Hyderabad News. Lanco Hills price crashes down to earth from the skies. Flats once sold as high as Rs.4500/sft is available NOW at Rs.3000/sft from Lanco
Hyderabad News. Exclventures 16.03.10
Note: Lanco has raised rates to Rs.3200 to 3400/sft from 1st April 2010
(Excl Ventures News.)
Lanco Hills which is building Hyderabad's most sought after high-rise destination (once upon a time!), has found the going tough with the impact of global recession followed by Telangana agitation, crippling sales.
The Company was unable to make any significant sales during last one year. Instead of fresh sales, the existing buyers who booked flats at figures as high as Rs.4500/sft during launch phase in 2007, have been clamoring for cancellation and refunds.
The flats which were kept unsold in 2007, with the hope of selling at higher rates when construction is complete, has become a liability to the company like many other builders who followed the same strategy
With Aparna offering flats at Rs.2800/sft at Nallagadla, Lanco's crashed price offer of Rs.3000/sft at the grand location, looks alluring. Its not sure how much the extras would amount to. But it should be in the range of Rs.700 to Rs.1000/sft
The Lanco rate is now much cheaper than L&Ts and almost equivalent to Ramky Towers. The crashed rate of Lanco may shake up the integrated apartment market rates, in Hyderabad.
People who were hesitating to go to Aparna Nallagadla or put money on Ramky Towers, may in fact quickly jump to Lanco. Obviously these projects, apart from other high-end properties like Nagarjuna Residency, Ambience Botanika, Lodha Towers etc will be under tremendous price pressure now.
Larger flats in Manthri Celestia will also be under pressure, since Lanco offers far better quality specifications, less congestion and much lower common area percentage and earlier delivery.
While several builders have ditched buyers by stopping construction and putting their projects in limbo, Lanco has been developing the project non-stop. Though the commercial amenities like malls etc which were the selling points are unlikely to materialize for a number of years, the buyers could get possession of flats by last quarter of 2011. (Lanco is offering delivery by August 2011 itself). Its to be seen what amenities would be available for owners, by that time.
The initial buyers in Lanco need to find solace in the fact that all realestate investments are risky and it could always be a hit or a miss. The global economic woes or Telangana agitations are not within buyers' control.
For new buyers it looks like a good opportunity to show how smart they were, by avoiding the urge of buying in 2007!
Looks like a master stroke. The rate of Rs.3000/sft for a project at such grand location with great spec, amenities and real construction progress, may in fact trigger price cuts by others. "Buyers days" seem to be never ending in Hyderabad!
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