Hyderabad: Residences in Upmarket areas illegally converted into Commercial houses
Posh residential areas in Hyderabad like Jubilee Hills and Banjara Hills are fast turning into breeding grounds for unauthorized conversion of residential properties for commercial purposes. Besides many illegal structures have also sprouted up. There have been many such instances in the recent past, with the Greater Hyderabad Municipal Corporation (GHMC) turning a blind eye to them.
Commercial viability prompts many owners to deviate:
Considering the fact that these areas are up-market residential areas, their commercial viability has increased many- fold, of late. This has prompted many owners to convert their residential properties into commercial establishments so as to tap into this lucrative market. Moreover, the proximity of these areas to other commercially upmarket areas like Hitech city has also resulted in this trend.
Similar trend seen in other commercial areas:`
In recent times, many MNCs as well as film production companies have set up their offices in these areas. Besides, many residences have been illegally converted into guest houses inspite of there being regulations in place against such practices. Such incidents have also been reported from other commercially prominent areas like Marredpally in Secunderabad. As per a survey conducted by GHMC in 2011, as many as 25 residential buildings in the city were being used for commercial purposes.
Building rules specified in GHMC ACT flouted:
According to the GHMC Act pertaining to building rules in the city, commercial activity is permitted only along 66 specified roads. This includes two roads in Jubilee Hills and three in Banjara Hills. Contrary to this restriction, many non-commercial roads in these areas are seeing increasing commercial activity, due to many residents flouting the corporation’s rules. Such occurrences are more prevalent in these areas mainly because of the high rental values that they command.
Complaints lodged not heeded by corporation authorities:
There have been several instances where residents of Jubilee Hills have lodged complaints with the corporation against their neighbours, for renting out their residences for commercial purposes. However, no action was taken by the authorities beyond issuing a customary notice to such residents. Moreover, it has also been seen that residential owners who have rented their residences for commercial purposes have been paying property tax as per taxes applicable for residential property. This is considerably less that the tax applicable for commercial property.
Illegal construction practices followed:
It has also been seen that many illegal practices are being followed by residents in Jubilee Hills and Banjara Hills. According to the special building regulations specified for these areas, only G+2 floors, upto 10 metres in height is allowed in these areas. However, many builders and owners, including government servants, have flouted these regulations by building additional floors without the approval of the corporation.
AP High Court directs corporation to take necessary action:
To reign in such irregularities, the Andhra Pradesh High Court, on December 16th, 2013, directed the corporation to file a counter within four weeks on petitions filed regarding illegal usage of buildings as well as unauthorized constructions in these areas. The GHMC is expected to file a common counter within the stipulated time regarding the steps being taken to prevent such deviations.
Impact on realty market:
From a real estate perspective of these areas, it is imperative that the corporation takes necessary steps against those guilty of such practices as well as to prevent such practices from occurring in future. If not, there could be an adverse impact on the residential realty market in these areas which already command high rental values. Any further increase in property values in these areas due to such wrong-doings of some residents will dent the image of these areas as prestigious residential localities.
