Low interest rates — at a near 10-year low, thanks to the Government’s recent announcement lowering rates for houses below Rs 20 lakh — and the pent up demand for affordable housing have seen the real estate market in Hyderabad recover in the last two months.
With value for money being the buzzword, the action is now centered around apartments and independent houses in the Rs 20-30 lakh segment. There is still pressure on sales volumes when it comes to apartments which are over Rs 30 lakh, according to industry experts.
Buyers’ market, still
“It continues to be a buyers’ market. This has forced many developers to re-look their existing projects and for the rest it is clear that affordable housing is the way to go forward,” according to Mr K. Ravinder Reddy, Chairman and Managing Director, Janapriya Engineers Syndicate, and Chairman of Andhra Pradesh Builders Association.
Mr Reddy said that after the elections the real estate market has shown clear signs of revival.
Though it is nowhere near the dizzy heights it had reached couple of years ago, the pent up demand is beginning to be served.
The Centre’s efforts to shore up the economy, coupled with State Government support by way of lower stamp duty and waiver of stamp duty for properties below Rs 20 lakh, have spurred the market. Buyers have realised that the market has more or less bottomed out and it is time to buy , Mr Reddy explained.
What is significant is that this time round speculative buying in anticipation of big returns on investment is conspicuous by its absence, according to Mr C. Sekhar Reddy, Chairman and Managing Director CSR Estates and Member of CREDAI (Confederation of Real Estate Developers Association of India).
Citing recent interactions with major real estate developers and members of the banking community at a meeting in Mumbai, Mr Sekhar Reddy said that the realty market in Hyderabad mirrors the other markets in the country. The enquiry levels and the conversion rates are going up, he added.
“Of the 12 municipalities in the Greater Hyderabad Metropolitan Corporation area, in nine municipalities we have projects that cater to all buyers. Significantly, in these areas there is adequate supply of affordable housing where flats are available for below Rs 20 lakh,” Mr Sekhar Reddy, said.
More developers, which include even the major players such as DLF, Mantri and Asoka Developers, are launching projects that are offering apartments in the Rs 20-30 lakh range.
The lower interest rate regime and concessions offered by the State Government for houses below Rs 20 lakh make this market, which is still hungry for good projects, attractive for developers, Mr Sekhar Reddy said.
The prices have already corrected by about 25 per cent, he added.
Land availability
However, in the core city area , the cost of real estate continues to rule high mainly due to demand-supply mismatch. The availability of land is an issue and this keeps prices high.
In a study of 10 cities by PropEquity , Hyderabad comes lowest in terms of launch of new units at 2,585 units because of high inventory.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment