Prospective Buyers Feel Land Values Might Dip. With news that the United Progressive Alliance (UPA) government may announce its decision on Telangana in the next couple of days, there is a dip in the number of property registrations and real estate activity in Greater Hyderabad.
The main reason attributed to this trend is that many prospective buyers are hoping land values and property rates might come down if the UPA announces separate state of Telangana. Several big infrastructure ventures, which are in the pipeline, are worried with the current situation.
For instance, 80 transactions, on an average per day, used to be logged at the LB Nagar sub-registrar office (SRO) till first week of July, now only 30 documents were being registered at the office. The SRO, which has jurisdiction over areas like L B Nagar, Nagole, Kothapet, Bairamalguda and Meerpet, is considered as one of the potential areas by the stamps and registration department. Similarly, Serilingamapally SRO used to record 20 to 25 property registration a day, but the number has come down to 12 per day.
The situation is similar in other potential areas like Uppal, where 40 documents per day were registered with the SRO office till a couple of weeks ago and the number now has come down to between 25 and 30 documents per day.
There is an impact on the number of property registration in the last few weeks in Kukatpally, Shamirpet and Qutubullapur sub-registrar jurisdictions. “The Telangana issue and Ashada masam, the Telugu month which is considered inauspicious for purchasing new properties, are the prime reasons for dip in number of property registrations,” V Hanmantha Rao, SRO of LB Nagar told INN.
Sources said the real estate and property sales gathered momentum after all-party meeting in January and then revision of government rates. Now, it would take some time for property transactions to pick up in the city.
Meanwhile, major infrastructure companies, which have pumped in huge money for their projects, put their projects on hold and have been waiting for a decision on Telangana. GK ARPL Ventures has planned nine blocks with 600-flat gated community near Yapral in the second venture and it could sell 140 flats so far. “Until last month, we used to sell 10 to 12 flats per month. In the current month, we could sell only four flats,” GK ARPL Ventures chief executive officer K Sudhakar told INN.
However, officials and builders’ associations claim even if there is an impact, it would be a temporary hitch and they hope the city would witness realty boom as it has potential whether Telangana is formed or not.
