An acre of land fetching Rs 100 crore in HMDA layout in Kokapet on the outskirts of Hyderabad caused many a person to raise eyebrows. The Chief Minister K Chandrasekhar Rao has proudly declared it as an example of the credibility of Telangana. However, the CM’s statement evoked mixed response from various quarters.
The prices of the property became unaffordable for common people. Under such a scenario, an acre fetching Rs 100 crore would mean the dream of owning a house by the common man appears to be hard to fulfil. Moreover, some people were heard commenting that there is the hand of the government in the land in Kokapeta fetching unprecedented Rs 100 crore an acre. According to publicity gained ground, some crucial persons in the state government have reportedly advised the major developers in the real estate sector not to reduce the real estate prices in the city of Hyderabad to make it a favorable destination for investments and for the image of the city to increase in the eyes of others.
A drop in realty prices under the prevailing situation would have adverse impact on realty sector. Hence, they have been reportedly asked to ensure that there is no drop in the prices of realty, according to reliable information reaching here. According to the rumours gaining ground among the real estate sector in the city, the government has geared up to launch many more infrastructural development projects after the elections. The government has been showing the growing prices in Hyderabad property market as a yardstick for development of Telangana.
The Kokapeta lands fetching unprecedented price is attributed to Hyderabad emerging a favourite destination for various industries. However, there are others who beg to differ on the cause for the real estate phenomenal growth in the city of Hyderabad. They attribute it to the reports churned out by various real estate agencies.
The property prices have increased by 30-50% in the Hyderabad market in the post-Covid scenario. Hyderabad market emerged as the second best pricey market after Mumbai. Therefore, the middle classes and upper middle classes have started feeling the burden of owning a house. In spite of it, there is no decrease in the prices. Some major real estate players prefer to remain their inventory intact rather than decreasing the prices. After the Kokapet auction of the land parcels, the realtors have jacked up the cost of construction in high-rise structures by Rs 500 to Rs 1000. It affected the business interests of the ordinary builders and at the same time poured cold water on the aspirations of the middle-income groups to own a house.
