Hyderabad, August 02: The resounding success of the Telangana Rashtra Samithi (TRS) in the byelections has created jitters in the real-estate business, in and around Greater Hyderabad. The prospect of a separate Telangana has started gaining momentum and this is feared to make buyers postpone buying property, hoping that prices might fall. Real-estate developers are therefore feeling uneasy about future prospects.
In the last six months, the business had been picking up and developers hoped to make up lost ground by gaining profits. But the result of byelections has come as a shock as land prices are likely to nosedive again.
Property developers told Express that demand for Telangana has thrown the real-estate sector into quandary. They now feel the land prices would either become static or go down further. For the last two years, the business around the city has been affected badly. Though land prices have remained stagnant, there were no transactions according to property dealers. “The business had just started picking up in the last six months as the Telangana movement cooled down and I hoped to cover up losses and make some profits by the year-end. But all our hopes have been dashed as the buyer might no longer be interested to purchase lands because of the prevailing situation, “ said M Srinivas, a real-estate dealer having ventures in Shameerpet and Kothaguda.
“As the movement is gaining more strength, the revival of real-estate looks bleak and the question of increasing land prices does not arise, instead we would have to reduce land prices. Otherwise our business would be in doldrums, “ said Krishnaswamy, another dealer having two ventures near Maheswaram. “We would prefer to wait and watch the situation for some time,” he added.
There would be a significant impact in peripheries of Hyderabad, Ranga Reddy and Medak districts. The land prices would dip in these areas, Mahesh Kumar, a real-estate dealer said. He said the residents of Andhra and Rayalaseema regions were the significant buyers in Greater Hyderabad. The creation of a new state might reduce the number of speculative investors.
–IANS