New airport to improve Hyderabad's brand image

Hyderabad: With the new international airport commencing operations near here, the brand image of Hyderabad is to go up, attracting more investment in IT, biotechnology and other industries.



The swanky Rajiv Gandhi International Airport, which has come up 30 km south of the city, is described as the new icon of this IT hub, home to many software giants.

If Hyderabad IT and Consultancy (Hitec) City at the once sleepy Madhapur village placed Hyderabad on the world IT map in 1990s, the new international airport is expected to transform the city, especially the area off the highway linking Bangalore into a business hub and attract huge investments in various sectors.

Though some air passengers are complaining of the long time they take to reach the new airport (the older airport was in the heart of the city), business leaders feel the state-of-the-art and spacious facility would help Hyderabad become a world-class city.

The Rs 2500 crore airport, on over 5,000 acres of land, became operational Sunday, shifting all the operations from Begumpet airport.

The new airport, with the longest runway in South East Asia and A380 compatible, can handle 12 million passengers a year in the first phase. Its ultimate capacity is 40 million passengers and one million tonnes of cargo per annum.

"With this wonderful facility, Hyderabad can now have air connectivity to all key cities in the world. The city has immense business potential. I am sure many airlines will connect it to the global destinations," Atluri Subba Rao, chairman of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), told IANS.

"Air connectivity is the most crucial aspect for any city to grow as a major business centre. Any businessman keen to invest in a city will look for good air connectivity," he said.

Rao pointed out that the 75-year-old airport at Begumpet had no room for further expansion.

The GMR Hyderabad International Airport Ltd (GHIAL), the developers of India's first greenfield airport in public-private partnership, feel that Hyderabad is well positioned to become a key hub -- like Dubai and Singapore.

Several airlines are waiting to connect Hyderabad. The British Airways is to launch flights from Heathrow from Oct 27. There will be five flights each week on a Boeing 777 aircraft. The Gulf Air, the national carrier of Bahrain, plans daily flights from June.

Emirates and other airlines plan to increase frequency. The developers expect at least 30 per cent increase in frequencies to the Gulf, a key region considering the large number of people from Andhra Pradesh employed there.

The number of passengers is expected to rise from 7 million to 8.4 million passengers in the first year of operations. This would include 2.4 million international passengers.

The growth projections for the first year, however, are conservative considering that the city recorded the highest growth rate of 44 per cent as compared to other metro airports in India.

Presently, 21 airlines (11 international and 10 domestic) serve more than 35 destinations. The airport handles 250 flights a day. By the end of the current fiscal, the number is expected to go up to 300-350 flights.

The airport is also expected to become a cargo hub in Southeast Asia. It is presently handling 45,000 tonnes of cargo every year and the same is expected to go up to 60,000 tonnes by 2009 and to 100,000 tonnes by 2010.

The airport has a world-class cargo terminal and cold chain infrastructure, which will boost cargo operations. DHL has announced that the new airport would be its cargo hub.

"This airport will give further impetus to the development of the city. The business will grow as Hyderabad is known for its IT and biotech industry," said Hyderabad MP Asaduddin Owaisi.

"The brand image of Kuala Lumpur went up after the new international airport was set up there. We can expect a similar situation in Hyderabad," said Kiran K. Grandhi, managing director of GHIAL.

The developers have built a five-star hotel at the airport premises and plan several commercial projects and a railway station.

The real estate prices around the airport have shot up 200 times. An aerial view shows that every inch of the prime land has been measured for the real estate projects.

Work on several mega real estate projects and special economic zones has begun or will start soon. The real estate developers have taken up housing projects catering to airport employees, techies and Non-Resident Indians.

The airport is expected to act as magnet to stimulate new investment around it. FAB City, India's first chip manufacturing facility, is coming up near the airport. This cluster has investment commitments worth $7 million over the next decade.

The mega infrastructure projects like world class Outer Ring Road and Elevated Expressway and the proposed Metro Rail are expected to give further impetus to this development.

Property in newer IT destinations selling briskly

The IT sector in India fuelled the first round of residential real estate boom. Growing salaries, leading to larger disposable incomes and the search for a new lifestyle befitting the new work culture created a boom in the residential real estate sector. But as the products become more and more opulent and expensive, developers are realising that the IT segment leads the boom and contributes to about 30% of sales. But for long-term sustainability, the market cannot outprice itself and expect to survive on premium sales alone. Bangalore, Hyderabad and Gurgaon are facing a slowdown while newer IT destinations such as Kolkata and Chennai are still selling briskly.

