Hyderabad will be the worst affected city in the real-estate bubble. There are nearly a lakh of apartments that are in line for auctions due to loan payment defaults - K T Nagaraju, a retired Government employee told that there are some 31,000 homes to be auctioned by Andhra Bank alone.
The rates have dipped from 40% in some area (Kukatpally, YousufGuda, Vanasthalipuram) to about 137% (Madhapur). IT professions are fired daily and are unable to repay the loans. Businessman and wealthy agriculturists from Godavari district who have invested in big-apartments are facing the heat. The 2000+ Sq Ft apartments they bought were leased to IT companies as service apartments. With compaines cutting on travel and accomodation, the lease for service apartments are not renewed if not closed prematurely
The rates will stabilise from Nov-2010 to pre-2005 levels says an experienced developer