The Cabinet’s decision clearing the Telangana Bill evoked mixed reactions from the realty sector in the city.
While a section of developers foresee a dip in demand for property and a possible price correction, others including trade body Credai observe that going further the sector is likely to witness growth in the coming months.
“Rates are likely to fall by 20-25 per cent across the city and we anticipate developers to start disposing off unsold inventory. In the upcoming locations like Miyapur, outer ring road, Shamshabad, Medchel and Uppal we expect another 5 per cent fall in prices,” said C Sudhakar, MD, Chakilam Constructions, a residential property developer, who claims to have unsold inventory of 30 per cent.
And unlike earlier, he now takes up only one project at a time compared to 4-5 projects in the past, thanks to bleak sales.
In the past 2-3 years, realty sector was badly hit following uncertainty over separate Telangana. The overall trend has remained conservative with developers going slow on new projects and buyers deferring decisions.
A majority of the new projects were located in the eastern parts of the city covering Sainikpuri, Bowenpally, Padmarao Nagar and in peripheral locations such as Gajularamaram and Tellapur. And nearly 40 per cent of these new developments included luxury housing and villas, indicating demand for premium housing.
“There won’t be any drop in prices as they are already at rock bottom. Compared to metros like Chennai, prices are at least 60 per cent cheaper. Prices will only go up and we anticipate that they will double in the next 2-3 years,” said Shekhar Reddy, National President, Credai.
“Commercial property market too was dull over the past few years. This was both because of the market slowdown and uncertainty within the state. “Now, this will change, as there is clarity,” he said.