Kolkata real estate has witnessed manifold increase in residential capital values in the last couple of years, The areas witnessing maximum volumes of transactions include South Central Kolkata, EM Bypass, Kankurgachi, Phoolbagan, Beliaghata, Garia-Narendrapur in the Southeast, Behala-Joka in the south west, Rajarhat in the northeast, BT Road in the northwest and Howrah in the west, industry sources say. About 30% of this demand is driven by the IT and related sectors.

Rising demand means rising prices. The mid-end residential property segment which was available in a range of Rs 8-15 lakh a year back is now available for Rs 20-25 lakh. The premium budget apartments available in the bracket of Rs 25-35 lakh one year back have gone up to Rs 45-75 lakh.

According to real estate consultant Sandip Sen of Calcutta Skyline, “The middle segment has been hit a little as the remuneration pattern has not been able to match up to the real estate price hike. In Kolkata, the average demand is still in and around Rs 20 lakh but there isn’t enough supply in this segment.” The average size sought after in the middle segment is around 1,000 sq ft for around 18-20 lakh and for the premium segment it is around 1,700-2,500 for Rs 50-70 lakh.

Chennai’s commercial property market has been driven by strong demand from multinational companies, banking and financial sectors, and commercial rental values in the Central Business District (CBD) of Chennai have increased in 12 months. This kind of demand is reflected in the residential sector as well. Properties around the south-west part of the city are likely to witness a northward rally in the next couple of years. The business opportunities created by the modernisation of the airport is another trigger for development of new residential areas.

Real estate prices in Hyderabad cooling off

Hyderabad, March 5 After a dream run of three years, it is time for the real estate prices in Hyderabad to mellow down. Prices, which shot up by up to 300 per cent in most areas, have started cooling off, witnessing very low growth rates or stagnation.

Several factors have contributed to this. While higher interest rates discouraged individual buyers as cost of flats went up by 50 per cent just on this count, steep rise in input costs and stricter rules shooed away the mid-level builders from the scene. This has led to a freeze on construction activity for some time.

Despite these negative factors, the sector shows promise to grow as players with muscle get funds for bigger projects like townships and gated communities. Rajiv Gandhi International Airport, which is going to be commissioned on March 16, and over 40 SEZs coming up in and around the twin cities too would act as trigger for real-estate growth in the next few years.

“Despite the hiccups in the short-term, there is going to be a time both for the development and construction segments,” Mr Y. Kiron, Chief Executive Officer of Suchir India real-estate developers, told Business Line.

Niche products


He felt that demand for niche products such as villas, townships and gated communities would grow.

“At Rs 3,500-4,000 per square feet, a comfortable flat would cost about Rs 90 lakh, excluding taxes and budget for extra fittings. This could prompt people to go in for a villa, which gives them the feeling of owning a home,” he reasons.

Mr Sudhir Reddy, Chairman and Managing Director of infrastructure major IVRCL, said there would always be demand for certain locations.

The biggest challenge, however, is providing an enabling environment to support the new projects that plan to develop millions of square feet, including in some high-rise buildings. “Do we have enough number of skilled plumbers, masons, electricians,” Mr Kiron asked.

“While interest rates on housing loans have eased a bit, large builders from Hyderabad and across India are launching mega projects across Hyderabad. However, prices are not likely to go up significantly as supply is more,” Mr Marutish Varanasi, Director of VRNET Consulting, said.

Mr S.N. Reddy, President of Builders Association of Andhra Pradesh, said there was lull as transactions came to a standstill in several areas.

Property lock-ups


Stating that the boom was artificial and that the prices skyrocketed unreasonably, he said the irrational rise in prices resulted in default of land deals. “Notional hikes in prices have resulted in lock-up of properties, with people deciding to keep their properties in hope of better realisations,” he said.

Mr G. Yoganand, Managing Director of Manjeera Constructions, pointed out that it had become prohibitive for buyers.

“EMI per lakh has gone up to Rs 1,100 from Rs 700-725 a few years ago. As a result, the repayment burden has gone up by 50 per cent upfront. Besides, costs of cement and steel have gone up significantly, making it impossible for buyers,” he said.

Extraneous factors such as NRIs losing confidence in investments in the US and continued encouragement to IT and other sunrise sectors would drive growth, he added.

Hyderabad Real Estate , NRI Properties,Hyderabad Plots for Sale, Rent, Buy

The Georgia Institute of Technology has signed a memorandum of understanding with the state government of Andhra Pradesh to develop two campuses in the state: a 20-acre campus near Hyderabad and a 470-acre campus near Visakhapatnam.

