Middle Class People buying plot and constructing a house in Hyderabad City is almost ruled out because of cost of land. The plot prices beyond Kompally and Bachupally have sky-rocketed and there is no possibility to buy an open plot in the radius for 40 to 50 Kms. from Hyderabad by a common man. But, the question is person living there and travelled daily thus part to reach office in Hyderabad once the Covid situation eases. Therefore the people may be interested to stay in the city vicinity and to reach the office within one hour time. Therefore, those who have such mind set are in timing towards buying plots and stay at a faraway place.
Currently those who buy plots are doing so, with an idea of investment perspective, but not to live there immediately by constructing a house. As such, even open plots layout are not being develop and kept open for long time, They are buying plots with a hope that the property appreciates in value after 5 to 10 years. As a result people prefer investments from land as such there is huge demand for approved plots. Keeping in view of Covid situation the demand for Farm Plots has increased. Many people are coming forward to invest in Farm house plots in peaceful atmosphere even if it is 50 – 60 Kms far away from Hyderabad.
During the first wave of COVID virus or Corona Virus many expected that investments on plots may go down but surprisingly the investment of plots have gone up and people are moving far away from the city.
Regulations on house sites price
There is no possibility of regulate the prices of house sites in Hyderabad. To look at the reason for demand there is no fundamental why the prices are going up. The people with an idea of investment purchasing open plots and we have seen the land rates have gone up 2 to 3 times within a span of six months to one year. There is a huge demand for approved layout open plots.
Why the rates are going up?
The land owners are thinking twice to offer the land on development as they feel that it may not work out to them and preferring sell land on out rate basis. Even plots or sites beyond faraway place are sky rocketed and not within the reach to purchase on out rate basis. Hence the developers offering exorbitant advances, goodwill, and percentages and further the prices on steel, cement, sand and labour prices have gone up, which resulted the cost of construction has gone up. The governments are declaring moratoriums and subsidies too many sectors and no subsidies or moratoriums to real estate industries. Moreover, there are many regulations on this sector and are adhered in any other sector.
General opinion of government people is that real estate people are making huge profits it’s not the reality. Problems are there in every sector and why only stringent rules with real estate industry. It is already saying difficult to construct a house and to perform marriage. The developer/promoter entering agreement with purchasers and completing the construction within stipulated time and handing over key of flat/building/house. Even small problems like minor leakage and small cracks are looked at micro way. This is common for any independent construction even owner construct which can be easily rectify but, developer/promoter is being blamed.
Now there is huge 70% demand for gated community and villas. The rest are enquiring for small plots as they are not able to pay the maintenance charges in huge projects. They do not need any gymnasium or swimming pool or club houses people are this type of mind set are purchasing plots in small ventures.
– TBF President Ch Prabhakar Rao
