Six years wait to sell New properties?

King Johnson Koyyada: How many apartments are being built in Hyderabad every year? What is the number of flats in these projects and how many builders will complete them? It is difficult for anyone to answer these basic questions raised by genuine home buyers. It has become nearly impossible to estimate the number of projects being approved within the purview of GHMC and surrounding municipal corporations/municipalities as well as HMDA area. Even the municipal authorities are not in a position to confirm and one can forget about the builders associations where each member quotes a different number. As a result, people will be left in confusion.

But here is the summary of the current real estate scenario in Hyderabad. An estimated 30,000 flats are sold annually in Hyderabad’s realty sector. In addition, small builders are reportedly selling another 10,000 flats. But nearly 2 lakh flats are under construction in Hyderabad city and its peripheral areas. Adding to the chaos is the UDS and prelaunch builders who are said to have taken advances from buyers to construct around 50,000 flats. Considering the annual sales, it would take at least six years to sell all the flats which are under construction. Projects like Aliens Space Station would take more than 10 years. Therefore, people who are buying flats in under construction projects, must be prepared that the project would be delayed.

Is there a 70 percent price rise?

Over the last couple of years, land prices in and around Hyderabad have skyrocketed. Even during the Corona period, some realtors and middle-men raised prices. While they claim that the land owners have increased the land rates, the land owners say that they are increasing prices because buyers were ready to buy. In the melee, the middle-class people have reached the misery of not being able to buy their own house. Till four-five years ago, a double bedroom flat coated nearly Rs 40 lakh on the city outskirts. But today, one cannot find a quality flat for even Rs 70 lakhs. In the meantime, the salaries of employed home buyers have not increased significantly during the period.

So what are the reasons for the staggering rise in prices of plots and flats in Hyderabad? Real estate developers cite the thriving Hyderabad and its development as a reason. But should we believe this argument? Has the advent of metro rail, construction of some flyovers, and slip roads in other places, have triggered exponential growth of the city?

Rs 8,500 per yard in Mominpet?

Don’t be shocked after finding that land price is Rs 8,500 per sq.yard in Mominpet where the actual land rate is said to be around Rs 12,000 per sq.yard. But a realtor is selling them for a lower price under the popular UDS scheme, if the buyer is ready to pay cent per cent money.

However, people who are keen to purchase a home for themselves in close proximity to the city, should not get tempted and fall prey to these UDS/ prelaunch sharks. They must not invest their hard-earned life savings in such projects without verifying the veracity of the developer. Further, they must understand that notwithstanding the tall claims of the realtor, Mominpet is about 70 km away from Hitech City. One has to travel on zigzag roads, with meagre infrastructure. As some companies are paying huge commission upto 10 per cent to the middle-men, they are not hesitating to lure the buyers into buying these properties by making huge promises. Hence, people should not fall into such traps knowingly. People who invest in such projects, have to wait for not less than 10-15 years considering the slow-paced growth of infrastructure in the area.

Buying a plot or flat?

Have you decided to buy a plot or a flat? If so, don’t rely solely on the middlemen and instead observe the market closely. You may also consult a profession or Real Estate Guru. Enquire as to how much one invests on a plot in an area or flat in an apartment project, before coming to a conclusion.