After the change of the government in Telangana, for the first time in the newly carved Telangana state the real estate sector is witnessing unprecedented stagnation. The recent report of prominent real estate consultant PropTiger on the average increase in house prices in 8 major cities of the country, Hyderabad has fallen to the lowest position.
The PropTiger report has clarified that the price per square foot has increased by only 7 percent during the same period this year compared to the July- September quarter of last year. It is noteworthy that the price increase in the other seven cities, except Hyderabad, placed at an average rate of double digits during the past year.
It is remarkable that 57 percent of curds are seen in Delhi-NCR. After the formation of Telangana state, the real estate sector mainly in Hyderabad got a boost. This enthusiasm continued for almost ten years. However, real estate industry experts strongly say that due to the change of power in the state at the end of last year, the decisions taken by the new government, and other circumstances, the slowdown in the construction sector has suddenly been covered.
In fact, the craze of Hyderabad and its surrounding areas was more than the Josh that is now seen in Delhi-NCR. Business and industrial sectors queued up for Hyderabad as the previous government laid great emphasis on infrastructure development. This has increased job opportunities. This has contributed to the strengthening of the construction industry.
But now the business activities in the market are decreasing, the investments are also limited, inflation, high interest rates… along with these effects, the ill-conceived decisions of the state government are also hampering the growth of real estate.
Every year for 5 months from the beginning of Vinayaka Chavithi, the real estate market gets festive. With that, the allied sectors of the construction sector are also flourishing. Realtors say that especially during Dussehra and Diwali, house sales are recorded heavily.
But this time those conditions are not seen. Due to this, there are suspicions that the real market may not rise even in this October-December quarter. Most of the realtors in the city are expressing their concern that the fear of HYDRA is increasing among the buyers and that is why they are taking a step back. Mainly the upper middle class customers say that they have postponed the purchase of houses.