The much awaited year-end has come and gone, but prayers of real estate on Telangana seem to have gone unanswered.
Robbed off its heights that were realised during the boom phase, the sector continues to struggle to recover on its way back and though it had hopes on some clarity emerging on the T-factor, the scenario remains the same.
Office space
Though some respite has come for the section that is dealing with commercial and office spaces since the second half of last year registered demand and occupancy showing signs of growth, the residential side of the industry remains mired in dilemmas and sales that refuse to pick up.
The sale of plots and land has taken a thorough beating and even the constructed residential spaces continue to wait for deliverance.
Such is the situation that even the Hyderabad Metropolitan Development Authority (HMDA), which has been toying with the idea of going in for auction of its plots to make its coffer feel better, is yet to take the plunge.
Continued growth
Though the predominant opinion across all sections appear to be that irrespective of solutions to the T-factor, the real estate will continue to grow around the city, the key affecting the issue happens to be the pricing and hopes of them going in for a slash.
Arguments related to the fortunes of real estate and their linkages to the T-factor are made but seniors in the industry reject them on ground of lacking in practicalities.
If separation is to take place, it could lead to a flight of capital and investors might choose to capitalise new and emerging locations, which turns out to be an oft repeated premise.
National players
Yet, the fact remains that the city and its suburbs has witnessed lots of investment being pumped in by companies with presence across the country and not just from the State.
“These builders and developers selected Hyderabad given its future prospects and, in fact, coming days will see more people coming here with their monies,” a builder says.The growing belt of IT and ITES along what once were the city peripheries holds enough potential for bringing in more capital to set up more residential enclaves alongside.
Also, infrastructure development is happening around the city in a big way that will finally result in residential conglomerations coming up.
Unexplored areas
One such is the Outer Ring Road (ORR), which when completed and fully operational, as promised within next two years, holds huge potential of residential and commercial growth alongside it.
International players
Also, as a builder points out, the road to the new international airport at Shamshabad and also the peripheries of the facility, have not really been exploited so far and coming couple of years will see it metamorphose beyond recognition.
Wait and watch
Most agree that the buyers are caught in a wait and watch scenario and till they step out of it, things will not change. “Its erroneous to assume that prices will go down further, but given the prevailing scenario, the buyers could not be faulted for getting into that thought process,” points out another. Correction has already taken place and prices could not be reduced as a horde of factors influence the pricing and even the cost of construction has gone up. The costs of construction materials have been rising continuously , they argue.
Correction in pricing
The year 2008-09 was the year of correction, which altered not only pricing but also the shape of the end product. From high-end and spacious flats with international brand fittings, the focus shifted to more conservative dwellings with reduced sizes.
The pricing, which ranged between Rs.4,000 to Rs.4,500 per sft, too, has come down to the range of Rs.2,600 to Rs.2,900 per sft.
T. LALITH SINGH
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