Hyderabad Real Estate Impact – 1 month since the decision to form Telangana State

(Excl Ventures News.)

(Hyderabad) It was on 30^th August that the Congress was forced to accord approval for formation of Telangana State. It was expected that the State Legislature will meet and pass a Resolution Recommending the Formation of the new State. However nothing of this sort seem to be on the cards with congress legislators and MPs fighting among themselves.

Though the Party has taken the final decision & digested the Rasagulla, a major section of the party men find it stuck in their throat. Its neither coming out nor sliding down and it tastes bitter to boot! The taste contributed by thought of their bleak re-election prospects!

Its important that people give these leaders enough time, to reconcile to the situation. The strikes in Government Offices, APSRTC etc are ways to help them feel comfortable since it gives an impression that people are with them and they could get re-elected!

The inaction to proceed with the steps related to division is delaying the whole process and the market remains dull. No one wants uncertainty. If once-and-for-all, the process is completed or there is visible progress to achieve the target, market will improve.

Current Situation:

HMDA / GHMC: Both offices have been paralyzed by strikes and there is pretty little happening on Project Approvals. So brace up for approval delays.

Real Estate Rate: Prices of Apartments, Villas, Plots and Land remain stable. There hasn’t been an reductions reported

Buying Activity: Based on feedback from several builders, there is reduction in enquiries & conversion

Immediate Future: If the demand remains low for say 6 months to 1 year there could be some reduction. This is how it happened previously when the city faced agitations. Prices do not fall all too sudden. It takes time. Builders will naturally hold on and try and weather the storm, as much as possible.

Individual negotiation: As of now, in general we don’t see builders agreeing to “talk” regarding major reduction or deals.

Future Prospects: If Builders hold the prices for a year and more, instead of reduction, buyers will actually face rate increase. Obviously, there can be 10% increase due only to inflation alone and over that additional increase.

Its impossible for buyers to identify a property and wait for the dip, to buy it. That never really happens, in practice. By the time a new one is reviewed and decision taken, price would have moved up or rupee strengthened.

Rupee Depreciation: The Real Estate prices now in Hyderabad is the same as the rates few months ago when Rupee was at 55 to a $. At current levels of around Rs.67 to a Dollar, NRIs save 22% RIGHT now in Dollar terms! It’s time to think and take quick decision to buy.

Comment : NRIs should Convert Rupee Depreciation to their advantage. As and when "Offers" on new projects come, go ahead and pick up.
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