After the slowdown in demand for residences, developers and international property consultants have realised that 'integrated townships' are the next trend across the country. Many realty majors are focusing on the development of integrated townships. Even as DLF Ltd is planning to develop 4,840-unit ‘Dankuni’ township in Kolkata, the Housing Infrastructure Development Corporation (HIDCO) is developing 9,334-unit 'Rajarhat' township in the periphery of Kolkata. Emaar Group is planning to develop 520-unit 'Boulder Hills' township in Hyderabad. Parsvanath also is planning to develop 2,500-unit township in Chennai. This is according to a recent market overview done by Jones Lang LaSalle Meghraj.

Real Estate industry is talking on correction period all over India. Brokers, especially, are absolutely convinced that the market is set to fall. In many areas the property rates have already started falling. Accordingly, Goregaon, Malad, Mira Road, Vasai and Virar on western suburbs and Mulund, Bhandup, Kurla, Chembur and Govandi on central side have started stagnating the level of property prices.

Pune, Nashik, Noida, Jaipur, Bangalore, Chennai and Hyderabad are also feeling the cold wave in the property market. Reason for the same is related with hike in housing finance interest rates and unaffordable property rates.

Investors are, now, not buying and have stopped going in for more investments. Commercial stock is in the market for anything above the cost of investment. Practically, when no one buys, rates are stagnated at some particular point. That is what is happening today. The sale price has stopped further climbing up since there are no takers. Malls are worst hit. The recession started with them, while the exhibiting rates were much less then the actual investments made. Cash and Cheque portion of mall space deals are known to everyone in the trade. The market for commercial properties has already been started to correct its baseless pricing.

It may be a recess. For the time being, investors want market to show its actual colour. And after they sell off certain non moving stock, buying spree may start again afresh. It is also linked with the liquidity crunch in the economy and falling stock exchanges in the country. A lobby of investors does not want share market money to go easily from the real estate market. People who have invested in real estate from earning of share market wants an exit to pay off the liabilities created by them in the share market. Player in real estate market wants the rates to stop climbing up for some time so that they can capitalize on such panic sale. Big game plan is on the hands of few groups of individuals and few finance companies that have entered recently in the trade.

Builders, today, have already started to reduce its price everywhere in the country. Ready stock is still not available as the builders have already sold 30 to 50 % of his stock during under construction to investors. As the Investors want handsome returns on the finished stock while they do not sale in the open market but through the builder only. That stock again sold by the builders to the actual buyers by mounting another profit margin. Hence when the actual user buys the property, he has to pay investor´s hidden margins which change hands five times during the time of construction.

It is nothing but a recess for the players. The rates may go up by the second quarter of the next year 2009. Builders have holding capacity since the project is financed by venture fund people and Mutual funds are searching for the projects. The sale price will be certainly include the interest rates or Return on investment money (22% to 25% of total project). Land and FSI cost is higher and purchasing is already finished for the second rally of property market boom.

As in current market, liquidity has reduced and the funding by the PE firms or Mutual funds has mostly stopped and hence, the construction & launching of the project has just held up or been delayed by one to two quarters some time a year as well.

So in view of current market scenario, we can easily understand that the Real Estate market has effected very much with the recession of Economy.

The enormous 30-residential project by Aliens Group in Hyderabad has been approved by the Hyderabad Urban Development Authority. The residential complex, christened Aliens Space Station 1, is coming up on more than 18.5 acres of land with nearly 80% of the remaining area being developed as landscaped greens. Expected to go up to a height of 87 meters, this residential development will house 2,205 apartments including duplexes and penthouses. The highlights of the project are its home automation features such as biometric security access systems, touch pad switches with lift buttons inside home, Wi-Fi connectivity, shopping mall, multiplex theatre and entertainment facilities.

Currently, there are 40 IT SEZs in Hyderabad and it hopes to reach US$7 billion mark with a prospective growth of 50 per cent during the current financial year. An estimated 60-70 million sq. ft of IT/ITeS specific commercial office space is expected to come up through special economic zones alone by 2010 in India. And out of the seven cities where such zones are coming up, Hyderabad leads with about 30 per cent of the total expected supply of real estate, closely followed by Pune, Bangalore and Chennai.

Hyderabad-based real estate developer, PBEL India is planning to build a township, PBEL City, in the city at a cost of Rs 1,200 crore. The township will comprise of 13 residential and two commercial towers. PBEL City, a joint venture between PBC and Electra Real Estate, both from Israel, and Incor from India, is projected to come up in Rajendranagar on the outskirts of Hyderabad. The company has spent about Rs 200 crore on the project for purchasing the land and creating infrastructure. PBEL India will raise funds from internal sources and through banks.

