Real Estate in Hyderabad Failing to Rebound
Real estate in Hyderabad is not bouncing back as expected. Despite the Reserve Bank of India (RBI) reducing loan interest rates, favorable conditions have not yet emerged in the market.
Multiple Factors Behind the Slump
The stagnation in the market is attributed to both international developments and local issues. Land prices have surged in ways that no one predicted, pushing them out of reach for the average buyer.
Unrealistic Land Prices
Even ten kilometers away from the Outer Ring Road (ORR), land is being quoted at ₹30,000 per square yard. This puts land ownership beyond the reach of the common man, raising the question, where will the demand come from?
Skyrocketing Rates in Developed Colonies
In already developed colonies near the ORR, prices range between ₹70,000 and ₹1,00,000 per square yard. For commercial properties, it’s even harder to predict prices. This sharp rise in costs is pushing up project expenses, leading to fewer buyers and a steep drop in demand.
Call for a Market Correction
There is a growing belief that land prices need a correction. Many realtors are focused solely on profits and are failing to recognize that they are draining the potential of what was once a golden market by overpricing it.
Unsustainable Pricing Models
Across various ventures, prices are at a level where people question if they can even resell at those rates in the next ten years. For instance, in a project just five kilometers from the ORR, land is being sold at ₹25,000 per square yard — but it could take 10 to 20 years before homes can actually be built there. Until then, price appreciation is unlikely.
Experts Urge Market-Driven Approach
Industry experts suggest that if realtors align their pricing and approach with actual market conditions, there’s still a chance to revive and stabilize the real estate sector in Hyderabad.
