No impact of upcoming polls on home-buying decisions: Realtors
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Hyderabad:The upcoming Assembly Elections in Telangana has no impact over the property purchasing decisions, say realtors in Hyderabad. They are optimistic about the growth of the city irrespective of the political situation. According to them, the city real estate sector is recording sales of over 36,000 residential units per annum over the last few years, apart from open plots.
“The city is gaining confidence of both domestic and international investors. Every month, we are seeing at least 2-3 companies are coming here to invest. This is generating more employment which will further boost up the real estate sector,” Vijaya Sai Meka, Secretary General of NAREDCO Telangana and Managing Director of S&S Green Projects,told Bizz Buzz.
“All the previous and existing governments that ruled Hyderabad have focused on further development of the city. Till now, there was not even a single project reversal in the State. So, there is no fear factor among the property purchasers to hold back their buying decision till the Assembly Elections get completed,” he said, when asked about the impact of approaching Assembly polls on realty sector.
Speaking on the same issue, NAREDCO Telangana Executive Vice President and Megasri Constructions Director K Sreedhar Reddy said, “Almost 80 per cent of the home buyers in the city are end-users, only 20 per cent are investors, including high net worth individuals (HNIs) and non-resident Indians (NRIs). Elections and political speculations have nothing to do with end-user market.”
“Hyderabad is still an affordable real estate market when compared to other cities. The prices of residential units in the city start from around Rs 5,000-6,000 per sq ft whereas similar sized flats are not available at that price even in tier-2 cities such as Pune or Indore. Leaving the West Hyderabad, the property rates in other parts of the city are within the budget of middle-class buyer,” he opined.
Suggesting a solution to the rising property prices in Hyderabad, Vijaya Sai said: “Skyrocketing land rates act as the major hurdle for affordable housing in the city. By providing subsidy on land in a good area, the government shall come forward to invite builders to develop projects under PPP (public-private partnership) mode to offer quality accommodation to people.”
“NAREDCO Telangana members are ready to work with the government on such PPP schemes. Without the support from the State, it is impossible for private developer to deliver affordable homes in areas like Kokapet or Raidurg. Reducing the size of the residential unit is not a good idea. Already, we have witnessed reducing demand for 2BHK units and zero-sales of 1BHK units in the city,” he informed.
NAREDCO Telangana is a 27-year old association formed to represent and co-ordinate the efforts of real estate developers. It serves the State interacting with the government on behalf of the industry to co-ordinate with policy making authorities in evolving and implementing real estate friendly policies and service delivery systems in order to stimulate development.
NAREDCO Telangana has 350+ members in Hyderabad alone. It has recently opened a chapter in Warangal and planning to set up another chapter in Karimnagar. Its vision is to encourage growth of real estate sector through contributions for framing conducive policies and encourage new technologies, promotion of primary demand and bring transparency in the real estate sector.
