Uncertainty Still Haunts Hyderabad Real Estate

After the new government came into power, the sale of residential properties has slowed down. It might be cyclical as buyers go on wait-and-watch mode, expecting announcement of sops. However, demolitions by Hydraa have aggravated the situation - Hitesh Kumar, Business Development Manager, Aparna Constructions

Hyderabad: Despite an increase in the prices of residential properties due to higher input cost, and higher interest rates on home loans ranging between eight per cent to 13 per cent, homebuyers came forward to purchase properties in the city till recently though there had been gradual slowdown. They majorly invested in the western part of Hyderabad. Real estate insiders say sudden and surprise demolitions taken up by newly created Hyderabad Disaster Response and Asset Protection Agency (Hydraa) hit the segment hard and uncertainty is still haunting the property market in the city.

“From the last one month, we can see the effect of Hydraa on the sales of residential properties. Prior to this, the three major contributing factors to the slowdown are high input costs, expensive home loans and slowdown in the growth of IT jobs,” Vijaya Sai Meka, president, Naredco Telangana, told Bizz Buzz.

It is said that regardless of clarifications and assurances from the Telangana government and concerned authorities on demolitions, the negative sentiment is still prevailing. “After the new government came into power, the sale of residential properties has slowed down. It might be cyclical as buyers go into wait-and-watch mode expecting announcement of sops from the new government. However, the Hydraa issue has deepenedthe slowdown, affecting the overall real estate market,” Hitesh Kumar, Business Development Manager, Aparna Constructions, said at recent Naredco Telangana property expo. Aparna Constructions has launched 15 apartment projects and four open plots over the last four years in West and North West side of Hyderabad. The realty major has managed to sell 60 to 70 per cent of the units in the projects launched between the year 2021-2023 and 10 to 15 per cent of the units in its recent launches.

Compared to other areas of the city, West Hyderabad, comprising of Financial District and Hitec City, and parts of North West Hyderabad, has been able to attract some buyers. Doctors, chartered accountants, senior leadership from multinational companies are driving sales of premium houses priced about Rs3 crore. However, luxury homes priced Rs4 crore and above are struggling to attract buyers, said Krishnamurthy, Sales Manager of 360Life.

On farm housing market, Raj Narayan, CEO of Silpa Infratech, said, “Farm housing concept is an evergreen market as the land value here has shot up from Rs11,000 in 2022 to Rs32,000 per square yard in 2024 at many places. Moreover, for people wanting to move out of crowded areas, existingOur Ring Road (ORR)has made commute easier. Upcoming RRR will further improve mobility infrastructure. We have five projects lined up, in which the available stock ranges from 25 per cent to 35 per cent.”