even an apartment on rent.

Bade · Post by **Bade** » 10 May 2009 23:50

Considering the heat, dust and monsoons and non-available 24/7 power in most of Kerala, I am seriously thinking of Ooty as a possible retirement option for the summer months at least.

Raju · Post by **Raju** » 10 May 2009 23:53

Previous experience with Palghat has shown that as soon as we enter Palghat the asthmatics have no issues.

previous year, all the rainfall in Kerala during monsoons hardly affected Palghat where there was hardly any rain at all. So this is tried and tested. Dust in places like Palghat can be very easily controlled.

btw am in the process of acquiring oxygen tanks, dehumidifiers to create moisture free zones. Electricity backup is present in form of 2 KVA and 1500 amp hours of battery backup. Then there is a standby diesel genset. No issues there.

Raju · Post by **Raju** » 10 May 2009 23:54

Ooty and Munnar have high humidity and exotic pollen due to large variation in flora. The safe places are Cumbum and Pollachi in TN. But folks in my family do not want to shift to TN.

vsudhir · Post by **vsudhir** » 29 May 2009 16:39

Affordable housing, but at what cost?

Real estate developers are offering homes within reach of the middle class wallet. But buyers may still feel shortchanged as home sizes get smaller and locations leave a lot to be desired.

rohitvats · Post by **rohitvats** » 29 May 2009 19:57

Two things will have to happen before the houses fall in the affordable bracket. The affordable bracket being defined as 20-35 lakhs and assuming that one is willing to give 40% of the salary as EMI:

a.Land Prices: Thanks the huge activity in Real Estate, the land values have reached stratospherical levels and are unlikely to come down to acceptable levels. The simple reason being the laws of supply & demand do not affect this segment as well as others. Unlike an apartment project where the Capex has already been incurred (land cost, construction cost etc), there is no sunk cost or holding/vacancy cost in case of land. An investor (and now even the builders) need to recover the money and in case of low sales will slash prices to move the inventory. No such issue with Land. The land was bought at peanut prices or has been in family for donkey years and the owner is in no hurry to sell the same unless he is desperate for some reason. He has seen good times and can wait for the next cycle to sell his property. With out the land cost coming down, the prices are unlikely to come down in new projects (where the land has been bought during up cycle). No wonder all the so called low cost and affordable housing is coming up in far off locations

b.Margins: The developers all want to make 60-80% profit and even more on the investment and hence are sticking to their guns. Only some have realized that to move stock they have will have to slash prices (which again are way high). The reason all the developers wanted to get into high end apartment projects was because of the margins. The land and construction cost can only be that much. Here again in the construction cost quoted by them, they build in margins. They charge more than 100% premium over the base construction cost and land price and make huge profit. Unless they are willing to take a cut, nothing is going to move in this market. Some of them have seen light of the day; for others the market will insure they do. Its shape up or ship out

Hitesh · Post by **Hitesh** » 29 May 2009 21:42

Then I think property tax reform is in need. If you have high property tax rate, then the land prices would be low and there would be very little speculation. However it does place a huge burden on the homeowners. So a balance would be needed.

Bade · Post by **Bade** » 29 May 2009 21:50

How would the high tax rate help in a country where land transactions report only less than 30% at the maximum of value paid. Rest 70% is black money only or white money (from salaried middle class) getting converted to black money (held by the developers or previous land owners who become sellers now).

If you increase the sales tax or registration fee, same pattern follows with people under reporting the actual value to reduce the tax burden. In Kerala something even funnier happened. People were flipping land so fast that even the sale did not get registered till the property changed hands many times. So all the intermediate sales were all done in black only from the tax income point of view.

SwamyG · Post by **SwamyG** » 29 May 2009 21:56

Raju wrote:Ooty and Munnar have high humidity and exotic pollen due to large variation in flora. The safe places are Cumbum and Pollachi in TN. But folks in my family do not want to shift to TN.

I have heard tonnes of good talk about Munnar from my family. One of my grand fathers worked at some small college for a few years - I am talking decades and decades back.

