No Reality in Hyderabad Real Estates
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Hyderabad city has experienced the growth in terms of real estate market exponentially with the IT market starting from the year 2005 and has reached the peak in the year 2008 year. The average cost of 2BHK apartment with all good amenities and in reach of 3-4 Kms to IT offices is 8-12 Lakhs in the year 2005 has increased to 50-60 Lakhs in the year 2008.
Recession has brought down the prices all over the world including all major cities of India but not in the city Hyderabad. The prices are kept the same with no downfall in the year 2009 in spite of recession and in the year 2010 the Telangana issue added fuel but the prices didn"t comedown except in few areas by 10-15% where the people are experiencing the issues with water facility, regulations, bad constructions,...etc.
Some Facts to remember,
- Hyderabad is scattered city unlike any metro city in India. Hyderabad is the only city with acres of free land with no development and this can be seen between every 3-4 Kms of development area.
- The fact of acceptance is that Hyderabad is only developed because of the IT Market but the real estate prices are increased only because of the Politicians, Cine Actors, Wealthy Business Tycoons, Corrupted Government officials, NRIs...etc
- Demand for real estate from IT Professionals in Hyderabad is only for 20% of the reality market and only for apartments with housing loans.
- Wealthy and corrupted are not ready to accept the reality and not ready to release the lands for development at lower prices.
From the above facts one can interpret that there is NO reality in real estate prices in the Hyderabad market. The current demand that we can see in the market is only for apartments with range between 20-25 Lakhs for 2-3 BHK apartments from middle cater IT people of India. All high raise apartments are only just blocked by greedy NRIs by paying the advance and there won"t be any completion to these apartments in the coming three years.
As per my analysis last year, I expected stability in the market after Dec 31st, 2010. But, because of the diplomatic politics in Andhra Pradesh left the questions of Telangana the same...
Aug 2010 Analysis
As far as I know, Investment in the real estate market in Andhra Pradesh is NOT a good idea unless the reality is accepted and the prices are stabilized with downturn of 25% allover the state of Andhra Pradesh and with 25-40% in Hyderabad.
Stay away for investment in Hyderabad.
Courtesy, Source, References & Regards: Kishore