Hyderabad: After witnessing a boom for six years in Hyderabad real estate, the costs of lands and apartments have increased tremendously and hence they become beyond the reach of many people resulting in the fall of registration of flats and plots.
The buyers are waiting for the prices to fall. Many people who were purchasing the lands and homes as investments are in a state of shock by seeing the current situation in the market.
The first half-yearly report of the Knight Frank Residential Market 2021 indicated the changing scenario in real estate.
The number of unsold apartments in the first half of 2020 was 4037 while the number in the first half of 2021 is 11918 which is a cause of concern. There is a refrain: will the cloud of sluggishness in Hyderabad real estate clear?
According to the above report, the demand and supply in comparison to the first half of 2020 have increased in the first half of 2021. The first quarter of 2021 has recorded an increase in the sales of apartments while the second quarter of the year has witnessed a continuous decrease in launches and sales.
The buyers are hesitant to purchase due to the high prices of the land costs.
The government revised cost of land in Gandipet is Rs. 17000 per square yard while the landowners are seeking Rs. One lakh per square yard.
Similarly in Saroornagar, particularly on Sagar Road’s Champapet side the landowners all demanding Rs 1.5 lakh per square yard whereas the government revised cost is Rs 28,000 per square yard.
According to the director of Aparna Construction, Hyderabad real estate is witnessing sluggishness during the last 6 months and he said that due to the tremendous increase in the cost of registration charges the buyers are not coming forward.
Moreover due to the increase in stamp duty charges at 1.5% the buyers are only purchasing the units in the range of Rs 50 lakh to Rs 1.10 crore while there is no trend in the purchase of housing units more than this price.