W.r.t Hyderabad, have the prices fallen enough there? I want to buy something there....was waiting last year before jumping in.

Sachin · Post by **Sachin** » 29 May 2009 22:12

Bade wrote:In Kerala something even funnier happened. People were flipping land so fast that even the sale did not get registered till the property changed hands many times. So all the intermediate sales were all done in black only from the tax income point of view.

Bade Saar, I guess this trend is now gone out of fashion after a new legislation by the current government under our CM - Com. V.S Achu. There is now a kind of ready table of reference for land prices in various parts of Kerala, with even provisions for deciding rate based on whether the land is a waste land, agricultural land, or land suited for stuff like rubber estates. A penalty clause was also introduced to fine/prosecute registration officials who helped in under-quoting the price or classifying the land as some thing else (than the original). If my understanding is correct, every deal have to now get registered as well.

Earlier the trend was:-
1. X identify a land at certain location. Contacts the owner and fixes a price. Both the owner and Mr.X create a legal document which says that Owner has decided to sell his land at n price to Mr.X. This was NOT registered. The theeru aadharam still remained with owner.
2. X then identify another chap Y and offers the land showing the original sale deed between Owner and the Mr.X. Mr.Y's sole idea was to repeat step #2, so he gets into another contract with Mr.X. The theeru aadharam still remained with owner. And then Mr.Y identifies another bakra and the sale goes on..

Only at the very final stage where some one actually wants the land that the question of theeru aadharam and its transfer comes up...

. IIRC Achu introduced a law which says that even at Step #2 (above) the registration officials have to be informed.

Bade · Post by **Bade** » 29 May 2009 23:38

Sachin, yes what you said is absolutely correct, that is what I learnt this time around from my loyal card carrying family driver. After all we have to admit that the commies also do good things once in a while.

Rahul Mehta · Post by **Rahul Mehta** » 30 May 2009 16:59

Hitesh wrote:Then I think property tax reform is in need. If you have high property tax rate, then the land prices would be low and there would be very little speculation. However it does place a huge burden on the homeowners. So a balance would be needed.

AWMTA

Bade wrote:How would the high tax rate help in a country where land transactions report only less than 30% at the maximum of value paid. Rest 70% is black money only or white money (from salaried middle class) getting converted to black money (held by the developers or previous land owners who become sellers now).

If you increase the sales tax or registration fee, same pattern follows with people under reporting the actual value to reduce the tax burden. In Kerala something even funnier happened. People were flipping land so fast that even the sale did not get registered till the property changed hands many times. So all the intermediate sales were all done in black only from the tax income point of view.

What Hitesh says is imposing a tax of say 1% on the market value of land a person is holding. So whatever may be the purchase price be real or record, he has to pay that every year. With this, those who have acres of non agri land will have to pay tax and so they will start selling and not hoarding. So prices will fall.

Hitesh,

With exemption of 25sqm of land and 50 sqm of construction per person. Also, the exemption on senior citizen can be twice and twice if the couple has only one child etc. So the burden on normal homeowner will be minimal.

Bade · Post by **Bade** » 21 Jun 2009 03:56

Finally someone is talking sense for a change in this sector and it is Jerry Rao. Many of the ideas are what we have said in BR before. So we had a sense of the model.

Jerry Rao, the iconic founder of IT firm Mphasis, is completely immersed into his next business innings: Nano housing. Just like the Nano car, he wants to work backwards from his sub-Rs 7 lakh price point to deliver homes to a varied buyer profile that includes drivers, housemaids, plumbers and electricians. Jerry Rao’s new venture, Value and Budget Housing Development Corporation, is targeting building a million homes in 10 years in 17 cities.

What does the project road map look like?

The company will initially set up two projects in Bangalore. We would then move nationwide. Our project sizes would be in the range of 8-50 acres. Typically, in 20 acres, one can build 2,800 to 3,200 units sized between 300 and 450 sq feet.

