Reg News: Prospective investors are advised against investing money in Hyderabad realty believing rumours. They should not give credence to rumours on land value appreciation in two or three months. If one observes the developments in realty sector here very closely, one can understand facts.
Hoping appreciation of plots or flat prices very soon, the prospective buyers should not buy property taking loans. For example, earlier there were reports about location of airport on Karimnagar road first and later at Dundigal, near ICRISAT at Pathancheru, at Keesara subsequently. The rumour mongers have floated the rumours. In areas where the airport is rumoured to be located, land prices appreciated two or three times before finally getting stabilised.
When the Hi-Tech city was set up in Madhapur in 1995, the cost of land was less than Rs 1000 per square yard, it appreciated to Rs 2000 per square yard in seven years. IT units located to Madhapur in 2003, the work force employed in them also has increased. Employees from other states also found employment here. Other business activity has picked up in the area. By 2008, a square yard in Madhapur was Rs 50,000 as against Rs 100000 now.
In 1997, an acre of land was priced between Rs 1 lakh and Rs 1.50 lakh in Maheshwaram. Following the real estate boom in 2005, people moved about in cars with money bags stashed in them to scout for land. Sales based on agreements were also struck at that time. In the process, cost of an acre reached Rs 60 lakh to Rs 1 crore. Hundreds of lay-outs were developed in the region. A square yard which was Rs 1000 then, now increased to Rs 7000. After a gap of 10 years, plots are being sold at Rs 16,000 to Rs 20000 per square yard.
People should not borrow money from others and invest it in house sites. If they have any savings, they can invest it in real estate. Only those who have lot of patience and adopt a wait-and-watch attitude should buy lands. Do not buy property on the basis of agreement. There were instances of such lands found to be locked in disputes.
When the real estate sector was in boom, the prices will go up and later settle down at a constant price. Then only, people would be able to find out the actual price. Therefore, those who invest their funds in plots should think twice before investing their money.
