- Things to consider – project design, elevation, specifications, amenities
- Purchase only if it’s irresistible
- Builders must be vigilant
- Buyers must think twice before taking a decision
(King Johnson Koyyada)
Before launching a new project anywhere, an intelligent developer will first examine the rates in the surrounding areas. They estimate the price escalation upon completion of the construction, before arriving at the offer price of his/her project. In addition, the final cost of the flat is determined by taking into account the value of the land, construction cost, permission fees, marketing costs, rising construction cost, and some profit. But, sometimes few builders treat it differently. When buying a flat in one such project, you should think twice and make a final decision.
For instance, Madinaguda area, especially the main road, is witnessing a lot of activity these days compared to 10 years ago. Though not as much as it was anticipated, the area has developed commercially as well. The flat prices within a radius of 1-2 km in this area, are being pegged at Rs 4,500 to Rs 5,000 per sq.ft. In the gated communities of Miyapur and Chandanagar, the cost is Rs 6,000 per sq.ft. Some reputed companies with good experience in the Hyderabad market are selling flats at an additional price of Rs 500 per sq.ft, depending on their brand value. But it is learned that some construction companies are trying to sell the flats at a whopping Rs 8,500-Rs 9,000 per sq.ft in this area. If a right rate is not offered in an area, it will have a negative impact on the surrounding market in the locality. This has already been proven in many parts of Hyderabad.
* Buyers will consider moving to a better location or project which is within their budget. Rather than purchasing a three-bedroom flat for Rs 1.5 crore, they will try to purchase flats in the RERA approved projects under 100 percent payment schemes from reputed builders in areas like Kondapur, Tellapur, Kollur and Kokapet. Therefore, if a builder decides to hike prices, he/she might suffer losses rather than earning profits.
Developers must be careful
If anyone is trying to sell flats for Rs 8,500 to Rs 9,000 per sq.ft in Madinaguda, the local builders should consider it as a great opportunity. Since their price is low, one should try to sell their property as soon as possible rather than raising the price on the lines of big projects. They must be realistic, rather than competing with major builders. They must not assume that if they increase the price on par with major projects, buyers will not hesitate to purchase flats in their project. It is nothing but suicidal and might not be able to sell their flats in time.
Are you buying?
Buyers should examine the specifications of the project before buying flats for Rs 8,500 to Rs 9,000 per sq.ft which is higher than the existing market rate. Thorough consideration of specifications, elevations, landscaping, amenities, project design etc, should be done. At the same time, one has to look at what other projects are offering in the location. They should pay a higher price, only if one thinks that he/she will lose a great opportunity in case of not buying property in the said project. Otherwise, it is better to go a little farther and buy a flat in a better, cheaper project.