Three, if you are looking at land as a capital asset, you would not do it. This model requires a mindset shift. I have no interest in the land price, whereas the entire development of last 30 years has been based on land price appreciation. A developer may be building 60 flats but he will sell only 20 in the initial phase, wait for a year and sell the next 20 at double the price and so on. He is not in a hurry.

No wonder that B'lore builders take 5-7 years to finish each of their projects.

Small housing projects can make big profits: Jerry Rao

vina · Post by **vina** » 21 Jun 2009 08:49

Bade wrote:Finally someone is talking sense for a change in this sector and it is Jerry Rao. Many of the ideas are what we have said in BR before. So we had a sense of the model.
Jerry Rao, the iconic founder of IT firm Mphasis, is completely immersed into his next business innings: Nano housing. Just like the Nano car, he wants to work backwards from his sub-Rs 7 lakh price point to deliver homes to a varied buyer profile that includes drivers, housemaids, plumbers and electricians. Jerry Rao’s new venture, Value and Budget Housing Development Corporation, is targeting building a million homes in 10 years in 17 cities.

What does the project road map look like?

The company will initially set up two projects in Bangalore. We would then move nationwide. Our project sizes would be in the range of 8-50 acres. Typically, in 20 acres, one can build 2,800 to 3,200 units sized between 300 and 450 sq feet.

Three, if you are looking at land as a capital asset, you would not do it. This model requires a mindset shift. I have no interest in the land price, whereas the entire development of last 30 years has been based on land price appreciation. A developer may be building 60 flats but he will sell only 20 in the initial phase, wait for a year and sell the next 20 at double the price and so on. He is not in a hurry.
No wonder that B'lore builders take 5-7 years to finish each of their projects.

Small housing projects can make big profits: Jerry Rao

Yes Bade Saar. Finally a high minded entreprenuer who can think differently and create a new business model. The current shortage driven biz model can be broken only when there is a big super supply of such affordable housing. Only then can the capital "appreciation"/ "speculation" thing can be broken and it becomes not attractive to hold land and drive out the black money.

vina · Post by **vina** » 21 Jun 2009 08:58

SwamyG wrote:W.r.t Hyderabad, have the prices fallen enough there? I want to buy something there....was waiting last year before jumping in.

Stay out of that place like if it is plague infested. Hyderabad has easily the shadiest real estate market . It is a fetid sewer. While in other places, most probably, a property will get sold to one person, in Hyderabad, the same property will get sold to many people (dont ask me how, but it happens).

And if you try recovering/getting your money back, you will end up dead in some canal or some lake or some rubbish heap. I am not joking here. Recently, I spoke with someone who had "invested" in 3 "plots" in Hyderabad and when he recently visited that, he saw, 3 houses standing on his plots. When he phoned and asked his broker about it, he was flatly told, leave Hyderabad before tonight or you will end up dead.

Even in normal times, the business ethics in Hyderabad and Andhra in general is shady to say the least (can you imagine why Ramalinga Raju does not want to take bail and prefers to be in jail, while every two bit criminal with far bigger crimes like murder etc gets bail ? . With his battery of high power lawyers, Ramalinga Raju's bail should be a walk in the park !).

Rather than "invest" in Hyderabad, I would think taking that cash and putting it in the Hundi at Tirupati will serve a better purpose. Atleast you wont end up lining the pocket of crooks and getting cheated in the bargain.

Hyderabad/ Andhra has a serious business ethics problem. I wouldnt touch any Hyderabad based company (including so called very prominent ones based there) with a barge pole.

bala · Post by **bala** » 21 Jun 2009 09:16

Property title ownership is a cesspool of corruption in India, in general. The law is you park your butt on the property to make sure no one usurps it. Even land holding, i.e. empty plots is a murky affair. Your neighbor for instance can create a small dwelling right over the fence and have some goon occupying it and then claim ownership. Actually this happened to a friend of mine. Recently ( a yr or two ago) the Bluru real estate market, turned into a frenzy. Developers started buying up farm lands and created layouts. They sold the layouts to those who needed a plot of land to build houses. Some of them did not realize zoning laws. Worse, the BDA or some govt agency decided to create roads and had them drawn right over these developments since the neigbour with farm lands is powerful and well connected and pulled strings to redraw the road.

