Koripalli Gopala Krishna, treasurer of Telangana Real Estate Developers Association (TREDA) and head of Hallmark Constructions, speaks about the present real estate scenario in Hyderabad. In a chat with Express, he also gives suggestions to prospective home buyers.
How is the mood in the Hyderabad realty sector now?
It certainly looks promising and builders and realtors are upbeat. You can see how TREDA’s Property Show has received a huge response on the first day itself. About 20,000 footfalls were registered. We are overwhelmed with the response.
What are the reasons for this upbeat mood?
Hyderabad home market and realty sector has faced bad times over the past three or four years. A bad spell in any business cannot exceed more than that period. We have put all the turbulent times behind now. Things are stabilising. The government is making various new announcements and projecting Hyderabad as an investor-friendly IT and industrial hub. Home buyers know that the prices in Hyderabad are lower than in other cities and will not go further down. This has made buyers open up and start making inquiries.
But are these inquiries converting into sales?
All the inquiries may not convert into sales, but when compared to a year ago both inquiries and sales have been increasing. All the builders have been witnessing sales activity for the last three or four months. We cannot say that we are zooming ahead but the situation is much more positive now.
Which areas of the city do you suggest for prospective home buyers?
Narsingi, Nanakramguda, Tellapur, Miyapur, Hitec City, Gachibowli in West Hyderabad; and Attapur and Manikonda in South-West are good for first-time home buyers and for investors as well. Areas around the Outer Ring Road and some in East Hyderabad are also good for long-term investment. Home buyers or investors should keep in mind that that any property which gives 5 per cent appreciation in case of residential segment and 6 to 8 per cent in commercial segment in the short run is a good buy. In the long run, if q 10 per cent appreciation is expected, it will be a good investment.
Any other tips for buyers?
My main suggestion is home buyers should not fall for the tactics of illegal builders and realtors coming with illegal constructions or ventures. Buyers should verify whether all the legal formalities were complied with by the builder. If buyers do no take proper precautions at this stage, they will face problems in the future. It is mandatory to check whether HMDA or GHMC has approved the apartment or villa. It is always safe to avoid buying properties cleared by neighbouring panchayats as we do not have a clear system to verify the genuineness of property.