- Developers in West Hyderabad to face the biggest threat
- Sales of flats already on decline
- There is no hope of growth in the future
Whether the GO 111 will be repealed or not, the announcement made by Chief Minister K Chandrashekhar Rao in this regard in the Assembly recently has created tremors in the construction sector recently. Mainly in areas like Narsingi, Kokapet, Financial District, Kollur, Tellapur, Usman Nagar, Pati Ghanpur, and Velimala, the developers who bought land with high investment, are having a tough time. Builders who have entered into development agreements with landlords for a higher ratio are now in doldrums. Amid speculations that CM KCR will revoke the GO 111 after the committee’s report, buyers are not coming forward to purchase flats in various parts of Hyderabad.
If the GO 111 is cancelled in the coming days, thousands of acres of land will be made available and land in the 84 villages under GO 111 will become cheaper when compared to Kokapet. Even if it is delayed by a couple of years, the land prices will definitely fall. Buyers are willing to wait and watch rather than purchasing lands for a higher price. They are of the view that as any big project will take nearly four years for completion, a large percentage of people are willing to wait and buy the property for a cheaper rate than rushing to buy it for a higher rate. Hence, many are reluctant to buy flats in certain key areas of West Hyderabad.
Builders too are admitting that there is a decline in sales of flats even as mystery continues over cancellation of GO 111. As a result, the construction work on several projects is moving at a snail’s pace in these areas. Some builders are delaying work, citing rising construction material prices. However, majority of developers are now wondering how to survive the market if GO 111 is revoked.
