Rental and Purchase Demand Increases in Chennai’s Premium Locales

Are you unwilling to compromise on the lifestyle you are leading for a Chennai house? If you like amenities, strategic locations and lots of amenities then you should consider living in Chennai’s premium locations such as T Nagar, Anna Nagar, Adyar, Nungambakkam and Kilpauk. You can buy a flat or house in this area if your budget is between Rs 1 and 6 crores!

Not only do these areas offer good amenities and lifestyles but also high rental returns. For instance, Adyar has shown a constant increase in rent values in the past 6 months. In the first quarter of 2014, the rise in rent was around 13 percent whereas in the second quarter it rose by 7 percent. Most people wanting house for rent in Chennai have enquired about properties in Adyar but in the past few months, the enquiries have increased manifold. The conversion rate too has increased which has further strengthened rental values.



The increase in rental values certainly is good news for investors of the area who want healthy returns on rent. Despite an increase in rent, tenants are not shying away from the area. Adyar happens to be among top 10 localities preferred for rent in Chennai. The constant demand for rented accommodation in this locality is mainly from IT professionals and locals. Most of them want to live in premium areas of Chennai which is why they enquire about property in Adyar. The price of property in Adyar is quite high which may make it out of reach for most middle class and upper middle couples but renting property here is certainly possible. The average capital value in Adyar is around Rs 12000 to Rs 15000 for square feet which make it one of the most expensive areas of the city. However, the rent in this area is around Rs 25,000 to Rs 30,000 in a month.

Currently, multi-storeyed apartments, builder floor units and some house for rent in Chennai Adyar are available here. The most supplied unit in this area is the 3BHK flat which may be leased for Rs 25,000 to Rs 75,000 in a month while for a 2BHK flat; the rent is around Rs 15,000 to Rs 40,000 in a month. Adyar’s closeness to IT areas and its location by the OMR or Old Mahabalipuram Road has made it a favourable place for renting apartments in Chennai. Some of the IT parks which are located close-by are the Rajiv Gandhi IT Park, Ramanujan IT City and TIDEL Park.Adyar enjoys public transport services which makes connectivity to other areas of the city easy. Businessmen would find living in T Nagar convenient because of trade areas located nearby.

Because of civic and social infrastructure along with closeness to employment hubs, many buyers conscious of their lifestyle prefer staying in these areas. If your budget is not very high to be able to afford living in these areas, you can consider living in house for rent in Chennai in these areas. These areas are much in demand by rent-seekers because of their location and amenities. There are a lot of HNI individuals whose annual earnings are more than Rs 30 lakhs who buy properties here while those who want to stay here but cannot afford to purchase properties prefer to rent houses.

Tenants are uninhibited to shell out Rs 25,000 to Rs 50,000 in a month for enjoying the easy access to various facilities. Renting an apartment here reflects tenant aspirations apart from the fact that they want to live near the city. Anna Nagar and Adyar have been quite popular among tenant in the first quarter of 2014. Investors have capitalised on these and their rental yields have been quite encouraging. An investor stands to earn Rs 60,000 in a month from a 4BHK house in Kilpauk while in Nungambakkam, s/he can earn around Rs 70,000 in a month from 3BHK multi storeyed flats.

Most of the 3BHK apartments in Anna Nagar and Adyar can be rented for Rs 40,000 to Rs 50,000 in a month. In T-Nagar, the rent for property may be as high as Rs 1.5 lakhs in a month. Most businessmen in other areas of Chennai come to T Nagar because of its closeness to business locations. Corporate lease is quite common in most locations here. These popular places in Chennai have a lot of buyers flocking to them. A lot of people recycle their properties in peripheral Chennai, Madurai or Coimbatore to opt for an expensive residence in a promising and premium location of Chennai when the question of basic physical and social infrastructure is concerned.

Re-Development in Chennai

Even though a lot of these locations are becoming saturated, they are being redeveloped and the concept has caught on quite quickly in various areas. A lot of these posh locations are being redeveloped into 3, 4 and 2BHK flats for sale. Because the numbers of investors in this area are high, tenants too shall benefit from occupying flats which have been made over.

For developers, the benefit of obtaining better buildable spaces without investing any money is quite irresistible. Owners too benefit as their old flats are given a facelift. Some of the redevelopment stances include improved architecture and better interiors, covered car parking facilities, flooring and an entirely modern outlook. Redevelopment also considers modern governmental norms such as the FSI or Floor Space Index where older buildings are bulldozed to create new ones keeping in line with government regulations.

