Land prices will not come down if GO 111 is abolished

King Johnson Koyyida: The abrogation of GO 111 will not have any adverse impact on the prices of flats in areas like Kokapet and Narsingi, asserted TREDA Secretary General Meka Vijaya Sai. Upon getting elected as the new Secretary General of the Telangana Real Estate Developers Association (TREDA), he spoke exclusively to Real Estate Guru (REG). He felt that though the State government decided to annul the GO 111, it would take at least an year or two to get a clear understanding of the situation. He said that the location always played a crucial role in the real estate sector and the sale of properties depend on the same. Considering the development of both residential and IT spaces in Kokapet and surrounding areas, he was confident that these areas will remain hotspots for realty development. Excerpts from his interview.

“As the government has decided to repeal GO 111, a special committee has been appointed under the chairmanship of Chief Secretary Somesh Kumar to decide the way forward. The committee will conduct a thorough study and make recommendations on how to utilise the area and develop infrastructure like roads and drainage system, what structures should be permitted in which areas, how much space should be developed and when.

If the government partners with construction associations such as TREDA in this process, we can use our experience and expertise to make a significant contribution to the planned development of the region. To conserve the greenary in the area, an experienced organisation like the Indian Green Building Council (IGBC) should be roped-in for the purpose. Primarily, a master plan should be prepared and all steps should be taken to avoid any damage to the environment.

Measures to make homes affordable

In Hyderabad, flat rates are rising due to a sharp increase in land prices, doubling of the labour cost and construction materials. As a result, the builders are not in a position to construct flats at affordable prices. An 800 sq.ft flat is considered a luxury for flat buyers in Mumbai. But people in Hyderabad are inclined to purchase Vaastu compliant and spacious flats. Considering the current land prices, budget flats can be built in either Shankarpalli village or the Ramoji Film City area. But how many people wil purchase flats in these areas? Therefore, if the government provides certain land to private developers to take up projects under public-private partnership, we will be able to provide affordable houses. One must realise that it is difficult to build affordable flats in the city considering the increased land prices.

To our members

On behalf of TREDA, we will keep our members informed about market conditions. We provide details of various projects taken up in different locations and guide them based on the prevailing conditions on the realty sector. Issues pertaining to the construction sector will be taken up with the government and try to address them. We will extend our support for the overall development of the construction sector in Telangana. Like the previous years, we are planning to organise the TREDA Property Show in a grand manner during this October.