With proper Katha/lawyers etc nothing is guaranteed. So, the question is when is India going to get Title deed ownership cleaned up. Maybe allow title insurance companies to operate to guarantee the deed.

Sachin · Post by **Sachin** » 22 Jun 2009 15:44

In Bengaluru a friend of mine lost 2 lakhs (this was in early 2000) when he decided to buy a land in a "lay out". Little did he realise that the area allotted to him was part of the "green belt" marked by the state government. Nobody could build houses there, it was like a forest land/farm land. Here again, the land deal per-se was okay. The owner had rights to sell the land, no disputes on the land also. But the owner conviniently hid the fact that the area was in the "green belt".

Also AFAIK, the agency demarking the land as green belts is totally different from the agency which records property dealings.

BTW there is a Reddy Gent in Bengaluru who duped a bank itself with illegal property

. The bank bought land from him, built up its building there. Only to find the Civil authorities landing up there with bulldozers etc. This I guess happened nearly 5 years back.

Rahul Mehta · Post by **Rahul Mehta** » 22 Jun 2009 17:42

The name on 7/12 is NOT ownership, but merely "occupant" and someone who is paying taxes. There is NO office in India which legally issued ownership certificate for plots and flats !!

bala wrote:Property title ownership is a cesspool of corruption in India, in general. The law is you park your butt on the property to make sure no one usurps it. Even land holding, i.e. empty plots is a murky affair. Your neighbor for instance can create a small dwelling right over the fence and have some goon occupying it and then claim ownership. Actually this happened to a friend of mine. Recently ( a yr or two ago) the Bluru real estate market, turned into a frenzy. Developers started buying up farm lands and created layouts. They sold the layouts to those who needed a plot of land to build houses. Some of them did not realize zoning laws. Worse, the BDA or some govt agency decided to create roads and had them drawn right over these developments since the neigbour with farm lands is powerful and well connected and pulled strings to redraw the road.

With proper Katha/lawyers etc nothing is guaranteed. So, the question is when is India going to get Title deed ownership cleaned up. Maybe allow title insurance companies to operate to guarantee the deed.

The solution is trivial - Torrence System as proposed by Sir Robert Torrence in Australia in 1860.

Here is the draft of legislation or Executive Notification that can bring Torrence System in India and reduce this land record mess

http://rahulmehta.com/id04.htm

---

And "criminals encroaching the land" problem is because most judges, IPS, Ministers are corrupt and have nexuses with such criminals. eg in Ahmedabad, Congress ex-MLA Bhavan Bharwad is a Gold Medalist in land encroachment owes the success to people like Chimanbhai Patel, HCjs, Modi (yes, even though Bhavan Bharwvad is in Congress, Modi treats him like his pet), Home Minister Amit Shah etc. So when Bhavan Bharwad encroaches your land, you can assume that IPS, HomeMin, LCjs and HCjs will support him and not you. The solution to thix criminal-Nbjp nexus is also trivial and I wont repeat it here.

---

Vina, Bala,

The problems you mentioned exist - record keeping poor and land encroaching criminals run amok. So what solutions do you propose?

SwamyG · Post by **SwamyG** » 22 Jun 2009 17:51

I thought a TATA group was also launching nano housing projects around Rs 4L.

Vina: Sometime in the future, I would like settling down in Bangalore, Hyderabad or Madras. So Hyderabad is one of the places where I would want to have some property. I have few in Bangalore and Madras (just a plot here). So diversifying onlee. Hyderabad has been relatively stable compared to the other markets - Bombay, Bangalore, Delhi etc...so I read.