Areas such as Besant Nagar, KK Nagar, Indira Nagar and Shastri Nagar in Chennai are opting for re-development. Some of these areas were developed by the TNHB or Tamil Nadu Housing Board almost 40 years back and required such stances of redevelopment. Even those apartments which are held privately in Nungambakkam have undergone redevelopment. Because premium localities are reaching a point of saturation, almost half of the existing properties are undergoing make overs.

If you want to live in a posh locality in Chennai as a buyer or tenant, then you should definitely consider living in one of the localities mentioned above.

Middle Segment Housing in Bangalore and its Best Locality

When it comes to middle income housing segments, Bangalore has shown the maximum capital value appreciation at 41 percent in the past 3 years. On the other hand, Pune has topped the list of capital value appreciation with 39 percent for higher end properties among the 7 major cities of India. In the NCR Delhi region, housing prices increased by 24 and 22 percent in the high and middle segment properties in the past 3 years. The 7 cities which are included in this analysis are Mumbai, NCR Delhi, Chennai, Kolkata, Hyderabad and Pune for ranking the average appreciation of capital value.

The middle segment housing properties in Bangalore have shown the highest appreciation in average capital values over the past 3 years whereas Pune showed the highest median appreciation for higher end properties of the same period. The middle segment housing’s capital values have gone up in the bracket of 14 percent to 41 percent in the past 3 years whereas those in the higher end properties have gone up by 16 to 39 percent during the same period. After Bangalore, the highest percentage increase was that of Pune at 28 percent followed by Chennai at 27 percent, the NCR Delhi at 22 percent and Kolkata with 17 percent. Mumbai has exhibited a median increase in capital values by 16 percent almost whereas Hyderabad has shown an increase of 14 percent almost.

When it comes to the higher end segment, Pune has shown the highest rise in capital values at 39 percent which is followed by Bangalore at 37 percent and Chennai at 34 percent. NCR Delhi and Mumbai have shown an identical average rise of 24 percent almost whereas Hyderabad showed an average rise of 16 percent almost. In terms of capital value appreciation, North West Bangalore has shown the highest capital appreciation at 95 percent which is the maximum among top 7 cities of Indian. This has been possible solely because of the best quality development taking place which has further fuelled growth. 

There was much disparity in median capital value appreciation level in the past, the increase in capital values across all markets have shown positive developments on the real estate fronts despite slower economies. Markets which are mostly driven by end-users have shown the highest possible rise in capital values whereas markets which are driven by investors such as Mumbai and NCR Delhi have shown lesser appreciation.

The slowly growth real estate in markets driven by investors may be due to sluggish economic development, the Indian rupee’s depreciation in the face of the dollar and other factors of unrest like inflation and slow rate of development of real estate.

Several localities of Bangalore have exhibited consistent growth in the housing real estate market and appreciation of capital values. One of the posh addresses of South Bangalore, Bannerghatta Road has shown capital appreciation and consistent growth, much to the delight of local investors.

Three factors could be attributed to this increase in prices.

         Improvement in Connectivity

The improvement in connectivity to east and south Bangalore has led to a hike in real estate prices. The transport system of Bannerghatta Road is highly planned and efficient with economic hubs and newer corridors in place. These improvements in connectivity have elevated prices in the area to a great extent. The BMTC or the Bangalore Metropolitan Transport Corporation has bus service operating in the area and it connects Bannerghatta Road to other important areas of the city.

          Increase in Job Prospects of Bangalore

The job market in the vicinity is growing which is also quite attractive to buyers who want to buy a home in the vicinity of these office spaces. The main focus is on JP Nagar which has offices by Accenture, CISCO, Infosys and IBM along with Convergys and Honeywell.

       Natural Beauty of Bannerghatta Road

Bannerghatta Road is on a high because of the natural beauty of the area. Most buyers of this area are end users which is why they prefer to have a lot of greenery around along with a pollution free environment. These factors make the area liveable for buyers.

What can buyers get here?

Buyers have the option of choosing from various kinds of apartment complexes, from builder floor flats to multi-storeyed complexes. You can buy a 1BHK flat in Bangalore in this area for Rs 25 lakhs to Rs 30 lakhs whereas for 2BHK flats in Bangalore in this area, you would have to shell out Rs 30 lakhs to Rs 50 lakhs. For 3BHK flats, the price is around Rs 45 lakhs. Price of 3, 2 and 1BHK flat inBangalore Bannerghatta may vary according to the area and facilities and amenities offered. Even though most of the flats supplied here are multi-storeyed flats, a few residential houses are also available for sale. The selling price of such houses is around Rs 70 lakhs or so.

