By Sreenivasa Rao Dasari: In the News Real happenings in the realty world The renewed buying appetite from domestic consumers and fresh demand from NRIs are pushing consumption for small ventures in the local market in the absence of major projects The real estate market is witnessing an entirely new phenomenon in Andhra Pradesh as the business dynamics are rapidly transforming on short-term basis in this segment which yields to long-term parameters precisely. The steep fall in rupee value against the US dollar and currencies of Gulf countries coupled with the rock-bottom prices in Hyderabad is really pushing demand northwards in an otherwise sluggish market hit by a gamut of adverse factors such as political uncertainty, GO:45, sand crisis, cost of finance, etc.The GO:45, which stipulates earmarking 20 per cent for economically weaker sections (EWS) in projects sprawling over one acre land space, has literally stalled all the new major ventures in the State. This was followed by another crisis in form of sand crisis that halted the construction activity across the State. These two factors almost ruined the construction season this year. As a result, the accumulated surplus space over the last three years is being consumed and exhausted mostly.Perfect Pincode, a real estate solutions company, says new projects, but smaller ones are coming up. It started three months ago. Many builders of new projects like Aparna Builders are offering fair price. Three years back, land prices were low, according to its study. Ravi Verma, Business Head at Perfect Pincode, told, “The number of new approvals so far is running over 100. I expect 400 new projects mostly small ones including G+5 structures will hit the market this year. For instance, Aparna Constructions alone is launching three to four new projects. Most of the new projects will be in B and C categories with prices in the Rs 30-35 lakh bracket. New projects are coming up as we see 10-15 new projects in the market recently.” In addition to small ventures, developers are preferring to construct villas as the demand is outnumbering the supply. The price range is another carrot for buyers. There’s clear demand for villas as there’s shortage in the Hyderabad property market.“Hyderabad is a villa market in the country as 30 per cent of the new projects are villa ventures. The demand for villas is more in Hyderabad than in any other metro. The price range of villas starts from Rs 1 crore and Rs 1.25 crore bracket is witnessing high demand as NRI families prefer to own them for accommodating their parents,” added Verma. Andhra Pradesh Realtors Association (Apra) says the market is good as the demand is picking up, but no major ventures under the progress. “GO:45 has badly hit the real estate market. Generally, south Indians prefer independent houses and gated community ventures. Particularly, Hyderabadis are passionate for villas,” said Raj Padmanabhan, Vice-President, APRA. The Confederation of Real Estate Developers’ Associations of India (CREDAI) terms the present scenario as now or never as the real estate prices are at rock-bottom when compared with other metros and tier-2 cities in the country. C Shekhar Reddy, President, Andhra Pradesh chapter of CREDAI, said, “We are expecting the government’s decision on GO:45 anytime as Legal Department completed its task and sent it to the Chief Ministers’ Office. Once this is cleared, many new major projects will start flowing into the market. There was no major project launched during last 20 months. In the meantime, the rupee fall and affordable prices have created renewed buying interest in the AP market, particularly Hyderabad, which is offering a whopping 40 per cent discount against the prices in the boom time. The real estate market prices fell 20 per cent and an equal percentage of fall in rupee value are the main triggers for the renewed buying in the market. But, there are no major ventures because of GO: 45. Hence, the developers of small projects on less than one acre land piece are calling the shots in the market. Another important observation is that Hyderabad is witnessing real estate activity around it regardless of north or west priorities.” Still people are scared for making investment decision in the real estate considering the present uncertain conditions in the State. “However, the buying demand is picking up for residential purpose. We provide real estate consultancy services for seven projects we tied up with. About 70 developers approached us for tie up. After studying the all aspects pertaining to land, venture, builder, location, legality, etc, we enter into tie up developers. The first time buyers are dominating the present realty market. So, our customers need not worry about other aspects except to choose the property as per their priority. The real estate market last year started recovering. It’s better giving hope to go further up this year. We see 20-25 per cent of recovery in prices this year,” adds Verma. Many investors including NRIs are entering into buying deals mostly in the pre-launch offers. If the market doesn’t pick up by the time projects are ready to occupy, what will happen. This will be detrimental to the investors, but it doesn’t matter for consumers with objective of residential purpose. “Now, we observe that the gap between pre-launch and ready-to-occupy is turning attractive for investors as this will give good returns to them. Generally, investors purchase in pre-launch offers and will cash in on margins when they exit in ready-to-occupy stage. During this time, the consumption should rise up, otherwise, the market will slow down again. If investors, who entered in pre-launch stage, get good opportunities to exit in the stage of ready to launch, then it will be an investor-market like New Delhi,” opines Verma. Source: The Hans India
Saturday, 22 September 2012
