HYDERABAD: With the government finally passing the separate Telangana Bill, property buyers can cheer as realty prices could be in for a correction.
While a section of the industry including Credai assert prices are already at rock bottom and may only go northwards, others feel, a revision in property prices is inevitable.
“Rates are likely to fall at least by 20-25 per cent in locations like Miyapur, near Outer Ring Road, Shamshabad, Medchal and Uppal,” said C Sudhakar, MD, Chakilam Constructions.
According to Sudhakar, who used to develop 4-5 properties at any given time a few years ago, is now handling only one project at a time owing to bleak demand. He claims to have unsold stock of over 30 per cent.
The real estate sector came under sharp focus when a separate Telangana proposal was announced in December, 2009.
Since then, prices of both commercial and residential property reduced by almost 30 per cent in several areas including upcoming locations like Gachibowli, Miyapur and Kondapur.
“This was due to slowdown in economy, downturn in the real estate market and due to uncertainty over bifurcation,” said C Shekar Reddy, National President, Credai.
He, however, added that there won’t be any drop in prices as they were already at rock bottom compared to any other metro.
“The overall trend has remained conservative in the past few years and with uncertainty put to rest, the industry expects momentum in property buying,” he added.
Similarly, rental values of office, retail and residential places also fell by nearly 25 per cent. While rentals are witnessing an upward momentum, property buyers, spurred by the separate statehood issue, are still holding on to their plans anticipating further fall in prices.
Upcoming residential precincts like Madhapur, Gachibowli and Kukatpally are expected to register a moderate revision in prices.
“Commercial property market too was dull over the past few years. This was both because of the market slowdown and uncertainty within the State. Now this will change, ” Sudhakar said.
The adoption of Telangana Bill will help boost real estate market in Hyderabad, says Ganesh Vasudevan, CEO, Indiaproperty.com.
In the last 12 quarters, the real estate market in Hyderabad has constantly seen a fall due to the uncertainty over Telangana. Now, since Hyderabad will serve as capital for both the states, it is expected to benefit real estate, he said.
Both the state governments will try to raise the flagging profile of Hyderabad, and if this happens, one can expect the city to regain its sheen as one of the premier IT hubs in the country and a proportional increase in residential demand would be seen, Vasudevan said.