Real estate developers, the Salarpuria Group is planning to invest about Rs 3,000 crore in 12-14 projects across the country. These projects will be a mix of residential, commercial, retail and hospitality located in Bangalore, Hyderabad, Pune, Kochi, Jaipur, Kolkata and Visakhapatnam. About 13 million sq ft are under construction currently, said Mr Mahesh Khaitan, Director, Salarpuria Group.

Bangalore-based developer, Purvankara Projects has announced its foray into the affordable segment in an effort to beat the property sector slump. The company will launch these projects in two phases. In the first phase, they will develop projects in Bangalore, Chennai, Hyderabad, Coimbatore and Mysore with an investment of Rs 8, 000 crore. Purvankara will develop 64,500 homes with a total built-up area of 59.80 million sq ft in the next five years. These apartments are priced at Rs 10 lakh, Rs 15 lakh and Rs 20 lakh for one, two and three bedrooms respectively.

The Andhra Pradesh Government is looking for an international partner to design and develop an 800 acre integrated township at Kadapa district in the state. The integrated tourism and township project will be developed by the Andhra Pradesh Tourism Development Corporation (APTDC) under the public private partnership (PPP) mode. The company will be expected to design, finance and construct the integrated township. Besides this, the other responsibilities of the partner would be to operate, manage and maintain the proposed project, the APTDC said. The proposed township will be developed around Gandikota, on the banks of Penna river, situated amidst Gandikota Fort and would be within 350 km of important south Indian cities such as Hyderabad, Chennai and Bengaluru.

Worried that property prices may cool down? With India tipped to become the most sought after real estate market among emerging economies, you may not really have to fasten your safety belts just yet. In fact, just 10 land deals in India over the past 12 months were valued at over a whopping Rs 15,000 cr. Evidence enough to prove that reports citing office rentals in Delhi and Mumbai being costlier than more developed real estate markets such as New York City, Dubai and Singapore, are not off the mark. Although Delhi and Mumbai still held on to seven out of top 10 mega realty deals in the country, Hyderabad and Chennai too emerged as hotspots for big ticket transactions. With an acute shortage of land in metro cities and escalating land costs, it will not be long before other locations such as Hyderabad, Chennai, Bangalore, Coimbatore and Pune will grow as centres of major land deals in the near future. Real Estate Investing has probably made more millionaires than any other industry in Hyderabad. Real Estate Investing also offers many rewards including cash flow, security, long-term wealth and numerous tax benefits.

Marking the biggest and first of its kind tie-up in the private sector, Real Estate major K Raheja Corp is working with former US president Bill Clinton-led Clinton Climate Initiative (CCI) to retrofit their buildings across the country to cut greenhouse gases. Work has started in Mumbai and Hyderabad, and according to the company, 50 lakh square feet of built space (in over 20-odd buildings) will be retrofitted. For the process, smarter glass varieties (which let in light, not heat) and better suited air-conditioning systems are used. Sewage treatment is also done to conserve and recycle water. While some government buildings have been retrofitted for cutting carbon emissions, the concept is still picking up in the private sector.

Peninsula Land Ltd, the Ashok Piramal-backed real estate company, is diversifying into integrated townships and information technology parks in Pune, Nashik and Hyderabad. It also plans to enter Ahmedabad, Chennai, Mysore, Bangalore and Coimbatore by next year. Peninsula is developing five projects, which includes one residential and one township project in Nashik, and integrated townships and IT Parks in Pune and Hyderabad. The company is taking a very risky decision by putting up five huge projects during the same time, because looking at the present conditions it is unsure whether it will be able to sell the residential units. Secondly, these are IT Parks not special economic zones where IT companies would rarely tread as the tax benefit scheme will get over by March 2009 even before the project is ready.

Emaar MGF Land Ltd, one of India's leading real estate developer, announced the launch of ‘Boulder Hills Golf and Country Club', its signature master planned integrated world class Leisure and Residential Community in Hyderabad. The launch of this project with a capital outlay of US $ 1.4 billion (Rs 5,610 crores), is the first amongst a significant cache of EmaarMGF projects in South India. This launch marks the roll out of Emaar MGF‘s ambitious project plans spanning residential, commercial & retail, IT parks & SEZs, and hospitality sectors over the next few years at ten locations across South India. Boulder Hills is replete with an 18-hole championship golf course, luxury residences, large format retail facility, luxury and boutique hotels and an IT Park. The project will be constructed by Multiplex Construction India Pvt Ltd., an equal partnership joint venture construction company between Emaar MGF and Multiplex Ltd.

Real estate firm Emaar MGF Land, the Indian joint venture of Dubai's Emaar Properties EMAR.DU plans to spend $3 billion in developing properties in south India over the next few years. Besides a residential property in Hyderabad with an outlay of $1.4 billion, Emaar MGF will invest in commercial and retail properties and hotels spread over 31 million sq ft in 10 south Indian locations. Emaar MGF in February called off a $1.6 billion initial public offering because of tepid investor interest.

