It is better not to buy in Kollur!

1) Sir, a company called RJ Group is selling a flat in Yamnampet near Ghatkesar for Rs 3,099 per sq.ft. It is a gated community project with over 450 flats in 7.5 acres. The price also seems to be low. Can I buy a flat in it? What factors should be considered before purchasing?

– Rajesh, Peerjadiguda

REG: Mr Rajesh I can confidently say that it is a good price in Ghatkesar. The real estate sector in Telangana is growing significantly due to the revolutionary decisions taken by the Telangana government. So, there is a growing demand for real estate in and around Hyderabad. At the same time, you must focus on several factors before buying a flat. They are..

Credentials of the construction company – RJ Group, must be checked. This includes experience in construction industry, projects undertaken in the past, timely delivery, and promises executed. If possible, talk to people who have already bought flats from the company. Examine their construction quality. One must invest time before purchasing a property with their hard-earned money.

One must ascertain from the construction company whether they have obtained permissions from the relevant authorities like GHMC/HMDA before building any apartment or not. The builders should also get necessary permissions from Telangana RERA for construction of any apartment or villa in the state. Printing of brochures and advertising for sale of flats can be taken up only after obtaining all these permissions and those who fail, will have to pay nearly 10 per cent of the total project value as fine and other action from the officials concerned.

Some real estate developers are offering flats for a lesser price and collecting entire amount from consumers to avail it. People must be cautious before entering into such deals as the fate of the project could be unpredictable especially during the current pandemic. It is not known whether the company would start construction at all; get all permissions from the authorities concerned. Therefore, it is best to purchase properties in projects which received all approvals including RERA and the local body authorities. While RERA will come to the rescue of consumers who purchase properties in RERA-approved projects in case there is any problem with the builder and his construction, it cannot help those who buy properties in the projects without RERA approvals.

2) There is a lot of hype that there will be an IT park in Kollur. Some builders have hiked the prices of properties soon after this news came out. Is there really such proposal to set up IT Park in Kollur? Is it good time to buy a flat now or should I wait for some more time?

– Arun Nair, Gachibowli

REG: There have been announcements of establishing new IT Parks in Hyderabad as well as Tier-II cities like Karimnagar and Warangal. Similarly, new IT Parks in Budwel, Kompally and East Hyderabad (Uppal) areas were also widely publicized. But there has been little progress and no new IT jobs were created in these areas. They have helped only in hiking the realty prices.

After all, you are aware of the mad hunt for lands around Maheshwaram at the time of setting up of Shamshabad Airport. There was even a rumor that some people drove around in cars with money bags to buy as much lands as they can. However, the real estate market of Maheshwaram made no major progress for the next few years and some growth is being witnessed only in the last couple of years.

Soon after such announcements, the landlords as well as realtors and developers hike the land and property prices exorbitantly and sometimes, as much as they could be after 10 years. This is what happened in Maheshwaram and has been happening in Kollur which does not even have proper road connectivity from Outer Ring Road. One should imagine how much longer it would take for developing infrastructure such as roads, drinking water, electricity and drainage in this area.

There should be a reality check. You should first compare property prices in the current market to prices about two-three years ago in the area. If there is an exorbitant increase, it is better not to purchase any property in those areas. One should note that the State government is constructing over 20,000 double-bedroom houses for the poor in Kollur and its surroundings. If the current infrastructure including drinking water supplies are adequate. Take a final decision only after finding out the ground realities.

3) Sir, a company is selling flats for Rs 2500 per sq.ft at Patancheru. But they are asking for payment of entire amount in advance. However, the company will not give any receipt after taking the money and an agreement is signed only subject to approval from the RERA Authority. Should I buy a flat in it?

– Kiran Kumar, Bhanuru

REG: Purchase the flat only after the project receives permission from the local bodies and RERA Authority. Even if you buy a double bedroom flat at Rs 2,500 per sq.ft, if you consider the cost of car parking and other amenities, it will be as much as Rs 30 lakhs. Suppose it takes three years for the construction to complete and interest is calculated the rate of two per cent (Rs 60,000 per month), it would cost another Rs 21.60 lakh for next three years. In total, you are spending Rs 52 lakh for this flat. If the project is delayed for any other reason including Covid pandemic, the flat cost will cross Rs 65 lakh. Moreover, it is not known whether the project will start at all. Therefore, the decision to buy a flat should be made after considering all these factors.

Do you want to buy a plot or a flat? Want to know if RERA has permission for that project? Also, if you have any doubts or problems, please email us at regnews21@gmail.com. The Real Estate Guru will answer your queries.