CLARIFICATION TO USER QUERIES.HYDERABAD REALESTATE.
We are happy to present here answers to general queries raised by Members. All queries would be individually replied. We will not be able to answer queries regarding Title, Legality, Survey number etc at all. Only selected questions would be posted here.
Our thrust is on upcoming developments, future potential etc. Please do note that we can not comment on Projects other than that are Recommended. However based on location of a Project, we may give general comments on growth potential. Contact mail@exclventures.com
Please do not take it otherwise... BUT the location where you landed up buying, is absolutely Poor. (must have been tricked in, possibly by a relative or friend..that is the most common cause)
There are no takers for plot even at Nagaram 1.5Km from ORR. Mansanapalli X road is further down into wilderness.
Please do not believe that Govt. will build any wide road, unless there is pressing necessity. Govt's priority is to get votes and unfortunately there are hardly couple of thousand votes, in several sq Km behind Airport! Govt also builds or widens road after there is unbearable crisis, due to increased traffic. Imagine when such traffic could happen near your location!
The developers have just been fooling people. The roads indicated in Master Plan, are for future..may be after 50/ 100 years????
Roads get widened slowly from 15 feet....20 feet, 25 feet...as population increase. Even in the heart of Guchibowli. .financial Dt , with heavy traffic and almost 35000 people working , roads are widened when traffic botteneck becomes unbearable. There were no 150 feet or even 80 feet roads!
It does not look feasible for anyone to get a buyer, for plot in such an area, for another 5 years....or more. So question of re-investment do not arise. Always, its better to invest in areas with less usable land around and more empolyment/ population
We do not wish to comment on specific projects at all, except if there is any known published warning by HUDA which we are aware of. We have no such information on the project. However, if you plan to buy a residential plot and not just a farm plot for the heck of it, you need to check following:
1. Find the Village name in which the project is situated. Then check whether the village name is in GO111 (see Q&A). If its there in the list, you can rest assured, that the project will NOT get residential permission.
2. If its not in GO111, then you need to ask a relative, to check physical access and also see how many competing ventures are there, before it and then decide whether its worth going deep.
3. If access is fine and the competing plots are few, then you need to check whether the land is really residential by checking with HUDA office regarding Land Use status of the specific survey numbers and seek their opinion. (The officers are friendly and this can be checked by walking into HUDA office and checking with Town Planning Officer for the specific locality. By paying a fee you can get a written Land Use Certificate too.) Parallely, check with developer whether he has applied for conversion to residential and if so when he is likely to receive approval and any proof of such application including payment of fees. If all this is fine, then verify ownership of land, by own evaluation or take legal help.
4. If you are looking for Farm plots, nothing really matters as long as the developer actually owns the land, since anyway you will be buying since you just like to buy a piece of earth and support the Green Initiative by leaving the plot free of construction as green lung for the future generation! (Incidentally, do note that you can build Farm Houses in GO111 areas, to an extent of 5% of land area. But you will need at least half acre to have a decent home. Offcourse its likley that you will be the only person around, in the locality!)
As far as we understand, there is NO CHANGE from Original Position.
The news papers have published Headlines that there is no Servivce Tax for Residential Properties, based on a statement made by Finance Minister in Sept 2007. The statement is subject to several conditions, which were not brought out.
If the Developer constructs the buiding himself, without subcontracting, then no Service Tax will have to be paid by Builder and hence Buyers need not pay Service Tax.
BUT normally, the construction of all large apartment complexes are outsourced, by the Builders/Developers. Service Tax is to be paid by the Service Provider of the Developer/Builder. In this case Service Provider is Construction Contractor engaged by the Developer/Builder.
Obviously, Construction Contractor will pass on the Service Tax Bill, to Builder (like BSNL does on telephone bills by charging consumers.) Builder will happily pass on the burden, to Buyers.
As of October 2007, the Service Tax Law unfortunately does not prevent Builders from passing on the tax payable, to Buyers. The only way we can avoid ST, is to buy apartments from small builders who generaly do construction themselves.
According to recent HUDA public notice, all the new
DTCP layouts should follow HUDA norms. Is it going to
affect the existing DTCP layouts anyway?
Not those who have received prelim approval and those who are now getting ready for final approval with all seriousness.