Singha · Post by **Singha** » 23 Jun 2009 06:30

>> Hyderabad has been relatively stable compared to the other markets

I dont think thats true in flat prices atleast? Hyd also apparently had the highest number of fancy villas like casa estebana. take a look:
http://www.thehindubusinessline.com/200 ... 201900.htm

vsudhir · Post by **vsudhir** » 23 Jun 2009 07:35

Buying plots is a strict no-no. Buying flats from reputed builders makes more sense, IMHO. Dass my grand plan anyway.

negi · Post by **negi** » 23 Jun 2009 09:11

^ I would say rather convenient and probably many a times a safer option . Usually people who long for retiring to their native place in a town or even a village they tend to buy a 'bigha' or so of plot so that they can have a decent house as well as a lawn in the front and a small garden and a garage in the backyard.

My mother prefers such a house and she already convinced my father about buying a plot in 'doon' however the issue is it requires a lot of time and planning to build a house as per one's liking in such a case people do tend to buy a 2/3 bedroom flat in a city as an insurance.My dad now is contemplating to buy a flat in Mumbai (I am sure must be mother's idea

).

Btw speaking of plots things to be careful about.

1. If the plot has vegetation (used for plantation or a huge garden) then one will have to make trips to BABUs for getting the approval fo clearing the vegetation else'van vibhag' will harass you.

2. Always.. place a one/two layer brick wall around your plot and take a snap or two to avoid illegal encroachment .

shyam · Post by **shyam** » 23 Jun 2009 10:17

^^^
Why don't people buy old home and construct new one over there?

Somehow I get uncomfortable when people convert arable land into a concrete jungle.

SwamyG · Post by **SwamyG** » 24 Jun 2009 16:14

(I am sure must be mother's idea ).

Remember mata, pita, guru & daivam. As a homemaker, traditionally our women have excelled at decision making and looking after the family's interests - while we men folks, sitting on our easy-chairs, try to mend fences between Afghanistan & Pakistan or prevent the 5th World War.
Some years ago, when I had nothing in my pocket, my mom insisted that either my dad or I buy a flat that came at a discounted price. It was the last flat in the complex so the developer was offering it to us as we knew somebody he knew (yada yada); it was for ~10L in Bangalore - far far outside the city. I decided to buy, and she gave advices on how to get loans from relatives and friends. Very close relatives and friends chipped in small amounts; I repaid them without interest. While I paid the relatives not in the inner circle with interest greater or on par to the prevailing bank rates. When things looked bleak for H1 holders in 2000, there was a comfortable feeling that there was a small nest back home. And by that time, I had paid it off and my retired parents were living there.

I highly recommend listening to our mom's generation Indian women folks. And for current generation women folks - listen on a case to case basis.

vsudhir · Post by **vsudhir** » 25 Jun 2009 08:25

I highly recommend listening to our mom's generation Indian women folks. And for current generation women folks - listen on a case to case basis.

Amen to that.

Like they say, the hand that rocks the cradle....

Rahul Mehta · Post by **Rahul Mehta** » 25 Jun 2009 14:44

shyam wrote:^^^
Why don't people buy old home and construct new one over there?

Somehow I get uncomfortable when people convert arable land into a concrete jungle.

A 2% wealth tax on the mkt value of NA land you own above 25sqm/person (50sqm for senior citizen) will reduce conversion of arable land into NA land.

Haresh · Post by **Haresh** » 30 Jun 2009 20:11

Hello,

Can someone please help me.
My father has passeed away and he has left his property in India to me (as the only son).

How do I go about getting the property transfered to my name ?
I have received so much mixed up advice I am unsure how to proceed.

This is what I have been told:
Option 1:Hire a lawyer in India to deal with our UK lawyer, he will arrange everything in India.
Problem: lawyers in India are corrupt, how can I be sure that the house is not transferred to him or his family or even sold ? There is a Land/Property mafia in punjab that just seizes property.
What do you think????

Option 2: Once probate is granted in the UK, fly to India & have the property transferred in my presence.
I have been advised that I will need the following:
A/ Letter granting probate in the UK
B/ Letter from Solicitor/Affadavit transferring the property to me.
C/Fathers deathe certificate
D/My Passport & birth cerificate

I have been advised to stay clear of Indian lawyers and the legal system.
What is the opinion of members of the board ??
Also as I was actually born in the UK and am a british citizen am I actually an NRI or am I a PIO ?

