My Home Constructions, part of the ₹5,000-crore My Home Group, is on a high growth path. It is developing 20 million sq ft in Hyderabad, which is equal to the figure it has built in its three decades of existence.
“This makes us the biggest construction player in Telangana, in general, and Hyderabad, in particular, ‘’ My Home Group Chairman, J Rameswar Rao, told BusinessLine in an interaction here.
Of the 20-million sq ft lined up for development over the next four years, 16 m sq ft will be residential projects and 4 million commercial spaces, including a special economic zone. The strength and confidence of the Group to go aggressive in a market, which is still subdued, is based on the huge land bank that it has accumulated over the years and the right strategy that is driven by the local needs, Rameswar Rao explained. “We are sure to complete 3.5 million sq ft residential properties and hand them over to buyers before December this year”, he said.Investment plans
The zero-debt, cash surplus group is not keen to raise funds from private equity or venture capital at the moment. It will fund the projects through internal accruals, apartment bookings, and in some cases, short-term loans from banks, Rao said. The construction company has made investments to the tune of ₹4,000 crore in different projects, including over ₹1,500 crore in its marquee project - My Home Bhooja.
“For us, the 36 floor, Bhooja is an iconic project, as it also will be one of the tallest residential towers in all of Hyderabad coming up in the IT hub, Hitech City,’’ he said.
The project is fast coming up on a 32-acre plot. It will have 400 flats in phase-I. The project will combine the exclusivity of a villa with luxuries of a five-star hotel, and a club house of 80,000 sq ft,’’ said J Shyam Rao, Executive Director, My Home Constructions.Market trends
Asked about the real estate market in Hyderabad, Shyam Rao said local customisation in the construction aspects of buildings was a key element for success.
“Many construction giants, who came to Hyderabad from western and north India, could not make a mark here as they failed to understand the local taste. Here, the Vaastu plays a key role. Our primary focus has been the location and Vaastu compliance,’’ he said.
In terms of prices, Rao said there was no appreciation of real estate post 2008 for various reasons but post 2014, after the formation of Telangana State, market sentiments have been improving.
Compared to any other metro/city, Hyderabad real estate market is still affordable, Rao claimed as even the top-end/premium residential properties are available in ₹6,000-₹8,000 range unlike in other cities.
“In addition, there is ample availability of land here. We expect 8-10 per cent appreciation in next five to six years on a modest note,’’ Rao said.