Posted by Dear All,
I’m working for an IT firm in Mumbai. I would like to invest in a premium property such as Villas, Duplex, Luxury apartments etc, in Hyderabad. Although, i have no preference regarding location of the property, i am interested in West and North of the city. Couple of my contacts / friends suggested Gachibowli and Kompally areas for potential investment. However, i’d like to take views on the same.
(1) Potential of Gachibowli and Kompally areas
(2) Current market price, as a benchmark for my understanding
(3) Prevailing rentals in these areas – As i am planning to let out the property
(4) Negotiation probability with developer (considering the slump in real estate market)
(5) Finally, anything i need to watch out for
Thanks in anticipation of your help.
Regards
1. Potential is huge for both Gachibowli and Kompally. Gachibowli because of the proximity to Phase 1 of ORR which is likely to be thrown open in a few months.Kompally has a huge potential because of the posh residential neighborhood it can provide due to ultra posh ventures underway and also because of its proximity with Satyam’s huge campus in Bahadurpalli which is continuously expanding.
2. Current market price in Gachibowli is around 3500 per SFT for a well built apartment nearing completion, with good amenities. It may increase for ventures in prime locations within Gachibowli and for better quality, expensive flooring, fittings etc. In Kompally it is about Rs20000 per Sq. yard of land for prime locations within Kompally.
3. Prevailing rentals in Gachibowli are quite high. It could be around Rs9 per SFT. In Kompally, it should be around Rs9 per SFT for luxury villas. For apartments, it is much lesser. However, the rental value is set to increase drastically in Kompally after Satyam throws open its almost completed new blocks. It will increase further when Satyam SEZs become operational sometime in 2010.
4. Negotiation with developer is possible in Gachibowli if you talk to go to a small venture with lesser number of units. However, in bigger ventures, the prices have almost become fixed. With the entry of DLF, Jains Housing in the neighborhood of Gachibowli, the developers are not able to quote unrealistic prices anymore.