Planning To Invest In Hyderabad In 2017? Some major localities to invest in Hyderabad

The City of Nizams, Hyderabad, has welcomed the many policy decisions taken by the Centre that had an impact on the real estate markets. The capital of new state Telangana, is riding high on real estate as Builders and developers in Hyderabad have taken the latest developments in their stride. Though many don't feel affected by the recent demonetisation drive, the real estate market here has no doubt slowed, but it has definitely not been written off. The slowdown has made investors and end buyers a bit wary about whether or not to invest in real estate.

Looking at long-term goals, according to a report released by the Directorate of Economics and Statistics of the State government, the state of Telangana is among the six major industrial states in India with Hyderabad being the fastest emerging IT hub of the country. Also known as Cyberabad, it has recently seen an increase in the rentals for the commercial spaces as well increase in the purchase of the residential property in Hyderabad as well. Moreover, the rentals of the residential properties have also seen a considerable increase. The city has a large concentration of IT-based industries, due to which there is a huge demand of residential apartments close to the localities having best of infrastructure and the facilities.

Going by the demand, the best sectors to invest in Hyderabad is buying and renting properties. Of this, the two major localities to invest in Hyderabad are Gachibowli and Manikonda. The major jump in the rental sector has been the result of the setup of the office out of home campus of corporate giants like, Google, Apple, Infosys, etc.

Gachibowli in Hyderabad is one of the fast-growing localities. The locality has become a hot spot for the real estate development. The proximity of Gachibowli to the new international airport; rapidly increasing IT base; and the growing infrastructure has made it one of the most-sought after localities for residential real estate in hyderabad among the IT professionals who want to live close to their workplaces. The price of the properties in Gachibowli, which mostly houses 3BHK apartments and is followed by 2BHK apartments, ranges between Rs 40 lakh-Rs 60 lakh. The consumers, however, prefer 2BHK apartments, even if they are costly. If we go by the demand, the end-users are more interested in buying or renting 3BHK apartments, closely followed by 2BHK houses.

Manikonda, also on par with Gachibowli, is not far behind with regard to the growing real estate demand. Manikonda is for the buyers who are looking for a property and are on a budget. Manikonda like Gachibowli has seen a boom in the IT sector. It has come up as one of the leading localities with high-rise residential projects, software company headquarters. It is a posh locality with the presence of many noteworthy commercial developments. It consists of major commercial players like Reliance, Brand Factory, etc. Manikonda is also connected via Metro rail and state bus service.

Buy a Flat in Hyderabad by paying an Emi as low as Rs 6,000

The federal government has been accommodative of the concerns of the realty sector and met the industrys long pending demand to accord infra-status to affordable homes in hyderabad .

Relaxation on long term capital gains, joint development agreements, tax rebates for builders in hyderabad on unsold stocks would provide a large relief to the actual estate sector, that will be facing a multi-year slowdown, developers and consultants said.

Developers would enter into affordable home projects in Hyderabad with the change in the eligibility norm to carpet area from built up area along with clarity on applicability of 30 sq meter and 60 sq meter criteria.

Realty major DLF CEO Rajeev Talwar said: “It is great and balanced Budget. For housing it is definitely an unprecedented Budget. Infrastructure status to affordable housing will mean cheaper cost of funding and lower tax to developers.

Emaar India CEO Mr Sanjay Malhotra said affordable housing segment getting the Infrastructure status alongside increased allocations under NHB and PMAY-Gramin would enable larger funding offered to home buyers and developers at a less expensive and also make the sector eligible for various incentives.

The Budget provides a big boost to the affordable housing but missed on giving any additional income tax incentives to first-time home buyers or providing higher tax savings on housing loans and house insurance premiums.

Greater Hyderabad Municipal Corporation has spent only Rs 2,038 crore of its total budget of Rs 5,600 crore

The city corporation has spent only 36% of its budget of Rs 5,600 crore for the season, and hasn't taken up a number of key projects for road improvement, rejuvenation of lakes and the strengthening of infrastructure.

With just three months to choose the conclusion of the financial year, it appears likely that the government's plans to turn Hyderabad right into a'Global City'will remain only on paper.

Sources said the Greater Hyderabad Municipal Corporation (GHMC) has spent only Rs 2,038 crore of its total budget of Rs 5,600 crore till January 1, 2017.

Less than 20% of the funds allocated for major infrastructure projects have already been used. While Rs 3,630 crore was earmarked for capital expenditure -used for construction of bridges, road and large projects -civic authorities have spent only Rs 512 crore.

For instance, under Smart Hyderabad initiative, the corporation proposed e-citizen services, free wi-fi, an intelligent Hyderabad property project, and a secure city project at a high price of Rs 46.15 crore.But the corporation hasn't spent any funds on these proposals. Underneath the  Residential Project in Hyderabad -Green Hyderabad project, Telanangaku Haritha Haram and Lakes Rejuvenation, Protection and Beautification were proposed. Of the Rs 235 crore allotted, the civic body has spent just `20 crore.Another big initiative, the Musi Rejuvenation project, was allocated Rs 21 crore but work is yet to begin.

The corporation engineering wing proposed road works at a high price of Rs 860 crore. Only Rs 170 crore has been spent. In contrast, a year ago the civic body spent Rs 424 crore during exactly the same period. The case is comparable with storm water drains improvement -of the proposed Rs 257 crore, only Rs 39 crore was released.

“The state government pushed GHMC right into a debt trap with additional burdens such as for instance providing financial assistance of ` 337 crore to Telangana State Road Transport Corporation.The government hasn't released grants like entertainment tax and property tax for government luxurty properties in Hyderabad ,“ said M Srinivas, secretary of CPM city unit. Srinivas, who procured the important points via an RTI application, said the government promised Rs 378 crore to the corporation in 2015-16, but released Rs 11 crore. In 2016-17, their state government earmarked Rs 70 crore, but hasn't released any funds.

GHMC commissioner B Janardhan Reddy admitted that the expenditure on major works was low as many projects required interdepartmental support like shifting of sewer and power lines. He explained road work usually begins in November and December and is completed before the conclusion of the financial year. On financial support from the Centre, he said GHMC is expecting about Rs 95 crore underneath the 14th finance commission.