Do you suggest buying plots in the old DTCP layouts?
As new layouts will be ready with HUDA norms soon, I
am thinking if it is better to wait for new layouts.
If location is good, its better to buy in FINAL approved DTCP layout which has conversion certificate. The cost of new HUDA plot in same location has to be much higher. Good DTCP layouts also would get costly, once new HUDA Layout come up.
Also, as the new layouts should follow HUDA norms,
do you think the prices in new layouts will be
considerably higher than the existing layout prices?
YES. It will be and has to be higher. But remember that once New HUDA layout comes up, with new pricing, all Good DTCP layout with Final Approval will see price rise, to match HUDA plot layout pricing. The key is in locating the best DTCP layout and buy at low price, before HUDA approvals start, in areas which have come under HUDA, as of April 07!!
Hi Sai, Mr. Homes, would definitely describe this episode as "a singular, unpleasant experience!" Its most unfortunate that though there were hundreds of layouts all around, you landed up with the wrong one.
I have found that getting DTCP approval is no big deal. If land ownership is clear and land is not in Conservation Zone, DTCP approval is relatively easy. In the case of your layout, there is something terribly wrong, which obviously the developer would not divulge. Now that DTCP has been advised recently by HUDA, to approve as per HUDA norms, the matter becomes tricky.
If you had bought the plot with clear understanding that it is a proposed DTCP layout and the developer has failed to get DTCP approval and wants to register under Panchayat approval, you can definitely demand full refund. In my opinion, with hundreds of DTCP layouts all around, which themselves may find no resale for 10 years or more, getting a buyer for Panchayat Layout in this area, would be tough. Its unfortunate that you made full payment, before DTCP approval.
Usually, once developer vanishes from the scene, its almost impossible to regularize. If they were not able to sort out issues with regard to ownership or any other matter, its impossible for individual buyers to handle approval. Also, do note that in an unapproved layout, individual plots can not be regularized. The whole layout has to get approval.
Even if you have registered plot with Panchayat Approval, in future, the value and demand will be low, especially since there is "over supply" of DTCP plots, in the locality. Though Panchayat Approval for Residential Layout is not legal, we have not seen any move by Govt to stop construction in Panchayat approved layouts. Local Panchayat has right to give building permission and they will give permission if layout were approved by them. (Note: All DTCP or HUDA layouts have to get Panchayat approval first. The file then goes to DTCP or HUDA for layout approval)
Please note that in areas like Guchibowli or Narsingi, people buy in Panchayat Layouts since availability of HUDA plots are very few and the demand is very high. But in the wilder lands of Maheswaram, it would take ages for real demand to come, since there is no reason for buyers to go deep in un-secure, unsafe areas, where no soul will step out, when darkness falls.
Since the land comes under the new expanded HUDA (HMDA), your layout will be branded as Unauthorized, by HUDA in future. Only layouts which have proper DTCP approval and Conversion Certificates will get automatic HUDA Approval. Also all layouts which have not got DTCP prelim approval by April 2007, are supposed to be approved under HUDA norms.
These layouts are Not Under Greater Hyderabad but they will come under HMDA(Hyderabad Metropolitan Development Authority.) Since both are DTCP Prelim approved layouts with residential conversion, they would become automatically approved under HMDA subject to final approval.
Final Approval may be by DTCP itself on behalf of HMDA (Since the projects were prelim approved by DTCP). This is the current thinking. If there are any specific requirements we would defenitely take care and inform all buyers. We need to wait for HMDA notification and then its likely to take 6 Months, for take over of all DTCP layouts, under its jurisdiction, by HMDA.
Its unfortunate that Govt. agencies like DTCP and HUDA whom we all trust, are failing us. ITs THIER responsibility to ensure conversion, before according approval. Farm plots are available at less than half the price at Shamshabad. Why should we pay double, for so called "residential" plot if its in fact farm plot only???????
Its good that you followed up with developer. They SHOULD pay the required conversion fees and development charges and they should get conversion certificate. Then only we can at least hope that DTCP will ensure suitable change, in Master Plan. If the developers vanish without converting, after sometime, the then DTCP may say that the land is agricultural...and then ask owners to pay for conversion...it will be a big headache. Also value of layout will be low, in future, if a neighbouring layout has conversion certificate and yours do not have.