Any advice would be appreciated.

Rahul Mehta · Post by **Rahul Mehta** » 01 Jul 2009 06:41

Haresh wrote:Hello,

Can someone please help me.
My father has passeed away and he has left his property in India to me (as the only son).

How do I go about getting the property transfered to my name ?
I have received so much mixed up advice I am unsure how to proceed.

This is what I have been told:
Option 1:Hire a lawyer in India to deal with our UK lawyer, he will arrange everything in India.
Problem: lawyers in India are corrupt, how can I be sure that the house is not transferred to him or his family or even sold ? There is a Land/Property mafia in punjab that just seizes property.
What do you think????

Option 2: Once probate is granted in the UK, fly to India & have the property transferred in my presence.
I have been advised that I will need the following:
A/ Letter granting probate in the UK
B/ Letter from Solicitor/Affadavit transferring the property to me.
C/Fathers deathe certificate
D/My Passport & birth cerificate

I have been advised to stay clear of Indian lawyers and the legal system.
What is the opinion of members of the board ??
Also as I was actually born in the UK and am a british citizen am I actually an NRI or am I a PIO ?

Any advice would be appreciated.

Goto India ASAP and sell that land ASAP. Dont wait even one second.

You will be lucky if mafia have not encroached that land by now.

Sorry tp say so. But encroaching land of NRIs is a big business in India. Because NRI cant fight back easily. You are better off as you are British citizenship. Otherwise, GC holder are easy victims.

Haresh · Post by **Haresh** » 01 Jul 2009 16:41

Rahul,

The property is actually the house my father was born in and a mansion he built.
I don't want to sell them as they are my and my childrens link with India.
They are quite safe at the moment as I have enough local contacts to look after them.

I am just concerned with the transfer process.

Regards

Haresh

Rishirishi · Post by **Rishirishi** » 08 Jul 2009 04:06

Bade wrote:Finally someone is talking sense for a change in this sector and it is Jerry Rao. Many of the ideas are what we have said in BR before. So we had a sense of the model.
Jerry Rao, the iconic founder of IT firm Mphasis, is completely immersed into his next business innings: Nano housing. Just like the Nano car, he wants to work backwards from his sub-Rs 7 lakh price point to deliver homes to a varied buyer profile that includes drivers, housemaids, plumbers and electricians. Jerry Rao’s new venture, Value and Budget Housing Development Corporation, is targeting building a million homes in 10 years in 17 cities.

What does the project road map look like?

The company will initially set up two projects in Bangalore. We would then move nationwide. Our project sizes would be in the range of 8-50 acres. Typically, in 20 acres, one can build 2,800 to 3,200 units sized between 300 and 450 sq feet.

Three, if you are looking at land as a capital asset, you would not do it. This model requires a mindset shift. I have no interest in the land price, whereas the entire development of last 30 years has been based on land price appreciation. A developer may be building 60 flats but he will sell only 20 in the initial phase, wait for a year and sell the next 20 at double the price and so on. He is not in a hurry.
No wonder that B'lore builders take 5-7 years to finish each of their projects.

Small housing projects can make big profits: Jerry Rao

Building 2-3000 flats for low income groups and appartments the size of single room can lead to disaster. The place will we over overcrowded. The only way to solve the problem is to build infrastructure in the outskirts, so that more land is made available. The building cost of appartments is typically Rs 1000 per sq ft. Hence it should be possible to get at leat 600sqft appartments at the cost of 7-10 lacks. 60sq ft should be the minimum. 50 for kitchen and 50 for bathroom. Then you can have 2 rooms of 200 sqft each (rest will go away in walls etc). That is the minimum for a family nuclear family of 4.

kumarn · Post by **kumarn** » 11 Jul 2009 22:25

Anyone here has ideas about the property market in Noida? I see no signs of downturn here. Good apartments are still quoting at 5000/sq ft like they were doing 2 years back! Should I wait for some more time, or is it a good time to buy? Any ideas/suggestion would be greatly appreciated.
Thanks in advance

