In the aftermath of the Covid-19, the real estate sector recovered remarkably. Similarly, the Hyderabad market also recovered manifold. But, the situation took an ugly turn for over some time. The real estate market did not progress along the expected lines.
Experts analyze that there are six reasons for the downtrend in the realty market. The first factor for the sorry state of affairs is the escalation of prices of properties. The prices of property in Hyderabad market have increased enormously, putting a burden on middle classes. As a result, it impacted property sales. Secondly, adverse campaign in a TV channel or two created a feeling among the people that something undesirable is happening in the real estate market. This has thrown the buyers in a state of confusion. Withdrawal of GO No.111 created the feeling that huge amount of land near IT corridor would be made available for real estate sector. Therefore, many people have adopted a wait and watch attitude and postponed their investments.
Fourthly, the political situation in Hyderabad prevailed for the past six months adversely impacted the real estate. Fifthly, the Russia-Ukraine war created tension among the people. Many people were worried over the outcome of the war. Many thought that the war would affect the prices of building materials.
That is why many investors backed out from investing. Lastly, many people backed out from making investments predicting adverse conditions due to the economic slowdown. But the officials assure the investors that the conditions are only temporary and everything would be fine over a period of time. But they say that the escalation of prices would impact real boom adversely. Opinions are being expressed on containing the hike in prices of properties.