Future of Bannerghatta Road

The area is considered to be a safe bet area for most end users as from now on, improvements shall be there in infrastructure and connectivity which will further lead to a rise in demand here. The upcoming metro services should further boost the capital values of property in this area according to local realtors. The Metro Station on Bannerghatta Road shall be a part of the New Line through the North South Corridor which would connect the Trinity Circle and MG Road to other areas of commerce in Bangalore. Once the metro railway becomes operational, prices should go up by 20 percent or so.

As evident from the statistics, Bangalore is slated to grow further as employment opportunities will increase. As soon as the metro services start in Bangalore, property prices would increase rapidly. Both localities in North and South Bangalore are expanding rapidly and their prices too are increasing. Both sides have their own benefit- one connects better with the airport and other IT hubs that have come up near the airport while the other connects well with the IT hubs of the south such as Electronic City and Manyata Tech Park.

Noida and Indirapuram as Office and Residential Hubs

Noida has become a hub for IT Parks and Hi Tech Industries in the recent times along with SEZs. The hubs are now taking urban turns as well known property developers are offering residential property in Noida along with social infrastructure close by. One such area is the Noida Special Economic Zone or NSEZ which was built by the central government. The area is located between Sectors 81 and 106 and is hardly located 3kms from the Noida Extension. Properties of various budgets have been made available here and there is ample supply of residential property in Noida here. Because of the area’s proximity to the Noida Extension, demand from mid income or middle class professionals is quite high. This class of people prefer to stay near their office. A lot of the demand is generated by those working in the SEZ.

Most people have the objective of living close to their offices so that they do not have to travel too much and can also get good facilities Connectivity to other areas is also important so that travelling far is not a big problem. The search for improving livelihood and work opportunities has brought this area to attention of a lot of people. Many people migrate to the NCR for work opportunities. Because of the increased housing demand, developers have come forward with residential properties near work areas. As housing demand rises in a locality, the demand for social infrastructure has also risen. Availability of a wide variety of products such as affordable ones to luxury ones has brought professionals to this place for buying property.

Buyers’ attention has been drawn mostly by areas which are near IT Parks, MNCs and SEZs and have good social infrastructure. Buyers prefer to have schools, shops, public transport and their office close to their home, preferably at a walking distance. All these criteria are met by the office areas of Noida.

Connectivity and Infrastructure

The NSEZ is still developing unlike the Sector 62 although the area has rich social fabric such as banks, hospitals, markets and schools. Most professionals working in the NSEZ own a mode of transport. However, autos and bus services are available for those wanting affordable commute options. The Expressway Highway is directly connected to Delhi whereas Dadri Main Road offers connectivity to Ghaziabad and Indirapuram.

One of the most established areas of Noida is Sector 62 and it has a combination of residential and commercial spaces. Malls have been built near the Sector 62 and Sector 63’s commercial area is also quite near this locality. Hospitals, Schools and the busy market of Sector 18 are also located quite close to this area.

Price of Apartments

The median price of 3BHK flats in Sector 62 is between Rs 45 lakhs and Rs 1.5 crores. These flats are sized between 1200 sq. ft. and 2400 sq. ft. The price value of a 2BHK apartment in this area is between Rs 30 lakhs and Rs 1 crore and their sizes range between 900 sq. ft. and 1420 sq. ft.

The Noida Extension too has quite a few options for residential property in Noida. Those working in the NSEZ and wanting a 3BHK apartment of carpet area 1360 sq. ft. to 2400 sq. ft. would have to pay between Rs 40 lakhs and Rs 86 lakhs. For a 2BHK flat, you would have to pay at least Rs 30 lakhs.

Those working outside Noida would prefer to live in Indirapuram. It is one of the most preferred areas of Ghaziabad for rent and sale according to property indices for the first quarter of 2014. Located by the NH 24, the locality is close to both Delhi and Noida. There are a number of MNCs and IT hubs in the area. Noida’s Sector 62 is located only 10 minutes from here and this has attracted a lot of attention from buyers. Because the area is close to work places, it has increased demand from those wanting to rent apartments and capital values have been pushed up as well. Connectivity via the Metro Railway is good in Indirapuram and the area also has very good connectivity via roads. South Extension and Nehru Place along with the central business area of Connaught Place are only 25 minutes away from here by car. Other areas of the NCR region are easily accessible through local transport, metro and road.

