Real Estate Software

25/10/2020

09/02/2016

Hyderabad’s unsold residential inventory at five-year low

HYDERABAD: With steady absorption coupled with improving demand, Hyderabad's unsold residential inventory has come down to their lowest point since 2010, bringing some cheer to the lacklustre market, said a report by property consultant Knight Frank.

There was absorption of 14,093 units in 2015 as against the 11,197 launched as new launches dropped by 14 per cent in 2015, continuing the trend from 2014.
"The annual trend in launches shows a clear decline. However, the half yearly trend over the last three periods shows supply numbers stabilising gradually," said Vasudevan Iyer, Branch Director, Knight Frank, Hyderabad.

The report also hinted towards a recovery of 5% in absorption year-on-year during the first half of 2016. According to city developers, price correction is inevitable as Hyderabad property prices are already rock bottom and hence there will be a price appreciation. Residential units witnessed a growth of 3.1 per cent year on year during the second half of 2015.

On the other hand, the office market, despite a minor dip in absorption, posted robust numbers indicating an upward trend in office space absorption. In 2015, there was absorption of 4.6 million square feet as against 4.7 million sft a year ago.
Office space absorption is likely to push up by 23% year-on-year in the first half of 2016, while an approximate 1.9 million sft space is expected to come up, the report said.

Robust absorption coupled with falling supplies pushed vacancy levels to 14.4 per cent at the end of 2015 from 17.7 per cent in 2013. Interestingly, the second half of 2015 experienced the highest absorption levels of any half-yearly period in history on the back of big-ticket transactions by Qualcomm, Salesforce, Unitedhealth Group and J.P. Morgan.

Simultaneously, rentals have been increasing steadily since 2012 and picked up momentum after the second half of 2014, post the resolution of Telangana issue. Also, severe shortage of good quality office space in prime areas has turned the market in favour of landlords, who are asking for higher rents from tenants with each passing quarter. The rentals are expected to rise by 7 per cent in the first half of 2016.

09/02/2016

Blackstone may invest Rs 450 crore in Salarpuria’s Hyderabad office property

BENGALURU | MUMBAI: Blackstone Group, the world's biggest private equity real estate investor, is in advanced talks with Salarpuria Sattva Group to put in about Rs 450 crore in its upcoming, 30-acre commercial property in Knowledge City in Hyderabad, three people familiar with the development said.

"This would be a pure equity transaction and is expected to be concluded in the next few weeks. The fund is picking up this stake on its own and not through any of its joint ventures with Embassy Group or Panchshil Realty," said one of the people.

This will be the first real estate investment by New York-based Blackstone in 2016 after being one of the most active buyers of office property across India last year. This will be one of the few under-construction properties that Blackstone is investing in - the fund has mostly picked up ready and income-producing office real estate projects. Blackstone declined to comment for this story. "Blackstone, as a matter of policy, does not comment on market speculation," the fund said in an email response to ET's query. Mahesh Khaitan, director of Bengaluru-based Salarpuria Sattva, declined to comment.

Knowledge City in Hyderabad is spread over 200 acres of land that was sold to some 13 companies for Rs 2,000 crore by the Andhra Pradesh government in 2008. Salarpuria Sattva bought 30 acres in the project for over Rs 400 crore. The proposed Salarpuria project is estimated to have total saleable office space of 6.5 million square feet, which will be developed in phases over the next five years. Swiss pharmaceutical company Novartis picked up 1.15 million sq. ft. of space in this project last year to consolidate and expand its operations in Hyderabad.

Blackstone concluded some of the major office property transactions in 2015. Among them was its buyout of Gurgaon-based builder Alpha G: Corp for Rs 1,600 crore, the first full acquisition of a real estate company in India. Blackstone also acquired 247 Park at an enterprise value of Rs 1,050 crore and paved way for the exit of investors Milestone Capital and listed construction firm HCC.

Private equity real estate companies deployed over $5 billion in Indian real estate companies and projects in 2015 - the highest since the financial crisis of 2008. These firms made 90 investments in India last year, of which 85 transactions had an announced value of $5.06 billion, according to research from Venture Intelligence.
Investment values surged from $2.2 billion in 2014, when there were 75 transactions. Demand in India's commercial property market in the top seven cities has risen, with deals covering a record 38 million sq. ft. in 2015.

02/02/2016

02/02/2016

Naidu reiterates charge that YSRC was behind Tuni violence
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday reiterated his charge that YSR Congress was behind the violence that rocked Tuni town during the Kapu Aikya Garjana and quoted his party leaders from Godavari districts and north Andhra as saying to that effect.
Holding a teleconference from Vijayawada with party functionaries, he lashed out at YSR Congress President Y.S. Jagan Mohan Reddy. He said that the people of Godavari districts defeated the YSR Congress candidates during the last elections and that was why Mr. Jagan was trying to rouse the passions in the name of caste.
The incident at Tuni holds a mirror to the politics practiced by the YSR Congress, he said. The Chief Minister alleged that the aim of the YSR Congress was to strike fear in the minds of investors through such incidents.
Seeing the success of the CII summit at Visakhapatnam and Davos tour, Mr. Jagan did not know what to do and was resorting to such evil acts. He also accused him of hatching conspiracy to damage the image of the State.
He urged the TDP leaders to create confidence among members of the Kapu community while also assuring the BCs that their interests would be protected.
He also reviewed the polling in the GHMC elections and observed that Telugu Desam had the chance to win at many places. He asked the TDP functionaries not to leave the polling booths till the last voter exercised his/her franchise. He said that a control room was set up at the TDP’s central office to assess the polling trends.

02/02/2016

Food-startups, a major attraction
The focus of food-specific startups, as a welcome change, was around the quality and the pricing. Time 2 Tiffin, a mobile app catering to users who’d target a time-space between 7 am to 11 am, pitched itself around the no-minimum-amount barrier tag and the logistics aspects. Wichplease.com, as the name says, a sandwich-delivery service, has its own outlets and can serve users through their website and mobile app too.
The most impressive was Dinesmart, coming across an easy-access application for users to order sitting inside a cinema hall, hotel rooms and cafes/restaurants without depending on the waiter. Another pitch was made by O-Mitra, ensuring food-delivery services to a rail passenger.
Beyond e-commerce
Manufacturing and hardware companies were also among the ones to attract the eye-balls, with examples including the likes of IoT Suitcase (providing the platform as a service), Qloq Technologies (that produces semiconductor designs and verifies intellectual property) and Coat-X (a coating to ensure gloss and durability).
A trial run
A lot of companies, who did their homework well and were only a few months into their running, took the opportunity to know their stand in the market with more clarity. The confidence of Getme, founded by Shravya Reddy, an engineer showed when she confessed, “We were here to enjoy the platform, the networking, the feedback besides finding takers for our ideas.”
Winners: Jilmore (an app that books celebrities for events), Dinesmart, Coat X, Getme, IoT Suitcase, Wichplease.com
Impressive: Treekart.com (founded in Kadiyam, Rajamundry that sells over 5000 plant varieties across the city for your gardening needs), O Mitra (ensures food delivery to rail passengers besides auto-sharing, social networking, gaming and seat exchange facilities before and after the journey)
Investor-advice
-Trust initially comes from the people, later the idea
-Don’t trust a success formula, ensure novelty-Make only one product, your focus
-Focus on users who’d come back to you regularly
Incubator at St.Martins Engineering College
-Can incubate 8 startups
-Available for college students and outsiders