The bypoll results seem to have spelt doom for Hyderabads already turbulent real estate business.The Telangana Rashtra Samitis (TRS) extraordinary show in the elections left city realtors predicting tough days ahead for the sector,which has been struggling to survive for almost two years now. With the prospects of a separate Telangana becoming a lot more real now, analysts feared that even the 15-20 per cent revival in the market, witnessed over the last fivesix months, would soon cease to exist.
In fact some of the citys leading construction firms that had managed to remain afloat even through the T agitations were seen expressing serious concern over their future within minutes of the results being announced.
Apart from speculating a severe drop in demand,realtors feared that all their ongoing projects would be stalled indefinitely.There is huge pessimism among builders now.Though we had been doing just right we were hoping to do much better if all remained quiet on the T front.But that dream stands shattered now, said the managing director of a major construction firm adding, Even if a few seats had gone to Congress or TDP, there would have been some hope for us. But now,Telangana seems inevitable and our future looks as dark as ever.
Unfortunately for builders,the sector had only started to stabilise in the last quarter with inquiries and sales improving marginally.While the mid- sized firms registered returns between 10-15 per cent,the bigger ones netted almost 20-25 per cent.With the poll results out,analysts feel it would be difficult for developers to maintain these margins now.
It (poll result) is definitely bad news.The sector is sure to slip into another lull,even if it is only temporary, said Ashwin Rao,director,Primus Developers.Rao,however,admits that he saw this coming ever since T trouble broke out in the state.
If the bypolls have left the big and midsized companies shaken,it has given a severe blow to the smaller ones.With their sales figures remaining at the zero mark for over an year now,several developers are on the verge of calling it quits.
There seems to be no way out of this situation.Though some are trying to move to the Andhra region,there is no guarantee of better returns, said Venkateshwar Rao,a Kukatpally-based builder.His properties have seen no movement since the time the separate Telangana campaign kicked in.
Amidst such widespread pessimism,some industry experts still feel that the bypolls would have little impact on the realty sector.The prices have touched an all-time low. So,irrespective of the political situation,genuine buyers will make use of this and put their money here, said C Shekar Reddy,president, Andhra Pradesh Builders Forum.
Comment : Its high time people take it for granted that Telengana will be formed. Let the prices be discounted with that as the base and let market grow from there. Keyword Tags Hyderabad News,TRS, Real Estate Hyderabad. Telangana Issue, Hyderabad Real Estate News
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