The area is an alternative of Noida which is why many people prefer to buy or rent flats here. A lot of projects in neighbouring areas and Noida Extension are stuck in legal problems which is why they have been postponed or delayed. However, in Indirapuram, apartments which are ready to be moved into are available.

Numerous private educational institutes and universities are located across highways and this has also brought in demand for rented flats from students. Indirapuram is a prime location to live in because of closeness to offices and educational institutes. Even though Kaushambi, Vasundhara and Vaishali are close by and similar kinds of property options are available there also in a similar budget, they are not much preferred. The bad road connectivity and less developed social infrastructure of these areas make them less coveted. Going to these areas in peak hours is quite difficult here.

Indirapuram and the area surrounding it have a number of commercial sports, malls and hospitals on offer. A lot of development plans for infrastructure are also there in pipeline, which includes widening of the NH24 to an eight lane road from a four lane one for easing traffic congestion.

Opportunities for Investment

For a semi furnished or furnished 2BHK flat measuring between 500 sq. ft. and 1300 sq. ft. in Indirapuram, you would have to pay between Rs 20 lakhs and Rs 90 lakhs. Those looking for 3BHK flats whose sizes vary between 1400 sq. f.t and 3200 sq. ft. would have to pay at least Rs 50 lakhs.

Options for Rent

To rent a 2BHK flat between 900 sq. ft. and 1500 sq. f.t, you would have to pay between Rs 12000 to Rs 25,000 in a month. For a 3BHK flat whose size varies between 1200 sq. ft. and 1980 sq. ft., the rent is between Rs 15,000 to Rs 30,000 in a month.

Therefore, if you are thinking of buying a residential flat or renting a home, you may consider Indirapuram.

West Bangalore Offers High Potentials for Growth

Bangalore is one of the fastest growing cities as evident from the fact that capital appreciation is the highest in Bangalore. Being driven prominently by the IT industry, the growth of the sector is also empowering the growth of housing demand. As more numbers of people migrate to the city for jobs, the demand for housing would be on the rise. Most people usually prefer staying in North Bangalore because of its proximity to the International Airport and other IT SEZs, south Bangalore too is quite prominent.

Western Bangalore took some time to become prominent but now there is no stopping it. The area has spread wide and far and much beyond the borders of traditional neighbourhoods such as Vijayanagar, Rajajinagar and Yeshwantpur.  The upgraded Bellary Road has improved connectivity of West Bangalore to North. The elevated expressway goes through the outskirts of the west and the Tumkur highway. Important locations of the North East are connected to West Bangalore via metro railway. The improvement in connectivity has led to increase in the speed of development of this area.

Property in Bangalore

  West Bangalore was earlier occupied by industrial and trading activities because of its connectivity inter-state through the Yeshwanthpur Railway Station and Kempegowda Bus Station in Majestic.  As both the railway station and bus terminus was in the west, industrial activity too was concentrated here. The capital appreciation of the area has happened mainly because of its closeness to the Central Business District comprising of Ulsoor Road, Richmond Road and Vittal Mallya Road etc. The transformation has happened only in recent times.

Growth and Metro Connectivity

The time taken to commute is mainly the deciding factor when someone chooses a home rather than the distance required to be covered. West Bangalore has benefitted greatly because of the presence of the metro railway. When this line gets connected to central hub, the acceleration in priced would be more rapid. Prior to the opening of the metro railway, the capital values in the region were around Rs 5000 or so. However, after the metro railway line was inaugurated, it shot up to Rs 8000 or so.

As Bangalore is a radial city, its growth has been in every direction. Therefore, connecting various areas with one another becomes a big hassle because of the growth in traffic every day. Even though roads are being widened, it won’t prove to be sufficient for the rise in traffic. Hence, the metro railway and the elevated roads are the only source of respite for easy commuting and improved connectivity.

Areas in the West would be much benefited by the metro and hence its growth would be fuelled further. Jalahalli, Magadi Road, Tumkur Road, Yeshwanthpur, Vidyaranyapura, Abbigere and Nelamangala shall benefit a lot from the connectivity via metro railway. The presence of good social infrastructure such as malls, hospitals, schools and colleges have also helped the area turn into a residential hub.

Pricing and Options

For a 2BHK property in Bangalore West whose size is greater than 1100 sq. ft., buyers will have to pay Rs 75 lakhs or so in Yeshwantpur. Three bed room apartments whose sizes are around 1850 sq. ft. cost a little more than Rs 1 crore while 4BHK flats in West Bangalore measure around 3100 sq. ft. and their price is roughly Rs 2 crores. Magadi Roads also has 2BHK apartments on offer which are sized a little more than 1000 sq. ft. and available for Rs 28 lakhs. For 3BHK flats which are around 1400 sq. ft., Rs 40 lakhs have to be shelled out. Nelamangala also has 2BHK flats on offer whose sizes begin from 700 sq. ft. or so would cost one around Rs 30 lakhs while for 3BHK flats whose sizes are around 1300 sq. ft., the price is around Rs 55 lakhs.

