Hyderabad: After a six-year real estate boom in Hyderabad, the value of land and apartments has skyrocketed and thus become unaffordable for many people, leading to a drop in registrations of apartments and plots.
Buyers wait for prices to fall. Many people who have bought land and houses as investments are in a state of shock seeing the current market situation.
Knight Frank Residential Market’s first half-year report 2021 highlighted a changing real estate scenario.
The number of unsold apartments in the first half of 2020 was 4,037, and in the first half of 2021 – 11,918, which is a cause for concern. Chorus: Will the cloud of slowness in Hyderabad real estate dissipate?
According to the report above, supply and demand increased in the first half of 2021 compared to the first half of 2020. In the first quarter of 2021, an increase in apartment sales was recorded, and in the second quarter of the year – a constant decrease in the number of launches and sales.
Buyers are hesitant to buy because of the high cost of the land.
The government revised land value in Gandipet is Rs. 17,000 per square yard while landowners seek Rs. One lakh per square yard.
Likewise, in Sarornagar, especially on the Champapet Sagar Road side, all landowners demand 1.5 lakhs per square yard, compared to a government revised price of Rs 28,000 per square yard.
According to the director of Aparna Construction, properties in Hyderabad have been sluggish over the past 6 months, and he said that due to the huge increase in the cost of registration fees, buyers are not coming forward.
Moreover, due to a 1.5% increase in stamp duty, buyers are only buying units in the range of Rs 50 lakh to Rs 1.10 crore, while there is no tendency to buy units above this price.