Real Estate Crash in Hyderabad

Real Estate Blood Bath in Hyderabad

Not long ago real-estate prices raised daily in IT Hub Hyderabad; Many first time city dwellers who were enthusiastic in living in high-rise apartments pitched in and bought flats at exorbitant prices. The situation is completely reversed in six months.

Downward Sensex, NASDAQ et al

Last two months saw Sensex going down by 55% and as of now it remains @ 8700 (circa 2004). Some of the investors lost almost 60-75% in the downfall. The worries of global markets cemented the belief - all is not well. This made the home buyers think twice and eventually slowed down the Real Estate in Hyderabad

Job cuts in Hyderabad

In the past four months around 15,000 professionals lost the job with Wipro, Satyam contributing a huge share by laying-off engineers in thousands. Some small companies, which were directly exposed to US banking and mortgage shut down their offices in Hitech City completely. This stalled the real-estate growth in Hyderabad and stunned the greedy realtor Sharks

Hyderabad Real-Estate Builders with Huge Loans



Ravichand, an expert in market analysis attributed the Crash in Hyderabad real-estate to the pressure from Banks on defaulters - builders, construction equipment suppliers etc. According to him, around 80,000 crores of loans need to be repaid by the builders (NOT home-loans) apart from another 30,000 crores in mutual funds. This led to steep reduction in prices.

No takers for Big projects

Though a good amount of bargaining is going on for small projects, big projects are without any takers. Aparna Towers, which once quoted 3950/sft have come down to 3000/sft, but left without any sensible takers. Lanco hills is the worst affected - with Telangana state now becoming a reality and with its chairman L. Rajagopal M.P in loggerheads with TRS and Telangana Congress MPs, the project seems to be on a high-risk area.

Rates will further decrease

Rameshwar reddy, who has been in the real estate field for more than a decade feels that 3000-4000/SFT are a thing of the past. The current downward trend will continue till May 2010, and would stabilize around 2200/SFT. If you are willing to buy a flat in Hyderabad .. JUST WAIT AND WATCH or you will pay 1000-1550/SFT extra