Tumkur Road has 2BHK apartments of 800 sq. ft. size starting at Rs 35 lakhs or so. The 3BHK flats which measure 1200 sq. ft. in size shall cost one Rs 50 lakhs or so. Jalahalli has 2BHK property in Bangalore which is around 1050 sq. ft. for Rs 41 lakhs whereas the 3BHK apartments which measure 1500 sq. ft. cost Rs 60 lakhs or so. Near Malleswaram, the 4BHK flats are available from Rs 3.5 crores and they measure 2800 sq. f.t

A lot of developers are starting off on niche projects near the Yeshwanthpur Metro Station. Two malls in Yeshwanthpur and Malleswaram provide for the needs of residents in West Bangalore while some projects close to the highway are being developed to have a retail and residential mix in future. Kengeri and Bidadi are also areas to look out for as they will come up as investment locations that offer good connectivity. Connectivity in these areas would get a boost primarily as they would be located near Mysore and the Bangalore Mysore highway is being planned to be widened. The connectivity to the satellite town via the Phase II of the Metro Railway shall also benefit Kengeri.

Dynamics for Demand 

The price of ultra luxury and luxury apartments is around Rs 10000 to Rs 15000 per square feet and they are available in Yeshwanthpur and Rajajinagar. The mid segment luxury apartments close to Yeshwanthpur Metro Staion are available in the Rs 6000 to Rs 8000 per square feet rate. The mid segment apartments in Rajarajeshwarinagar and Vijaynagar are available in the Rs 4000 to Rs 5000 per square feet rate. 

The price bracket of Rs 50 lakhs to Rs 1 crore is the safest market for catering to. Most of the demand for the Rs 1 crore flats comes from traditional businessmen, traders and industries while those employed in the IT and MNC companies look for middle segment apartments here. Top executives of MNCs and industrialists in this area look for residential options which cost more than Rs 1 crore.

Final Word

Realtors agree that there is tremendous growth potential in West Bangalore. A lot of premium apartments are expected to be constructed in this area because the elevated demand from the wealthy segment. The suburbs of Jalahalli and Tumkur Road have the potential of developing in residential hubs in the coming future. If more infrastructure projects are planned by the government here for the improvement in connectivity, the growth patterns of this area would become similar to that in North Bangalore. This would be the next best location to live in then.

Where Should You Opt for Affordable Housing in Chennai?

Chennai is one of the prominent cities of Southern India and it is growing at a rapid pace. The IT boom has reached the city too and many parts of the city along the Old Mahabalipuram Road are coming up as IT hubs. Chennai is also touted as the Detroit of India as it produces about 40 percent of the cars in India. Foreign automobile makers such as Renault and Nissan have their factories in Chennai. Therefore, the number of people buying property in Chennai has gone up quite drastically. The demand is mainly for affordable housing which will be near one’s work place and have all the amenities that are required for stable living.

The decision of a home buyer is much governed by his ability to pay. Most home buyers hunt for apartments which are closer to one’s work place and much within their budget. Here are some localities listed where you can buy affordable housing for all. Some of the residential localities where buyers prefer to invest are located near IT establishments.

Under Rs 20 lakhs

Those who are looking solely to invest and want to start with a low budget can invest in Guduvancheri, Oragadam, Sriperumbudur and Thiruvallur. Those who are looking to invest in these areas generally prefer to buy plots.

Guduvancheri is located on south western fringes of the city and it is much preferred by home buyers because of the closeness of the area to the IT hubs which are located near the Old Mahabalipuram Road, abbreviated as OMR and other affordable housing areas. It is one of the biggest residential areas between Chengalpet and Tambaram and has not only a lot of tech employees but also students living here because of the closeness to centres of higher education. Guduvancheri is also a popular locality because of its proximity to the Great Southern Trunk Road or the National Highway number 45. The stretch is coming up rapidly because of the presence of a SEZ corridor, and connectivity via air, road and rail. Even though the demand in the area is quite high, the supply is not which has led to a shift in demand for plots to apartments. There are almost 13 new projects that have come up and they are expected to be completed within 2015.

