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.

House buyers flock to Hyderabad

More and more people from other states are investing in real estate in Hyderabad, as property prices have skyrocketed in New Delhi, Gurgaon, Mumbai , Kolkata, Bangalore and Chennai. Despite the realty boom, prices of flats and houses in Hyderabad are lower than in other metropolitan cities. Those who are unable to buy their dream homes in the cities they dwell in, are able to do so in Hyderabad.

A survey by Makaan.com, an online real estate portal, has revealed that many North Indians were acquiring properties in Hyderabad. "Most buyers feel that they can afford to buy flats in Hyderabad," said Mr Aditya Verma, vice president and business head of Makaan.com. "This is true since the cost is between Rs 2,500 to Rs 4,000 per square foot in most localities." In New Delhi, the cost ranges from Rs 4,500 to Rs 8,000 per square feet and in Mumbai, a person would have to spend Rs 65 lakh to purchase a two-bedroom flat since the square feet cost is between Rs 6,500 and Rs 10,500. Even in Bangalore and Chennai, the square feet rate ranges from Rs 4,000 to Rs 9,000. At the same time, a double bedroom flat can be purchased for Rs 30 lakh in Hyderabad.

Makaan.com recently conducted a property show in Hyderabad to cater to the increasing number of buyers. "Over 50 per cent of enquiries in our portal are related to real estate of the city," said Mr Verma. Most people whose children have got jobs in IT, BPO, infrastructure and pharma companies of Hyderabad are also opting to buy flats and houses. "I would like to lead my post retirement life in Hyderabad since I don't have to pay an astronomical sum to buy a flat," said Mr S.S. Agarwal, who works in a textile company of Mumbai. Mr Agarwal regularly attends property shows where you can get all the information about the new real estate ventures. Most people who come from outside the state also prefer to invest in AP Housing Board flats to have clear title deeds and to avoid problems in the future.

More than 400 out of 2,080 flats in the Singapore Township developed by APHB at Pocharam were sold to North Indians. "They will also get good returns even if they want to sell off the properties at a later date," said Mr T.S.V. Ratnam, general manager of Deccan Infrastructure and Land Holdings Limited, a subsidiary of APHB.