Negative RealEstate Growth predicted till 2010 in Hyderabad

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

Hyderabad RealEstate Prices Crash

Prices comedown in Hyderabad Real Estate

The real-estate prices which sky-rocketed in 2006-07 has come down drastically. The mecca-masjid blasts, followed by the twin blasts of Gokul Chat and Lumbini park has made the situation worse for the dealers. The final nail came from abduction of a Software Engineers kid in the IT locality of Kondapur

According to Keshava Rao and Srinivas, the prices have started falling when Telangana Rashtriya Samithi won the Karimnagar elections. The trend never looked up after that.

HUDA auctioned prime plots in its latest prestigious project, 'Pentagon' at Miyapur in an extent of 105 acres adjoining Miyapur Residential Complex. The plots would be offered in nine blocks in the range of 3 acres to 22 acres towards multiple purpose use for software, institutions, commercial, recreational, group housing for gated communities.

The Pentagon site at Miyapur is located in the serene surroundings against the backdrop of small hillocks and is close to Hyderabad-Bombay national highway. Rockdale Greens is located behind the Quli Qutubshah Tombs and Dargah on Old Bombay road close to Hitech City.

Finally, Pentagon had no takers, The Real Estate bust is partially due to the Bhu Poratam of the CPI(M). The communists have started occupying waste and govt lands. One of it is situated near the Pentagon, Miyapur site. Once this is occupied the site would be in the middle of mass population, which detered many builders to be part of auction

This trend might continue till mid 2008. So anyone interested in buying plots, houses.. wait ...