Residents of Guduvancheri reiterate that the locality has progressed at a very fast pace in the last five years and would continue to grow at this pace as price of land is still quite attractive for buyers of middle income group.

Oragadam and Sriperumbudur: Mainly because of the possibility of development these two areas are gaining in capital values. A lot of industries are contemplating the setting of base in this area. Most industries are dependent on land availability and buyers can bank on the fact that more jobs shall be created. The 2014 Budget has emphasized on the upgrading of the Chennai-Bangalore Industrial Corridor along with a Peripheral Ring Road for Chennai. The latter project has been announced keeping in mind the aim of connecting important industrial centres such as Sriperumbudur, SingaperumalKoil, Kattupalli, Thiruvallur, Periyapalam and Thamaraipakkam. Both the areas of Oragadam and Sriperumbudur have received attention from NRIs too.

FMCG, software, manufacturing and electronics have all marked their presence in this area. Moreover, the green field airport would be of much benefit here. However, what must be paid attention to currently is the commercial development of Oragadam and Sriperumbudur.

 All of the areas mentioned above are slowly acquiring the necessary social infrastructure. These areas are developing hospitals, schools, colleges, and road and rail connectivity. However, the price variations that come up would depend on whether the developments are plotted with adequate sewerage monitoring and drainage, parks nearby, electricity supply and roads that have been laid out well. Both 2BHK and 1 BHK flat in Chennai are available here under Rs 20 lakhs.

Within a budget of Rs 20 lakhs and Rs 40 lakhs

Medavakkam, Ambattur and Urapakkam are some of the localities which you can consider within this budget. Urapakkam is of much interest among investors because of its closeness to the OMR in South Chennai which has a lot of IT establishments. Also, it is counted among an employment generation centre which is why many non-IT people are also thinking of buying apartments here for rent which is leading to the multiplication of demand soon.

Those interested in buying property in Medavakkam should be happy to know that it is a part of the top 10 localities that people want to rent or buy an apartment. Its proximity to the IT corridor has made investors keen to invest in this area. The locality has got paved and wide roads, improved connectivity via the Thorrapakkam Road and Pallavaram and Tambaram-Velachery Road. The making of the monorail has also made a lot of buyers enthusiastic regarding improved and quick connectivity. The area is situated at the centre of suburbs that are developing such as Ottiyambakkam, Sithalapakkam and Ponmar. Shopping areas, transport and other aspects are much convenient from this location.

Anna Nagar’s loss can be considered to be Ambattur’s gain. The capital values are quite high in this area and many people have moved from the former area to the latter. The area is relatively affordable although the roads need work on them. Builders have taken much interesting in designing projects for this area and the availability of land parcels has encouraged builders to take up their projects further. Ambattur is being developed mainly in the 2BHK format although some apartment complexes are coming up with 3BHK apartments. Several builder floor apartments are also coming up with 1BHK flat in Chennai Ambattur. The 2BHK flats are mostly sized between 800 sq. ft. to 1200 sq. ft. while the 3BHK ones start from 1000 sq. ft.

Those looking for good housing in neighbourhoods that have social infrastructure such as colleges, schools, shopping centres and restaurants in place could opt for these areas as they are rapidly developing and are connected well with other areas.

Where in Hyderabad Can You Buy Flats for Rs 30 Lakhs?

A lot of people come into Hyderabad to work in the IT sector. There is high demand for affordable housing among such people. The areas of Nallagandla and Nallakunta have housing options which are within a budget of Rs 30 lakhs. Here is a discussion on them.

Nallakunta

Nallakunta is known among all as the Hyderabad coaching hub and it is located on the city’s fringes. However, it was quite popular among house buyers as properties are much affordable in this area compared to the other established neighbourhoods in Hyderabad viz. Kondapur, Kukatpally and Gachibowli. Most of the apartments available are of the 2BHK and 3BHK types. For an apartment of size 2BHK, you would have to spend at least Rs 30 lakhs while for a 3BHK apartment the price may go up to Rs 50 lakhs.  A few 1 BHK flat in Hyderabad are also available here for less than Rs 20 lakhs.

Areas like Gachibowli offer similar 2BHK flats for more than Rs 40 lakhs while in Kukatpally and Kondapur, the starting price of 2BHK apartments is around Rs 35 lakhs. Closeness to commercial areas, affordable properties, established infrastructure and educational institutes are some main reasons which drive realty in Nallakunta. Located towards the north east half of Hyderabad, close to Osmania University, Nallakunta is known to have coaching centres for MCA, MBA and IIT. Many students come in from other states or cities for studying here which is why rental demand is very high in these localities.