I think the process may take not less than a Month, provided all land papers and boundary of layout etc are clear. The MRO has to seek clarification from Panchyat. Panchayat resolution agreeing to the Layout has to be there. MRO also will call for ownership details.
Hi Prasad...For most people whether they are abroad or in Hyderabad, there is substantial mystery surrounding the jurisdiction and functions of Town Planning and Revenue agencies. Since the details could not be accomodated here, please view separate write up on this matter covering DTCP, HUDA, HADA, CDA, MCH, Panchayat, Municipality etc. Click Here!!
Please Check FAQ at HUDA website (http://www.hudahyd.org/inside/hudafaq.asp Question 27) That has reference to layouts by this developer. Unless you verify the Sale Deed, this can not be checked. Check Village name in Sale Deed and check whether the village is in GO 111 Village list.
By the way, whatever HUDA may say, the fact on the ground is that there is nothing wrong or illegal in owning land. The question is limited to buyer's choice. I do not think anyone loses money by buying land which has proper ownership records, except that the gain could be low and also resale tough.
1. If you were looking for residential land, you should have bought a DTCP or HUDA approved Plot.
2. If you were looking for fast appreciation of residential plot, then you should have bought in localities which can give fast appreciation
3. If you were a nature lover and just wanted farm plot with low appreciation compared item 2 above, you could defenitely buy in GO111 area or buy Agricultural Fam Plot in any other area and use small percentage of land, to build!
As I said, its a matter of what your objective is, except that it would be plain dumb to have a certain objective and buy something which do not meet that objective!
Always set a clear primary objective, before stepping out to buy!
First of all, our discussion in Q&A is with regard to restriction imposed by GO111, in Conservation Zone of Gandipet and Himayat Sagar Lake.
So your statement that "Your Q&A section says that construction cannot be more than 5% for agricultural land" is not correct. We were not discussing general agricultural land but agricultural land under GO111.
Its not the intent of Govt. to implement 5% building restrictions in ALL Agricultural areas.
If the land is within GO111, the allowed percentage of construction is only 5%. BUT, the govt. is not going to run behind each house with a measure tape. The restriction of construction is to ensure that organized residential layouts with LARGE Percentage of Construction (like Gated communities) do not come up in these areas. As long as large percentage of land in a Village remains under Agriculture or remains unconstructed, its fine since it meets the intent of GO which is to protect the catchment areas from over utilization. No one would be undully worried about few homes coming up in a Village which otherwise has thousands of acres of open land! No one would object if a gated community of Farm Houses is formed with low constructed area even if its above 5% and close to 25% and if LARGE percentage of Open Area is kept
As clearly indicated in Q&A, Panchayat would give permission for 25% and above, even in GO111 areas. As per law, local Panchayat has full authority to give building permission upto 10 Meters height. Once Panchayat gives building approval, you need not worry. (OFFCOURSE WE NEED TO ENSURE THAT THE LAND ON WHICH THE FARM LAYOUT HAS COME UP, AS SUCH, IS NOT UNDER ANY ACQUISITION PLAN.)
Pragati as such, has thousands of acres of land. The total constructed area for their villas will be a miniscule percentage of total land they hold.
Incidentally, you may note that Panchayat do not have right to give permission for residential layouts. But they can approve Farm Layouts where land remains as agricultural use, in revenue records. HUDA or other urban bodies do not have provision for approving Farm Land layout, so they can not approve them. Their job is to regulate organized residentail and industrial use of land.
As such there is nothing wrong in buying a farm plot or building and staying in a Farm Home. Its a personal matter of choice, whether to stay away in a Farm Home or stay closer in residential areas!
Though the issue is very simple, looks like most of the NRIs are tying themselves up thinking that this is a knotty matter!
1. If you want to invest and take back money BEFORE 10 years from the date of investment, you can take back only the money brought-in from abroad. (Or if you have taken NRI loan, that much)
Obviously, no one invests to take back the principle. You could invest in US, as well.
2. After 10 years, you can take back entire sale proceeds. It has no relation with the original registered value. Assume Mr.Pradeep got 75L white amount, by selling, after 10 years. He can repatriate entire 75L, whether the registration was done at 3L, 10L or 15L. In effect, registering at higher value, for this specific purpose, only results in one paying more stamp duty/regn. charges, needlessly!
