May 22, 2007: Hyderabad Real estate continues to spiral down in many areas due to low demand for apartments and rentals. Buyers are staying away which is attributed to general negative sentiment and sellers are not wanting to get rid of their properties at low prices. I know of a few cases where buyers have forfeited their hefty advances after sale agreements since they could not flip the land as planned.
DC Sunday Hyderabad Chronicle is gaining pounds everyweek with increased real estate advertising and iI see more and more people trying to use the red listings [ premium listing I guess ]. Too many apartments and houses for rent and sale. Looks like the NRI population is also booking profits in this market and moving to a more stable bank deposit or a conservative mutual fund investment. Reality bites the sellers that have high hopes on their properties as soon as they list their properties in DC or some where else. FM Radio and papers are filled with ads about “Buy xxx yds and get laptop free”, “Buy farm plot and get farm house free” and other interesting schemes.
Kondapur apartments are pretty close to breaking below the 3000 per sqft support level and its going to be a long journey for those who are trying to get 30k in rent for a 1800 sqft apartment. Villa projects in prime projects with large built up sqft are holding and growing in value [ 600 sqyd, 5500 sqft, 3.8 crores etc. ]. With the new hype around villas, I see many folks falling prey to developers who are selling triplex villas in 200 - 250 yds [ in remote undeveloped areas ] at more than 2 crores.. please do your home work before you jump into such projects..
Regal Broadway ( NEW ) : HUDA decided to create a new area called regal broadway near the international airport to host a dozen new start hotels to cater to international passengers. Huda invited private companies to construct a 7 star and six 5 star hotels along with five 3 star hotels in a 150-acre area.
Hyderabad Airport : According to GMR, the developer of Hyderabad International Airport, 70% of the work is complete and its on track to be done by March 2008. I really doubt that the work will be fully complete by then, but atleast test flights will be possible by that time. This seems to be the only project in Hyderabad that is showing some progress so far and will be delivered some time in 2008.
Most conservative investments in India today will yield you upto 11%, do you think that an overpriced 1 crore apartment will give you equivalent CAGR over the next 3 years ?
As always.. Its your money.. Spend it Wisely..
Thursday, May 31, 2007
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3 comments:
Hyderabad real estate is booming and people are more interested for real estate investment specially NRI folks. This is a good sign of development. Investor are looking for good quality building construction along with luxury amenities.
Thanks! Very informative post. Hyderabad and Bangalore real estate market has same condition and buyers are extra cautious before investing in real estate. The free and attractive offers getting attention from buyers but still buyers are doing their homework before investing in Hyderabad or Bangalore residential properties.
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