SwamyG · Post by **SwamyG** » 13 Jul 2009 18:11

I have been looking at some properties in Gachibowli area of Hyd/Sbad. I can get a flat for 70L in a high-rise building - Ramky Towers.. Alliance Group has something in Telapur Village area - near Gachibowli in that price range. From an investment perspective, how much growth potential Hyderabad has? If I am putting 70L, I would expect appreciation - but who will & can afford properties 70L+ in the future? In essence who will buy it from me say for 80L (that is just above 10% appreciation - very reasonable in my opinion)? SHQ is hesitant to take huge loans from the banks.

ps: the rates are still @ 3000/ft

kmkraoind · Post by **kmkraoind** » 13 Jul 2009 18:36

SwamyG wrote:I have been looking at some properties in Gachibowli area of Hyd/Sbad. I can get a flat for 70L in a high-rise building - Ramky Towers.. Alliance Group has something in Telapur Village area - near Gachibowli in that price range. From an investment perspective, how much growth potential Hyderabad has? If I am putting 70L, I would expect appreciation - but who will & can afford properties 70L+ in the future? In essence who will buy it from me say for 80L (that is just above 10% appreciation - very reasonable in my opinion)? SHQ is hesitant to take huge loans from the banks.

ps: the rates are still @ 3000/ft

Swamygaru. For your own use, for 30-50L you can get a decent (2-3 bedroom) apartment in Ashok Nagar or Gandhi Nagar (near to RTC X Road), which is 10-15 minutes drive to Secunderabad, Kacheguda, and Nampalli.

kumarn · Post by **kumarn** » 13 Jul 2009 18:55

no dilli-billis here or what? :-(

SwamyG · Post by **SwamyG** » 13 Jul 2009 19:49

kmkraoind: I was thinking between 40L-50L would be a good price range too. Plus I am nervous at the number of high-rise apartment complexes sprouting in G.bowli area. The developers advertise tennis courts, swimming pools ithaydi. If checks out the details, they have 1-3 tennis courts for 1000s of flats. In order to play in those courts, I guess the waiting lists would run to 5-6 years

In the Alliance Group project, they have biometric keyless entry systems - their USP is if kids lose the keys what to do onlee

I am looking at from an investment perspective. Rental income + selling it down the years. After paying off the loans; it will be nice to get few thousand rupees as supplemental income - to buy vegetables

But the areas you mention are so far away from the growth/IT areas. How much rent can I get there?

kmkraoind · Post by **kmkraoind** » 13 Jul 2009 22:08

SwamyG: You can get a rent of 7-15K. Yeah the area is far away from IT hubs. But anyhow wait till next US budgetary cycle. With the amount of borrowing (trillions), tends to market nervous and world wide stock markets will tumble once again as well as confidence of people and you can get a better bargain at that time (expecting 20-30% more depreciation).

suryag · Post by **suryag** » 13 Jul 2009 22:42

IT/Vity folks for say 50lakhs which area in Blore can provide decent upper middle class housing(= no swimming pools, tennis courts, just a small park will do)
SwamyG garu I second the Gandhi nagar idea. It is a nice place but water could be a problem, I personally like Vidya nagar(water problem there too). IMO, from Gandhinagar/Vidyanagar to hitech city the travelling time might be 45 mins but with all this mmts/metro talk you can always board a train at Vidyanagar and reach the hitech city area

pradeepe · Post by **pradeepe** » 13 Jul 2009 22:49

SwamyG, IMO Tellapur has potential but it will take a while to build up. The projects there including Aparnas will take a while. If you dont mind a wait (9mo to a year IMO) then Aparna has a current offer for 2790/sft - most of their apts are ~1850sft.

Mantri just started a new venture near Gbolwi right in the financial dist corridor. Current offering supposedly is at 2500/sft. Might want to check it out.

Most of the decent builders have not moved below 3300/sft in Hyd, atleast in the happening part of the city.