Similar question was raised by S. Nandala reg Peddashapur Village near Airport. Unfortunately, AS FAR AS I KNOW, the Govt. has dumped whole villages (lock, stock and barrel) into GO 111 List. There are no exempt survey numbers, for any village in GO 111.
Note: Vattinagapalli (Vattinagulapalli), is quite close to Gopanpalli T Junction. The ORR cuts through Vattinagapalli. Between ORR and Gopanpalli is Tech Park, beautiful layout of Farm Plots in Vattingapalli.
The location is good and close to Fabcity. However, our members from abroad have voiced concern regarding pollution by Fab Industries. This area being just beside Fabcity Boundary its said to be too close, for comfort. At the end of the day, this matter may not really be a major issue, for most of the local population. I have chosen not to recommend this locality, or any other within 2 KM, since concern have been raised. However, decision has to be made by individuals, based on preferences.
Additional info on FAB pollution is available HERE!
I think part of the Layout is within 1 KM. Nearest Plot could even be within 500 Meters. May be us should get the Plot physically verified with respect to ORR. I am also not sure
whether the 1 Km restriction, is from center or edge of ORR! ORR with service roads, are pretty
wide.
I have not heard such complaints recently. All DTCP Layouts have been receiving approvals, without much of delay. If the new Company has put the approval process, in progress, you need not worry. Please ask relative here to get from the Company, the Panchayat Recommendation letter for the Project, to DTCP. Panchayat is supposed to pass a Resolution and confirm to DTCP that everything is fine. Then DTCP approval should come, in due course. Usually it does not take more than 3 months from submission of approval request to Panchayat, to get such recommendation.
Panchayat should give this recommndation if they are okay with the Layout Survey Plan (Usually by Govt. Surveyor) and also the authenticity of ownership. (If land is problematic like assigned or Govt land then project get stuck). I am not making any comments specific to the Project, at all. I have no idea about this Project.
If the land is clean and ownership is clean, In my opinion, the developer should have got Panchayat recommendation. May be you could first check this and if this is not there, its serious matter all together!
If buyer is abroad, its always better to book, based on recommendation from an independent expert. Cheaper alternatives would have such problems or may get very low resale value/ or may not resell at all, for several years. This basically takes away the initial advantage of low price and spoils all our dreams!
My opinion on layout development/plot purchase in HADA area can be found Here!....I firmly believe that HADA area, being thinly populated, it may try to implement proper planned developemnt as per Zonal Developemnt Plan. This may not be the case in Developed areas in HUDA where places are already occupied. In such localities, no one bothers, including HUDA or Govt. since the poor and the unorganized have to live. It wd also become an election issue. But HADA area is not populated and hence its bit risky to go ahead.
As you are aware, HADA have published list of unauthorized layouts previousl, . which run into hundreds of names. In Bio Zone, NO planned residential activity is allowed. As an individual, you can buy a large plot and build 5% as a Farm House. May be you can build upto 10%, no one might object. BUT no developer can make residential layout and then build homes and sell. That is illegal.
Please see GO 111 and the impact discussed in response to Questions under Q&A. Ultimate dicision has to be taken by you. You may look at this as a risk but still go ahead! Its all upto individuals. But its important to be aware of the legal position. Many people do go ahead and buy. And if the Buyer is LUCKY, there may not be any problems too, in future.
As an NRI you can NOT LEGALLY BUY Farm PLOT. However, most NRIs buy and register with local address and no govt. agency monitors this and hence it may not cause problems. No bank will fund cost of construction, in FARM PLOT. If you decide to go ahead, its better that parents buy and then later Gift it to you. Then you are safe.
I feel that one should by 1/2 or 1 Acre plots in Bio Zone and build a Farm Home in 5% area. That would be legal, as long as the buyer says that he is using land for agriculture and that he is building farm house for own use.
Defenitely the area upto Express Highway Junction (EHJ) on Bangalore Highway from Agricultural University is very Prime. There will be commercial development all along upto EHJ. But I AM 100% convinced that the locations of Kottur / Thimmappur Mansanaplli etc are absolutely not up to the mark, when the objective is to MAKE MONEY in a reasonable period of time. If intention of a buyer is to get "Highway Returns" (That is decent year on year appreciation which plots on any highway gives), its fine to invest in these areas.
