Home buyers adopt wait-n-watch attitude!

Govt scrapping GO brings sea change in home buyers’ attitude
They are assessing realistic situation
They prefer to build home in an acre rather building a home in 1000 square yards

The offices of the Sub-Registrar are full with the people seeking to register their property till the other day. However, the crowd is missing at these offices nowadays. The number of property registrations has come down drastically. Market experts attribute the change to the government withdrawing the GO No.111. But, is it true?

Realty sector is always dependent on demand-supply principle anywhere. Till yesterday, the sites in Western Hyderabad enjoyed huge demand due to shortage of land. It is difficult to find sites that are free from legal wrangles. Because of this reason, the price per sft has touched Rs 10,000-mark in areas like Madhapur and Kondapur. The areas adjoining Gachchi Bowli are commanding Rs 8000 per sft. The cost of construction is stated to be high in Kokapet and Financial District too.

Government withdrawing 111 GO has fuelled new ideas among the buyers. Withdrawal of the GO brings over 1.32 lakh acres into the real estate market. Even if 50 per cent of the landed areas is allowed for construction of houses, over 30,000 acres of land is likely to be made available in the real estate market. If the supply increases, demand diminishes, going by the principles of economics. Therefore, experts predict that the prices will come down in surrounding villages affected by the GO No. 111.

The buyers are treading carefully adopting a wait-and-watch attitude. Do you what is going on in their minds?

Mokila area is located very close to the Financial District. A square yard there sells at Rs 50,000. Some people have bought 1000 square yards in a villa community in the area. But, some of them cancelled their bookings recently as change of mind would have it.

They want to buy an acre of land for more or less Rs 3 crore and have drawn up plans to build a villa with a plinth area of 5000 sft by spending another Rs 1 crore. Even after building a luxury villa, enough space is left all around. In the space, the people have plans to develop greenery. In the changed scenario, the people thinking along these lines are increasing.

People say no to large flats

In Kokapet and Financial District areas, there are over 3000 flats with plinth areas admeasuring 4000 to 5000 sft. Those who have booked the flats in these areas, attracted by low cost, are reconsidering their decision, according to market experts. These people have been adopting a wait and watch attitude till a clear picture emerge following withdrawal of the GO NO. 111.