Small projects make big businesses
By Sreenivasa Rao Dasari: In the News Real happenings in the realty world The renewed buying appetite from domestic consumers and fresh demand from NRIs are pushing consumption for small ventures in the local market in the absence of major projects The real estate market is witnessing an entirely new phenomenon in Andhra Pradesh as the business dynamics are rapidly transforming on short-term basis in this segment which yields to long-term parameters precisely. The steep fall in rupee value against the US dollar and currencies of Gulf countries coupled with the rock-bottom prices in Hyderabad is really pushing demand northwards in an otherwise sluggish market hit by a gamut of adverse factors such as political uncertainty, GO:45, sand crisis, cost of finance, etc.The GO:45, which stipulates earmarking 20 per cent for economically weaker sections (EWS) in projects sprawling over one acre land space, has literally stalled all the new major ventures in the State. This was followed by another crisis in form of sand crisis that halted the construction activity across the State. These two factors almost ruined the construction season this year. As a result, the accumulated surplus space over the last three years is being consumed and exhausted mostly.Perfect Pincode, a real estate solutions company, says new projects, but smaller ones are coming up. It started three months ago. Many builders of new projects like Aparna Builders are offering fair price. Three years back, land prices were low, according to its study. Ravi Verma, Business Head at Perfect Pincode, told, “The number of new approvals so far is running over 100. I expect 400 new projects mostly small ones including G+5 structures will hit the market this year. For instance, Aparna Constructions alone is launching three to four new projects. Most of the new projects will be in B and C categories with prices in the Rs 30-35 lakh bracket. New projects are coming up as we see 10-15 new projects in the market recently.” In addition to small ventures, developers are preferring to construct villas as the demand is outnumbering the supply. The price range is another carrot for buyers. There’s clear demand for villas as there’s shortage in the Hyderabad property market.“Hyderabad is a villa market in the country as 30 per cent of the new projects are villa ventures. The demand for villas is more in Hyderabad than in any other metro. The price range of villas starts from Rs 1 crore and Rs 1.25 crore bracket is witnessing high demand as NRI families prefer to own them for accommodating their parents,” added Verma. Andhra Pradesh Realtors Association (Apra) says the market is good as the demand is picking up, but no major ventures under the progress. “GO:45 has badly hit the real estate market. Generally, south Indians prefer independent houses and gated community ventures. Particularly, Hyderabadis are passionate for villas,” said Raj Padmanabhan, Vice-President, APRA. The Confederation of Real Estate Developers’ Associations of India (CREDAI) terms the present scenario as now or never as the real estate prices are at rock-bottom when compared with other metros and tier-2 cities in the country. C Shekhar Reddy, President, Andhra Pradesh chapter of CREDAI, said, “We are expecting the government’s decision on GO:45 anytime as Legal Department completed its task and sent it to the Chief Ministers’ Office. Once this is cleared, many new major projects will start flowing into the market. There was no major project launched during last 20 months. In the meantime, the rupee fall and affordable prices have created renewed buying interest in the AP market, particularly Hyderabad, which is offering a whopping 40 per cent discount against the prices in the boom time. The real estate market prices fell 20 per cent and an equal percentage of fall in rupee value are the main triggers for the renewed buying in the market. But, there are no major ventures because of GO: 45. Hence, the developers of small projects on less than one acre land piece are calling the shots in the market. Another important observation is that Hyderabad is witnessing real estate activity around it regardless of north or west priorities.” Still people are scared for making investment decision in the real estate considering the present uncertain conditions in the State. “However, the buying demand is picking up for residential purpose. We provide real estate consultancy services for seven projects we tied up with. About 70 developers approached us for tie up. After studying the all aspects pertaining to land, venture, builder, location, legality, etc, we enter into tie up developers. The first time buyers are dominating the present realty market. So, our customers need not worry about other aspects except to choose the property as per their priority. The real estate market last year started recovering. It’s better giving hope to go further up this year. We see 20-25 per cent of recovery in prices this year,” adds Verma. Many investors including NRIs are entering into buying deals mostly in the pre-launch offers. If the market doesn’t pick up by the time projects are ready to occupy, what will happen. This will be detrimental to the investors, but it doesn’t matter for consumers with objective of residential purpose. “Now, we observe that the gap between pre-launch and ready-to-occupy is turning attractive for investors as this will give good returns to them. Generally, investors purchase in pre-launch offers and will cash in on margins when they exit in ready-to-occupy stage. During this time, the consumption should rise up, otherwise, the market will slow down again. If investors, who entered in pre-launch stage, get good opportunities to exit in the stage of ready to launch, then it will be an investor-market like New Delhi,” opines Verma. Source: The Hans India