BUT I am sure, 99% of the buyers expect higher returns at the earliest and all those, have been duped into investing in these "Killing Fields"
Airport is NOT going to support high price rise, that we expect in these areas. There is no economic reason for such expectation. Moreover, whatever little that the Airport could offer, has been doused and flooded-out by merciless development of too much of Land, by Realtors. I have advised, as early as January 2006, that we could avoid these areas. That was earlys tages of land developemnt. But since then, thousand more layouts would have been launched and bought partially.
If prices have gone up in Tellappur/Nallagadla over the years, its with clear understanding that large number of people would in fact build houses, after few years, when expected employment figures in Guchibowli are reached. Also the available plots are very few. Potential demand should drive prices. Not imaginary demand! If Infosys quotes a PE (Price Earning Multiple) of >30, its due to the revenue/profit generating Potential. We all have seen, new companies with high, unproven, imaginary valuations, come crashing down!
If at all any large-scale employment generation has to happen, it would happen only on Srisailam Highway. Upto 10KM from the express highway junction on Bangalore Highway, we can not see any major employment genearating activity.. and have u heard of any big projects of potential coming up after 10KM, on Bangalore Highway, or anything near Shamshabad Town? NOTHING.
People at Airport have premium plot options between EHJ and University. They have reasonable price options behind Airport at Nagaram. (Nagaram / Nadupalli is the closest residential areas outside HADA /Bio Zone. At these locality itself there are hundreds of Layouts.... much more than sufficient to feed actual demand!) Also people working on Srisailam Highway, have superior options right nearby, why should they risk going into inaccessible inlands, like Mansanapalli or Distant locations like Kottur?
It may sound disheartening. But that is the fact of the matter.
I definitely am not saying that one should not invest in these areas. One should but with a clear understanding and knowledge of the above, so that there is no cause for regret.
COUNTER POINT BY ANUJ:
Thanks for the mail and I am looking forward to the map that you have mentioned below.
My investment timeframe is slightly longer and I am hoping to sell whatever (little) I have bought maybe 5 years from now. I believe that globalization & macroeconomics today indicate that a large chunk of economic activity will shift to India and many other countries. I feel the opportunity is too big for us to get our fair share and lets not bother about opportunities that might be taken away from us by other lower cost countries.
Given the above fact, Hyderabad is better placed than several other cities that could get a share of the above pie. I am ruling out places like Mumbai, B’lore, Gurgaon, Chennai, etc from the above consideration set as they have a different set of audience and those companies might still choose to go to above cities as lower cost is not the most important criteria for them. To a lot more companies and activities, Hyderabad might be able to provide “just ok” infrastructure (if the govt. get its act together and delivers – roads, power, water, etc) at an acceptable cost as it is still cheaper than several Grade “A” cities.
While I agree that Hyd is not the best place for business to set up shop in this part of India, it is still good enough for businesses who need to operate in a “value for money” type setup than Bandra-Kurla complexes of the world!!! . For these businesses and their employees, it is not a bad bargain. Infact, a lot of people who I have met that have come to Hyderabad from outside find it a decent place to live & settle (weather is not bad, decently clean city, etc) had the job scene been better like Mumbai/ b’lore. That will definitely take some time but it is not impossible.
If you accept my above story, then we should see a good number of companies moving to Hyd. I really do not believe the new projects, that get announced everyday, will drive the growth and that too so soon as promised by the realtors. It will take much longer time (5 years atleast) and maybe natural progression of businesses from Mumbai, B’lore, Gurgaon to move to secondary locations once they exhaust these primary locations and seek to diversify their operation infrastructure. The only thing that can drive the pace slightly faster will be the delivery of infrastructure as promised by the govt. In fact, if the guys in the govt. can deliver, they would be the ultimate beneficiaries as most of them hold a lot of land in these areas anyway.
.With the development of the economic activity, there would be new people pouring into Hyd and not all these guys can afford Gachibowli. I feel the next phase of real estate activity would be redistribution of value across the city. If wider roads and flyovers happen, I do not mind living in a slightly far off place where I can get a better value for house / apartment than what is being sold in Gachibowli / Kondapur. This can mean city spreading out and over a period of 5 + (my time frame) years, the prices will start going up even in far off places like kottur in anticipation and the main areas would probably stay there artificially (or supported by one off big buys). Again, I have to mention that infrastructure like Roads, water, etc will be the key to all this. If they do not happen, nothing happens anyway and we all can still go those fields in Maheswaram even 5 years from now.
If Hyd has to provide large amount of land, its only available (whatever is left from excess plotting… haa haa) in the southern part and maybe eastern part. A lot of land around chilkur will not be available for commercial purposes which means you have to look for it around shamshabad, maheswaram, kottur, Timmapur & beyond … apart from srisailam highway. One can also maybe explore the eastern part between pocharam to the srisailam highway. One important thing again will be connectivity and good roads.
Since NH7 will anyway grow due to natural progress on a national highway and if one is hoping that fab city could be another driver for growth, then best way to de-risk is to invest between the 2 highways rather than banking on just one of them with just one project (which I think is a far fetched story anyway).
I agree there are too many plots available in the above area which might not actually support price gains but again unless you play you will not have a chance to win….but again there might not be a winner at all and one should only invest that money for which you have stomach to lose!!!...I am only banking on the fact that 5 + years from now I will be able to find some bigger fool than me who would believe in the above story and that’s good enough!!!
Please note that if No Development is allowed then Shamshabad Airport itself would NOT have been there! Neither can there be Guchibowli and so many other mega developments, within 10 Km Zone. In fact, there was a PIL by the Green Group against Airport on this matter, which was summarily thrown out, by the Supreme Court.
Only Polluting Industries, Major Hotels and Residential Colonies or other Establishments which generate Pollution, are Banned in 10Km radius that too only in the Villages as Per Annexure 1 of the Order.There are No Restrictions on Individual Houses, provided they take up only 5% of Plot Area. There are NO RESTRICTIONS in other Villages, within 10 KM Zone.
First of all, please note that Houses are Not Permitted within FTL. (Full Tank Level of the nearby lake). As long as your plot or land is outside FTL, you can construct in Conservation Zone, subject to the following:
1. Building in Non Converted, Non Developed Agricultural Land /Acres:
If your plot is in Conservation Zone under Panchayat and is a part of Agricultural Land which is not converted, you need to only apply to Panchayat for Approval. However, as per Govt regulations, you are allowed to build a Home in 5% of the Plot area to height of 7 Meters (2 Floors). In effect, if you have 0.5 Acre Plot (2420SQD) you can build home on 121 SQD. That is About 2500 SFT Duplex. By "suitable design" you can take it to 3000 to 3500 SFT. (Most of the Homes that we see in Farm Land are above 3000 SFT)
So as long as you have Plots of ˝ Acre and above, you can legally construct Homes in Conservation Zone. There is no doubt or ambiguity in this matter.
2.Building in Non Converted but Developed Agricultural Land:
If yours is a small plot in a Layout Developed under Conservation Zone, approved by Panchayat, technically construction is not possible unless plot is large. If Plot is 1000SQD, you can get 450sft Ground Cover. By "suitable" design you should be able to go up to 1500 SFT Duplex. So just like in previous case, you can legally construct Homes in Conservation Zone provided your plot is of Large Size. There is no doubt or ambiguity in this matter, either.
Please do not include us in the list of "Everyone"! The Draft Semicondutor Policy is already finalized and Cabinet note is prepared. In fact the Cabinet has now advised to include other electronic industries too, in the framework of proposed concessions.
Please do not get carried away by people whose life is devoted to negative thoughts and cribbing! There was delay.. but that was for valid reasons. It is a matter of loss of revenue of Millions of Dollars, due to tax breaks required to be given, to get Fab Industry to develop in the Country. Govt. has to take considered decison and its is on the verge of announcing the Policy. Please see Latest news dated 15.12.2006 at Economic Times. http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRILzIwMDYvMTIvMTUjQXIwMDkwMw==&Mode=HTML&Locale=english-skin-custom
Unfortunately the location that you have selected is after Maheswaram town, near Mansanapalli. The current approach is not good. The location is a bit too far for comfort! There is no clarity as to when a proper road would be laid to this area, from Srisailam Highway. Please ask someone to drive to the location from Srisailam Highway. You need to cross crowded, unclean, Maheswaram Town and go through dirt tracks. Unlike the impression you get when you look at the location plan by the developer, I am sure you would be disappointed with the drive! Developer's Location Plans would show Fabcity, Hardware Park and Infosys, at stone's throw away from all Layouts! You feel as if Infosys is at 2KM from the plot, when you look at the location plan, BUT, the fact is that its not less than 15KM away! Out of this, 7KM is country roads!
