The recent cancellation of GO 111 by the State Cabinet has raised many questions about its potential impact on the real estate sector in Hyderabad. However, experts argue that the revocation is primarily a political decision coinciding with the elections, and its actual influence may be limited. It is crucial to note that the matter falls within the jurisdiction of both the National Green Tribunal (NGT) and the Supreme Court, with a pending case in the State High Court, which will ultimately determine the legality of the government’s decision.
- The courts hold the authority to assess the validity of the government’s actions.
- The High court should be appraised of the decision of the State Cabinet led by Chief Minister K Chandrasekhar Rao for further examination.
- Strong measures to safeguard the twin reservoirs must be prioritised and communicated effectively to the courts.
- Experts concur that the repeal of GO 111 is contingent upon the final verdict of the courts, underscoring the significance of their deliberation.
Cancellation of GO 111 raises numerous questions
The State Council of Ministers declared the revocation of GO 111, leaving many to ponder its implications on the real estate sector.
- Notably, certain areas such as Gandipet, Mokila, Moinabad, and Aziz Nagar near Kokapet have witnessed a surge in land prices due to artificial inflation by realtors and brokers. An acre of land in these regions already commands prices ranging from Rs 5 crore to Rs 15 crore.
- Despite soaring rates, some individuals, driven by unwarranted optimism of overnight miracles, are still inclined to purchase land without considering the potential consequences.
- Consequently, there has been a notable increase in inquiries about land prices and availability, with more people personally visiting the market to explore these opportunities.
- The government’s announcement has provided an avenue for increased land sales in areas previously governed by GO 111.
- This has triggered a rush among prospective buyers who fear lagging behind in development if they fail to secure plots promptly.
- However, it is important to note that the cancellation of GO 111 is unlikely to affect ongoing projects in Kokapet significantly. The infrastructure development in the GO 111 area will take at least a decade to reach the level of progress witnessed in Kokapet, even if the courts ultimately permit cancellation of the GO.
- Due to the cancellation of GO 111, there is a possibility that land prices will decrease in some parts of West Hyderabad. As a result, builders are likely to sell flats in new residential complexes at a slightly reduced price, intensifying a price competition between old and new projects.
- However, the ongoing projects in Kokapet are not expected to face adverse impact in the current circumstances. These developments primarily cater to the elite, who meticulously consider all aspects before making a purchase.
What lies ahead?
The release of the master plan pertaining to GO 111 will provide clarity on various aspects, including the locations of major roads, permissions for skyscrapers, commercial complexes, multiple zones, as well as designated areas for hospitals, educational institutions, parks, and entertainment centers. Without this information, investing millions to purchase land within the GO 111 area may prove problematic if the area is later designated as a master plan road or conservation zone. Therefore, prospective buyers are advised against hasty land purchases and encouraged to make informed decisions based on comprehensive understanding and clarity.
