HYDERABAD: Property prices in Hyderabad’s residential localities like Kukatpally, HiTec City, Begumpet, and Kompally have surprisingly shot up despite the pandemic. Realtors from CREDAI and TREDA claim that prices have increased by anywhere between `500-`1,500 per sq ft.
The industry has reclaimed its lost glory sooner than anticipated, leaving realtors puzzled, but happy nonetheless, over the rising demand for purchase of new properties. On the other hand, while realtors have not been immensely affected by the current non-agricultural land registration procedure, some feel that title disputes may lead to litigation, which in turn may hamper real estate investments in Telangana.
Speaking to Express, G Rajashekhar Reddy, general secretary of CREDAI, said, “The spike in property prices is a result of Hyderabad being a very stable and lucrative market. Foreign investments are also bringing employment to the city, which in turn is increasing the demand for residential areas as well as office spaces. The demand is causing the rise in prices, because people are willing to pay for properties now.” “Additionally, increase in cost of raw materials and labour has also become a contributing factor for the price rise,” he said.
While Hyderabad’s realtors are trying to get back on their feet, the recent land registration system has affected some of the city’s incomplete real estate projects. “Future prospects will not be affected by the LRS. However, some of the projects that are incomplete are hit by the halt of registrations. In other words, payments inside the supply flow has been delayed. The external market, meanwhile, is not bearing the brunt of it,” said Rajashekhar Reddy.Nonetheless, possible litigation may build a bad image, said Sreedhar Reddy, member of TREDA.