Therefore, those looking to invest in Nallakunta would receive good rental returns. For a 2BHK flat, you can earn Rs 10,000 to Rs 12,000 in a month, depending upon the amenities and furnishing being provided. For 3BHK units in a month, roughly Rs 13,000 to Rs 17,000 can be commanded in a month. A 1 BHK flat in Hyderabad can be afforded at under Rs 10,000 in a month. Mostly service class people live in this area as they are employed in the coaching centres or commercial area of Banjara Hills which is only 10kms from here. Located at a distance of around 7kms from the area of Nallakunta, is Uppal which has numerous governmental agencies that employ hundreds. These people look for housing here because the properties are affordable and their development is multi-dimensional.

Many families choose to buy apartments in Nallakunta because Warangal is easily accessible from here. Nallakunta lies on the Bhopalpatnam- Warangal-Hyderabad Road which converges to the NH202. Mainly for its housing Nallakunta has gained prominence as it is affordable and self sustained. There are several educational institutes here which have driven up Nallakunta real estate.

New and Old Nallakunta 
 
Nallakunta has been divided into two segments of New and Old Nallakunta. The old Nallakunta area has coaching centres and commercial buildings whereas the new neighbourhood has housing societies which offer apartments. The New Nallakunta Main Road has a railway line also passing through.

Infrastructure of Nallakunta

The civic and social infrastructure of Nallakunta is quite self-sufficient because all the facilities and amenities are there in the locality. Hospitals, schools and colleges are all there within a radius of 2km. Nallakunta is quite a shopping destination for families because of the widely spread retail market of the area. This also acts in favour of the area. Nallakunta is only a 10 minute walk from the Vidhya Nagar Railway Station. Areas such as Adikmet, Chikkadpally, Amberpet, Shanker Mutt and Shivam Road can be approached via local trains. Aside from this, the APSRTC or Andhra Pradesh State Road Transport Corporation’s bus services can also be availed for travelling to other parts of Hyderabad.

Nallagandla  

Those on the look out for spacious property within an affordable budget should consider Nallagandla as the ideal destination. The area has large 3BHK units on offer whose prices begin from Rs 40 lakhs and it is the most budget-friendly locality close to commercial markets of the finance district and Gachibowli.

Where is Nallagandla?  

Nallagandla is located between BHEL and Gachibowli. It is also between the two most important arterial roads of Old Mumbai Road and the Outer Ring Road which connects the area to the main city and other important areas such as Banjara Hills and HITEC City.  
Most of the flats offered in this area are two bedroom and three bedroom units. The price of 2BHK apartments in this area is around Rs 30 lakhs for an area of 1000 and 1200 sq. ft while for 3BHK apartments is Rs 40 lakhs. These apartments usually begin from 1500 sq. ft. Most of the flats available are semi-furnished along with moderate woodwork and marble flooring. Most of the projects are under construction still but some properties are ready to be possessed in the area. Most people buying property in this area are end users although there are several investors in the area too who have invested here for cashing in on rental returns.  
The rental values of flats in Nallagandla are quite high. For a 3BHK apartment in this area, you can earn anything between Rs 12,000 and Rs 24,000 in a month, depending on the amenities offered and furnishing. Even though most of the purchasers in this area are IT employees, several government officials who work for BHEL have also bought property here.

Why Should You Choose Nallagandla?

For most home buyers in this area, Nallagandla has been a secondary choice as the nearby area of Chandanagar has better connectivity and infrastructure. However, with newer residential development, social fabric bettered in the area which led to improved amenities, better roads and other necessities. There is still a lot of green area in Nallagandla because it is still developing. Basic amenities such as ATMs, grocery shops, colleges and schools are available here which is why the area is livable. Other areas which are close by are Gachibowli, Beeramguda, Kukatpally, Miyapur and Nizampet. The Nallagandla Lake is also a point of attraction in this area.

The locality is only 1km away from Lingampally Multi Modal Transport System station which makes its connection with other important junctions much improved. Companies which are located in this area offer taxi services to residents of the area. Traffic free roads and easy conveyance makes commuting much comfortable for those going to the Hyderabad Railway Station or the Shamshabad Airport.

Bangalore Tops Cities in Terms of Capital Appreciation

Real estate has always been considered to be one of the safest investments to make because price of land appreciates over time. The gain in capital values of land outweighs returns from other forms of asset and it is a secure one. For a very long time, Delhi NCR and Mumbai have provided buyers of property with the best possible appreciation in capital value. Post downturn years, the cities dominated by the IT industries such as Pune and Bangalore have moved ahead of the traditional cities when it comes to capital appreciation for residential properties. 

