No takers for high rise buildings in Hyderabad

Not many builders are willing to construct high-rises in the city though the state government had relaxed many norms including the height restrictions two years ago.

In two years, officials of Greater Hyderabad Municipal Corporation (GHMC) and Hyderabad Urban Development Authority (Huda) have given permissions for 28-floor buildings only in a couple of cases. Of the nearly 100 applications received under multistoreyed buildings category, a majority of them are between 12 floors and 18 floors.

Certain stipulations such as impact fee and mandatory parking area are keeping the builders away.

Competition from low cost and medium-cost builders is another reason for major construction players not taking up high-rise projects.

“The cost of construction increases after the fifth floor as then the government starts to levy an impact fee.

As per government orders, an impact fee of Rs 500 per square metre for any number of floors between 15 feet and 21 feet, Rs 750 per square metre from 21 metre to 30 metres height, Rs 1,500 per square metre for 30 to 50 metres height and Rs 3,000 for above 50 metres height has to be paid,” said a builder.

These are the rates for residential high rises. In case of commercial and IT-parks, the slabs are Rs 1,000, Rs 1,500, Rs 2,500 and Rs 5,000 respectively. These rates would not be acceptable to buyers as a low-cost builder would be selling flats in a four-storeyed building in the vicinity for Rs 2,000 or 2,500 per square feet, where as the cost in a high-rise would be over Rs 5,000 per square feet, he added.

According to the Andhra Pradesh Builders’ Forum president, Mr C. Shekhar Reddy, builders have to earmark 66 per cent of the total project site for parking in case of it being an IT building, 44 per cent per cent parking area for commercial ventures and 33 per cent for residential projects.

“We have not received any applications for buildings of 40 or 50 floors. But we are sure that the builders will queue up after construction of projects such as the 100storeyed tower by Reliance,” said the GHMC additional commissioner, Mr K. Dhanunjaya Reddy.