Hyderabad: Core areas of the city are no longer real estate hotspots. While prices are booming in the city outskirts, in contrast they are declining in the core areas.
With few or no takers here, real estate prices are being quoted lower than the market price.
The Telangana state government had put up 17 parcels of land in Ranga Reddy district and 10 parcels in Hyderabad for sale in the recent e-auction, but bidders vied for lands only in RR district.
Real estate players say heavy congestion in core areas, traffic woes, parking problems, lack of open space etc. are prompting new property buyers to look at the outskirts due to which rates in core areas are coming down.
Builders opine that a majority of the residents of core areas like Khairatabad, Panjagutta, Begumpet, Secunderabad, Marredpally, Sainikpuri, Tarnaka, Vidyanagar, Barkatpura, Himayathnagar etc. had bought property long ago and continue to stay there due to their attachment to their houses, apartments etc.
“With many corporate firms coming up in the city, lakhs of people have got better paying jobs who are looking for houses, villas, flats in gated communities on the city outskirts, where there are open spaces in larger extents are available. But in core areas it is not possible to take up such projects, which attract new buyers. This is the reason for stagnation of the property market in core areas," said Mr C. Shekar Reddy, former chairman, Credai.
Builders say the future growth story is towards north and east of the city, with the west too becoming congested due to significant number of residential and commercial projects. “The future growth would be in the east and north of the city, where projects such as ITIR are lined up,” said builder Mr K. Rami Reddy.
Telangana pins hopes on land in districts
The recent sale of land parcels under HMDA limits fetched only Rs 400 crore for the Telangana government. The target was Rs 700 crore.
The government has now lined up sale of 7,900 acre of land in districts with a revenue target of Rs 10,000 crore. The second phase of auction notification is expected be issued in December.
The government hopes that the response will be better for land in the neighbouring districts as the parcels available are in tens and hundreds of acres, which are in demand from various companies and realtors, against the smaller sized plots that were offered under HMDA limits.
The extent of lands that has been identified in districts to be put up for sale include 9 acres in Hyderabad, 3,900 in Medak, 930 in RR district, 1,140 in Karimnagar, 300 acre in Warangal, 900 in Mahabubn-agar, 300 in Nizamabad, 300 in Adilabad, 50 in Khammam and 30 in Nalgonda district.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.