The Hyderabad Urban Development Authority (Huda) is investing about Rs 6,000 crore for an eight-lane access-controlled expressway. Part of the Outer Ring Road (ORR) project, it would be taken up in three phases. Five agencies are working on this project on a build, operate and transfer basis. This is likely to be ready by 2010. The government would take financial assistance from the Japan Bank for International Cooperation (JBIC) and would soon call for tenders for the project. Also 33 radial roads would be laid at a cost of Rs 3,000-4,000 crore in Andhra Pradesh for better connectivity to the city. Work on four radial roads has already begun. Huda has also identified land for setting up the digital entertainment city and will soon form a special purpose vehicle for the purpose. It is also planning a health city with participation from global players. The government is also intent on developing townships along the Outer Ring Road. With all these developments taking place in the city, it seems Hyderabad will leave all the other cities in the race.

Ayala Corporation of Philippines and its affiliate, Arch Capital Management, plan to invest $100 million in the Indian property market in the next two years. Ayala being one of the largest real estate brands in Philippines and the private equity fund is currently evaluating property in Hyderabad, Chennai, Bangalore, Mumbai, Pune and the national capital region. Though they are majorly eyeing on the smaller cities due to there being more scope and room of development .Also residential projects are on top of the priority list of Arch Capital Management. The fund is also considering investing in retail and IT projects. It recently closed its first deal in India last month with Mahindra Lifespace Developers. They will develop a residential township in Chennai, a project in which it holds a 49 per cent stake.

Red Fort Capital, an international private equity fund, is planning to invest Rs 3,500 crore in the country’s real estate sector during the next one year. The money will be invested in real estate projects — commercial, residential and retail — as well as land acquisitions. It has also launched a domestic fund few weeks back through which it plans to raise Rs 1,000 crore. The proceeds would be deployed into non-foreign direct investment projects. Construction has begun for Prestige’s project in Bangalore, Indu project in Hyderabad, Chennai and NCR, Delhi. The company is looking at property investments in about 15 other cities that have high income and employment growth and cheaper land. The company will target the middle income groups, earning between Rs 6 lakh and Rs 11 lakh per annum. Red Fort will develop the low-cost houses in partnership with the Bangalore-based Prestige Group and Hyderabad-based Indu Project and will have around 40-80 per cent stake in the projects. Red Fort is in the final stages of discussion for investing in budget hotel chains. It plans to capitalize on its existing land bank of over 1,000 acres pan India. It has land in North Mumbai, Kolkata, Pune, Chennai, Hyderabad and Delhi.

After growing at a fast and furious pace over the past few years, the Real estate sector in southern India is cooling down. This has been caused mainly by a slowdown of the IT sector that impacts the region in more ways than one. Besides, rising home loan interest rates, climbing input rates and a general consumer reaction to the escalating cost of properties have begun to take a toll on realty in this part of the country. Plus there has been an oversupply of highly priced properties, creating some sort of a glut. Further, the builders’ community has been affected by the tightening of the credit norms as well as the negative sentiments in the money and stock markets. This downturn, however, is lending a long-overdue rationality to the market. Only the professionally well-organised and coporatised builders will be able to move on. Reading the ominous portents, builders are also diversifying into hotels, spas, hospitals, warehouses, SEZs and other segments, to escape the dependence on the cyclical residential real estate sector. The ripple of the downturn has touched almost all southern cities. But, there’s an upside of this downturn. The most beneficial outcome of all this might be that it will force builders and developers to cater to demands in the sub-Rs 35 lakh and lower affordable housing category, for which there exist crying need and a huge pent-up demand.

Hyderabad real estate is heating up. First it was the new international airport in Shamshabad earlier this year. And now country’s second largest realty firm, Unitech has invested Rs 9000 crore for two projects it will be developing over a time span of 8 years in Hyderabad. With all these recent developments taking place in Hyderabad it seems it will soon take over the metros like Delhi,Mumbai in the realty business.

Built at a whopping cost of Rs 2,500 crore, the new International Airport will place Hyderabad in the league as Hong Kong, Singapore, and Kuala Lumpur. Spread across 5,000 acres of land, the airport sports the longest runway in South East Asia and is definitely the first truly world-class airport that India can boast of. The high-capacity airport will make Hyderabad a major cargo hub in Asia.
The real estate markets of Hyderabad are expected to take cue from this remarkable development. Prices of commercial and residential properties in Shamshabad, where the new airport is situated, started to escalate way back from 2003-04, when GMR Limited was given the contract of developing the airport. The ‘aerotropolis’ concept further facilitates hotels, healthcare centre’s, residential campuses, and retail outlets right inside the airport zone - a concept currently operational only in top cities like Seoul, Munich and Hong Kong.
The brand image of Hyderabad is witnessing a major makeover.