In Mumbai, six-year-old Gauri Karhade goes to a school that is almost 7km from her home. Her mother, Mitali, a classical musician, worries about the child's safety constantly. The commute generally takes up to 35 minutes but on a bad day, it could take as much as an hour.

"If I had a choice, I would send her to a school that is within our residential complex or at least somewhere close by. Then my maid can fetch her back in case of an emergency, as I travel constantly for my music and may not be at home all the time," says Karhade.

In Gurgaon, in the National Capital Region (NCR) around New Delhi, one reason for Jayashree Menon's move to her present home was the proximity to the school that her six-year-old son Nikhil goes to.

"It is a huge relief to me that Nikhil's school is so close by, given that both my husband and I keep erratic hours, and it is only my old mother-in-law who is at home to look after the child. Besides, it is a much better school than the one he would have gone to from our old house," says Menon.

More and more people are making home-buying decisions based on the quality and proximity of their children's educational institutions. And real estate developers and funds are, in turn, wrapping their arms around the business of education. Developers such as Delhi-based Emaar MGF Ltd and Mumbai-based Hindustan Construction Co. Ltd (HCC) have teamed up with different schools for the township projects they have announced.

While Emaar tied up with Singapore-based Raffles Group, HCC has teamed up with the Girl's Day School Trust, UK, for its new hill station project in Lavasa, near Pune. Pune's Magarpatta City has tied up with Vidya Pratishthan to set up the Magarpatta City Public School.

The Baramati-based Vidya Pratishthan is promoted by Sharad Pawar, Union agriculture minister.

Some foreign universities such as Oxford University and the Georgia Institute of Technology in the US are also looking at setting up shop in India. Oxford will develop a range of custom-made and open executive education programmes that will be available at its India centre at Lavasa. A study of companies located in India and elsewhere is under way to begin development of these education programmes, which will first be delivered in early 2010, according to the Lavasa website.

Given the promise of private education, which is more expensive and aspirational than government-funded schools, several real estate players, including funds such as Kotak Realty Fund, are looking at educational infrastructure as a possible investment opportunity.

At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

Kompally is becoming the new real estate hub of Hyderabad

Kompally which had faint sounds of vehicles plying the Nagpur National Highway and muted sirens from the small scale industries, is now reverberating with construction activity.

Kompally, located strategically at a distance of six kilometres from Bowenpally, eight kilometres from Balanagar and 11 kilometres from Paradise circle, Kompally is well connected by means of road transportation. Unlike, the routine traffic jams of the city, the 100-feet wide National Highway and wide enough roads connecting Jeedimetla and Bowenpally, make travelling a pleasure here.

Replete with family dhabas and
entertainment theme parks like Runway 9, city dwellers over the years have been thronging for a leisurely bite and enjoy the drive, and with the launch of Cineplanet, a multiplex last year, the locality is now abuzz with activity almost 24/7, surely signs to spur the interest of developers launch their ventures here.

In a span of three years, real estate activity has taken over this village. If till few years back, people dealt in acres here, now it is in square yards which measure is also showing signs of fast turning scarce. While a square yard on the either sides of the Highway range between Rs.30,000 and Rs.40,000, it fluctuates around Rs.15,000 per sq. yard on the interior roads connecting Jeedimetla and Bowenpally, informs Santosh Kumar, a local land consultant.

Cashing on the real estate boom, real estate developers have come up with different plans to suit the customer needs. While builders like Anusha Developers, Agarwal Constructions commenced apartment blocks, others like Sree Vensai Projects Limited have gated communities on offer with double and triple bedroom flats. Those like Jayabheri Constructions and Ashoka Builders are even offering plots for construction of individual houses on the Jeedimetla Road.

While double bed room flats are constructed with an average built up area of about 1,250 sq ft, triple bedroom flats come with around 2,200 sq ft and the pricing per sq ft range from Rs.2,800 to Rs.3,000 depending upon the builder, project size and amenities offered.

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At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

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At least 200 cos scout for talent at ISB Hyderabad

Graduates of the Indian School of Business (ISB), Hyderabad, are gearing up for their job interviews as the placement season kicks off. Top companies from various sectors are participating in the process to recruit 425 students of 2008 batch at the premier institute.

As many as 200 national and international companies have confirmed campus visits so far this year, and the number is expected to go up by the time placements close by end of March.

An interesting trend this year is that real estate and health care companies, both from India and abroad, are recruiting students for senior roles. The ISB placements are attracting a healthy mix of large business groups as well as niche players across industries