As markets opened up after the first wave of Covid-19, many people started buying properties especially plots. And Hyderabadis were no exception. One of them was Srinivas who purchased a 200 sq.yard plot in the layout of a reputed group in Bhanur. He purchased the plot at Rs 25,000 per sq.yard just before the second wave commenced. As the market prices were soaring, he felt that the land price would only increase, but would never go down. However, he decided to sell off the plot due to sudden need for money and was shocked to learn that no one was coming forward to buy the plot for more than Rs 22,000 per sq.yard.
He could not understand what to do and contacted the company’s marketing executive who explained him about the current scenario in the market. There was a kind of panic among the people after the first wave of the Corona. Many people wanted to own a house rather than live in a rented house or flats. Amid speculations over two more Covid waves within next a few months, everyone competed with each other to grab an affordable home for themselves without even considering location, price, extent of plot and other basic details. Adding to the chaos, realtors too have hiked the plot prices by 10-20 per cent to cash in the mad rush. Buyers too felt that the price rise was a genuine boom in the market and did not hesitate to purchase plots at a higher price. None of them had thought twice whether it was just a bubble ready to burst. There was also influx of investors from other cities and also neighbouring Andhra Pradesh. The Kokapet lands auction at a mindboggling prices, added more fuel to the market sentiments.
But over the last one month, the Hyderabad’s real estate market appears to be returning to reality, promising normal conditions in future. With prices going beyond affordability in many areas and Covid-19 becoming a normalcy, people have started thinking twice about their investments in real estate sector. Thus, the plot sales which normally soar during the festive season, are on a downward trend. Some realtors are attributing the current plight to artificial increase in land rates and made them unaffordable for the commoners who are genuine home buyers.
Responding to the current situation, leading realtor MS Raju expressed apprehensions over the rising prices and feared that if this continues, the market might face a severe slump and might not witness a rise for next 10 years. “Where is this leading to, if the land is being sold for Rs 30,000-40,000 per sq.yards in areas without basic infrastructure and are not conducive to live immediately?” he questioned. He pointed out that Maheshwaram area which witnessed similar boom, had not recovered until recently. He feared that the Maheshwaram-like situation might spread to other parts of the city soon.