Data should that the maximum median capital appreciation has been clocked in Bangalore in the middle income residential segment of forty one percent between the first half of the year and the next period of the same year. The city that came in the second position was Pune with 28 percent. The increase in capital values for the premium properties in Pune was around 39 percent while in Bangalore it was 37 percent. Pune had topped the list for the country. As there is a lot of disparity between comparisons of residential prices in every city, it was classified that a property would be a mid income one if its capital value was less than Rs 5000 for a square minute. Anything higher than that would be premium property.

In terms of affordable housing and premium housing, Mumbai and Delhi NCR are towards the bottom of India’s well performing realty markets. Usually Delhi NCR and Mumbai have done well in the higher end segment but this time there was a 24 percent capital appreciation only. The two cities fell behind the affordable property market of Kolkata as well, which clocked in at 26 percent.

Markets which are driven by end users in Pune and Bangalore have exhibited the maximum mean rise in capital values whereas markets driven by investors such as Mumbai and Delhi NCR have not done very well. In the last three years, the IT sectors of India have shown a growth trajectory which has given rise to salary scales and job possibilities. There is a logical and distinct correlation between appreciation of property prices and the IT sector in the country. Metro areas which are largely dependent on the IT sector have seen a fair, consistent and generous demand for luxury and middle income housing. Cities driven by the IT sector are more evolved in terms of aspiration levels among house hunters, including increased exposure in international housing, improved purchasing power and standards or luxury along with awareness regarding environmental sustainability and other contemporary ideas.

Between the years 2008 and 2010, the prices of real estate in Pune and Bangalore had steadied which made the realty markets of these cities appear stagnant. Delhi NCR and Mumbai on another hand were peaking in terms of property prices. Pune and Bangalore have also gained from the NRI segment along with funding from private equity companies as Delhi NCR and Mumbai became unproductive.  Currently, Mumbai and Delhi NCR are facing price correction and stagnation.

The market for property in Bangalore has attracted the most amounts of private equity or PE investments in India in the former half of 2014 and has defeated the Delhi NCR region along with finance capital of India, Mumbai. There is very high demand for commercial and office spaces along with steady housing demand which has made the realty market of the city see PE investments elevate by almost 20 times year-on-year to roughly Rs 2005 crores. In the first 6 months of the year 2013, Bangalore had received private equity investment of almost Rs 103 crores. The real estate investment received by Mumbai has been around Rs 1140 crores while NCR Delhi has received Rs 490 crores and Chennai has received Rs 200 crores in the same period. Mostly availability of office assets on lease and steady yields has positioned interest level high.

The private equity investment share is expected to be significant in the years to come in Bangalore. A lot of the assets have very high occupancy rate and shall offer stable yields of roughly 9 percent that make them much attractive to investors. A 100 crore non-convertible debenture has been struck by Piramal Fund Management with Century Real Estate Holdings on 2 projects in the Garden City. This Tata Capital preceded this deal by investing almost Rs 470 crores for roughly 15 percent shareholding along and board seat in Vaswani Group and Shriram Properties which has raised Rs 100 crores almost from JP Morgan. Underwriting projects in Bangalore is easier as ticket size is quite reasonable. Almost 1 to 2 transactions are closed in a month although a reverse challenge in velocity is there of which one has to be careful. Piramal Fund Management are thinking of investing Rs 300 to Rs 400 crores for each deal in Bangalore, compared to earlier investments of Rs 100 crores.

 The Red Fort Capital group is making mid income projects which are priced between Rs 60 lakhs and Rs 4 crores as their targets in Bangalore. Even though the NCR Delhi and Mumbai are high margin and value markets, the most stable market that is driven by end users is Bangalore. Capital being churned around in the city is also quicker than other markets.

Some companies which are seeking transaction opportunities in the Garden City are MotilalOswal Private Equity, Milestone Capital Advisors, ShapoorjiPallonji, Blackstone and Xander. Milestone Capital Advisors invest almost 30 to 40 percent of their whole fund outlay in property in Bangalore and they are also evaluating numerous transactions for their latest Rs 500 crores fund which shall be launched in the next few months.

Market for property in Bangalore is growing as a number of projects have been started in different areas of Bangalore such as HSR Layout, Whitefield, and Bannerghatta Road etc. Infrastructure projects such as widening of roads and completion of various phases of the Metro Railway have also inspired investor and end buyers’ confidence which is why the market for property in Bangalore is booming.