Aditya Homes MD V KotaReddy
(KING JOHNSON KOYYADA)
Luxury villas are turning out to be hotcakes of Hyderabad’s real estate market and getting sold within no time after they enter the market. Latest example is the Aditya Reserve villa project by Aditya Homes Group at Narsingi where 40 villas were sold within 45 days after the project obtained RERA approval. At least 40 others are waiting for their turn to own a property in the project. With just two villas per acre land, each triplex villa is being constructed in about 900 sq. yards, with a construction area of 10,000 sq.ft.
Sharing his experiences, Aditya Homes managing director V Kota Reddy spoke exclusively to Real Estate Guru (REG) on various projects taken up by his company and new trends in the real estate sector of Hyderabad after Covid-19 pandemic. He also announced that adjacent to the current villas, the construction of second phase of villas will start within six months in Narsingi. Excerpts from his interview.
The demand for luxury villas has grown significantly in Hyderabad after the Covid second wave. There is an increasing number of buyers seeking spacious villas in the luxury segment. Many home buyers in this segment, who have been delaying purchasing a home for themselves and were investing in other avenues, are finally opting to purchase their dream homes in the wake of changed circumstances. Catering to their ideas, 30 per cent open space has been left out in all the 40-villa triplex villages of Aditya Reserve project spread over 17 acres i.e only two villas are being constructed per each acre.
Six new projects
Aditya Homes is coming up with six new projects. The 80-flat luxury project of Lee Grandeus near Ramanaidu Studio in Filmnagar has been completed, where 75 per cent of flats have been already sold. We plan to hand over the flats in next October. The price is Rs 12000 per sq.ft. Another project, Aditya Athena, also has been completed and will be handed over in next October. Apart from these, we are planning to launch some other projects. We are coming up with a 40 luxury villa project called Hidden Cove in about 14 acres in Mancherivula and a boutique villa in five acres. We also have plans to take up construction of an iconic structure of 33-storey near Narsingi junction. About 20 lakh sq.ft of space will be developed for construction of total 350 flats spread over 10 acres.
A Challenge
Supply of houses is on the rise in Hyderabad’s realty sector which is plaguing the industry right now. Therefore, it is best to exercise self-control to keep supplies in check. Instead of undertaking a large number of constructions on their own, one should proceed only after thoroughly studying the course of the market. As for me, I am currently planning only one vertical structure. High-rise structures can be developed in the luxury segment, but there is a risk of maintenance if affordable housing is planned.
Completely opposed to UDS
Personally, I am completely opposed to UDS sales. It is absurd to start projects by collecting money from people. If needed, one should start construction of the housing project and then sell the flats or homes for pooling money. It is unprofessional and unethical to collect money from prospective home buyers through UDS sales even before commencing a project. It means such a company is financially weak. People should think twice before investing in such projects. I strongly believe that a construction project can be successful only if at least 50 percent of the project value is in hand or are able to mobilize funds. If the developer is not financially sound and start a project, such projects will collapse in midway or may even remain as non-starters.
What if the project is abandoned in the midway?
Due to UDS sales, people without adequate experience are entering the real estate sector and when they fail to execute the project, they would only bring a bad name for the construction industry. Therefore, people should take a thorough look into the history of the developer before buying flats, inquire about their previous projects, and whether they were delivered promptly, among others. One should not purchase properties just because they are being sold for lesser price.
It is my personal opinion that it would be appropriate for the government to impose restrictions on FSIs to reduce skyscrapers mushrooming in the city. Otherwise, the pressure on infrastructure will increase exponentially. High impact fees should be levied on skyscrapers that are more than 20 storeys high. Iconic buildings must be developed at a few places, but every building cannot be an iconic structure. Only the land owners will benefit largely from such skyscrapers, while buyers have to wait for five-six years to take possession of the properties.
Burj Khalifa is a failure
Burj Khalifa could not succeed in a city like Dubai, a strong international economic hub. How is it justified to construct a skyscraper along every 100 feet or 120 feet road? Would it be difficult to even paint or address any technical issues in future? Moreover, we do not yet have mechanism to maintain skyscrapers. Finally, those who buy flats with their hard-earned money must take a step forward only after ascertaining the full history of the developer.