Access from Bangalore Highway is also long. There is a road from Airport area to Mansanapalli. However, we do not know when this would get widened fully and built properly. There are far too many layouts before yours, when you come from either Bangalore Highway or Srisailam Highway. We should avoid areas with too many options! This makes resale difficult.
Its advisable to buy plots as close to AIRPORT/ ORR as possible. Or Buy close to Srisailam Highway at Good, Neat Locality. Also check distances physically , from Major Points where large commercial activity is possible. Please be ready to pay premium price for good accessible, close location. Do not get attracted by low priced plots. You may not be able to find a buyer, for next 10 years!. Always get the location Marked on HUDA MAP and then evaluate.
No matter whatever happens including split, the impact would be insignificant in locations where properties are bought by Non Govt. people who might work and stay in those areas.
Unlike existing localities where there are people in business / politics, the occupants at Hitec/Guchibowli and surrounding areas would be those who work there or are planning to migrate to this location.
Its projects that more than 25000 highly paid executives would work in Guchibowli alone in the next few years. Many of them would be NRIs resettling into India. Also cool bunch of expatriates who require, ultra rich accomodation. Since they would keep buying properties and Companies would keep subsidising their Housing Loans, there is no way that a split could have serious impact.
There will be a lull. No doubt. But that would be only temporary. Please see result of recent election. While outlying areas were depressed, nothing happened in Hitec/Guchibowli areas.
I have seen people postponing purchase when price was only 70L, for fabulous gated bungalows. Today, we are staring at 300L. Many would still be cursing themselves, when prices are 700Lakhs in 3 to 4year time.
I fully agree with parents; they have construed correctly on overall impact. BUT they were not privileged to have information on emerging jobs, housing requirement and availability of land to meet such requirement in Guchibowli/Hitec areas. Land is very limited with ORR running just outside Guchibowli upto Kollur and beyond, virtually ringing Guchibowli. There are GO111 related problems too. Actual available land is limited but HUGE constructions are going on which would bring in more employment. In addition to Guchibowli Area, next year, we should see Golden Mile area construction too. After that, the 100 story Tower (That is just 3.5KM from Guchibowli). With all this, natural demand would drive prices.
Since owners who bought here are not going to run to Andhra for work, demand would continue. Price could remain static or soften abit from the then prevailing levels, immediately after election, during Andhra formation etc..(if it happens) but there can never be a crash, in these areas.
Its only in middle and lower income areas where people get panicky and sell, that crash happens. The rich would hold on to price. They may not have compelling reason to sell. Take the case of Jubilee / Banjara Hills. Do you think the rich will sell their plots, at Rs.25000/sqd? Negative Sentiment would result in Marginal fall but the market would recoup losses and continue to rise.
Hope you agree with above analysis. Well, history has proved that economics of demand /supply would ultimately prevail, over sentiments, when it comes to pricing. Hence boom will continue till the dust casused by construction finally settles and the there is no further creation of new jobs. In my opinion, that would take at least 5 years to happen.
Rather than losing money, what you would face in future, is the impossible task of raising crores more, to buy.
First of all, you have made the right decision to buy close to the HADA boundary at higher price, rather than areas like Mansanapalli and beyond, where there are hundreds of layouts! Areas away from Airport would take ages to reach a stage of second sales, since there are many options for buyers closer to airport. I hope your layout has good access (I did not see any direct access from Airport- side, sometime back). There should be resale in 3 to 4 years. At the moment, I do not think you can resell except may be back to developer. You should keep this. If your layout was in Mansanapalli or behind Maheswarm HQ, I might have advised to dispose off.
Reg. Bonguluru, the report mailed to Members is based on my asessment considering progress made by HUDA on Second Phase ORR Bidding. I have not evaluated any layouts there, yet. I hope to tour and report back soon. Meanwhile, do make enquiries through relatives. Do alert us, if you find any good layouts, so that other members also could benefit too!
