'40-50 percent real estate price hike expected in Hyderabad'
With the Telangana government announcing plans to develop Hyderabad as a global city, the real estate developers expect 40 to 50 percent increase in the prices over next six to eight months.
As the political uncertainty in the city ended with the formation of Telangana state and installation of a new government, the real estate sector believes the market is positive.
According to the Confederation of Real Estate Developers of India (CREDAI), the prices in Hyderabad increased by 10 percent during last three months and it expects this trend to continue
"Based on the present rock bottom prices, our expectation is that prices will increase by 40 to 50 percent in six to eight months," said CREDAI national president C. Shekhar Reddy.
"This will definitely happen because of the increase in input costs, taxation and inflation. There has to be some correction between Hyderabad and neighboring metro cities like Chennai and Bangalore and when correction takes place the prices will go up," he told a news conference.
Reddy, however, said gradual increase in prices would benefit all stake-holders. He said that they don't believe in speculative market and pointed out that during boom time, only few people made money by indulging in speculation.
The CREDAI chief said he believes with the world-class infrastructure like international airport, outer ring road and metro, Hyderabad is in the forefront to emerge as a global city.
He also referred to the plans of Telangana Rashtra Samithi (TRS) government to improve Brand Hyderabad, prepare a new master plan, develop Information Technology and Investment Region (ITIR), satellite townships and special clusters for various sectors.
S. Ram Reddy, general secretary, CREDAI, Hyderabad, said even with 50 percent hike, they would not reach break even. He said during last five years the developers suffered heavily due to uncertainty and were forced to sell the projects at low prices.
CREDAI announced that its property show will be held here from Aug 29 to 31. More than 150 developers will showcase their wide-range of products with the cost of the units ranging from Rs.30 lakh to Rs.2.5 crore. The total cost of the projects will be ranging from Rs.5,000 crore to Rs.10,000 crore.
Telangana Chief Minister K. Chandrasekhar Rao is expected to inaugurate the property show, the first by CREDAI after formation of Telangana state.
(Posted on 21-08-2014)