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Hyderabad Real Estate Bubble


Vihari

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Hyderabad Real Estate Bubble lo undi naaku 2018 lone aa rental prices chusaka anipinchindi. but many NRIs kept buying apartment and villas. no one really in a mood to analyse the value. Now suddenly most US NRIs are stopped investing in hyderabad. something fishy going on.

https://www.newindianexpress.com/states/telangana/2023/aug/15/realty-bubblehyderabad-has-onelakhunsold-housing-inventory-2605394.amp

Realty bubble: Hyderabad has one lakh unsold housing inventory

By Sunny Baski| Express News Service | Published: 15th August 2023 10:14 AM

 

articleImage Image used for representational purpose only.

 

HYDERABAD: Despite a slowdown in property registrations and buyers not coming forward to invest in real estate due to unaffordability, developers continue to jack up the prices of apartments.

Earlier, middle-class buyers used to purchase 2 BHK flats. However, with the change in lifestyle, most of them are preferring 3 BHK flats, which cost more than Rs one crore even on the outskirts. Even for 2 BHKs, builders are quoting Rs 70 lakh. There are only a few flats available for Rs 50 lakh–Rs 60 lakh, but they are very far away from city limits.

As per the data by Knight Frank, a total of 15,355 properties were registered during H1 2023 (Jan–June) with a total value of Rs 16,712 crore. 

When compared with the previous half year H2 2023 (July–Dec), the property registrations were 16,353. When both half-years were compared, 1,000 registrations have come down.

 

 

For the past one and a half years, a large number of flats have been lying vacant owing to high prices along with the increase in bank loan interest rates. 

Interestingly, Hyderabad has nearly one lakh unsold inventory, which is the second highest in the country, as per a PropEquity report.

Moreover, the city has an inventory overhang of 16 months, which is the highest in the country. A few months ago, the inventory overhang was around 24 months. 

Artificial realty boom being created: Builder

The realtors attributed the increase in unsold inventory to the rising cost of construction and land rates. This has put a big burden on buyers. On the other hand, launches have been more in Hyderabad which is also one of the reasons for the high unsold inventory.

Meanwhile, a few realtors are saying that an artificial realty boom is being created in the city by quoting high prices in land auctions. For instance in the surroundings of Budvel, both land and flat rates are set to rise by 20 per cent or even higher in areas like Kismatpur, Bandlaguda, Narsingi, and Peerancheru. In these areas already land is costing over Rs 1 lakh per sq. yard. A couple of years ago, the land prices in these areas were Rs 50,000 per sq. yard.

N Praveen, president of Telangana Realtors Association, said that real estate has come down in the last year as rising prices have become a big burden for buyers.

“The high land prices being quoted in auction is only a gimmick to increase the real estate in nearby localities as many developers are having many acres of land in surrounding areas,” he said.

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for NRIs, investing in India is not an easy task anymore.. few points based on observations from my close circle..

1. people who went in early 2000s realized that their kids will not come to India.. they also mostly cannot settle here... few of my frnds came here just to sell their flats/properties in India..

2. their parents/relatives are getting old/expiring here.. no one really left to monitor their properties.. also headache of encroachments, legal issues etc. .etc..

3. India real estate growth is good.. but now US also giving good returns.. and safe to invest there rather than handling in India with none really looks of their properties here..

4. 7L per year cap for funds going out of India.. otherwise pay tax and under tax scrutiny.. so considering the govt sale deed cost & actual market value, difficult to show a white amount to transfer outside India with lot of tax.

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Covid time lo lot of the US people did 2+ jobs, so ah extra job money antha hyd lo invested. now okka job ee sarigga untado ledo thelini situation so no one wants to invest at the moment and most of them are in saving mode.

malli emaina market crash ayyi rates normal ki vachhe varaku investments slow ga ne untai

 

inka AP lo babu vasthe malli automatic ga hyd rates thaggutai

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affordability is one of the thing .. when 3 bedroom apartment went from 45 lakhs to 1.5 c ... apart from IT job chese batch ki evariki aa range lo salaries peragav kadha .. it vallaki kuda anadariiki aa range hikes  levvu ..... these rates are killing middle class people .... amaravati lo kuda present konni areas lo almost double rates cheputhunaru .... 

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3 minutes ago, OneAndOnlyMKC said:

Nxt akkada babu garu vasthe inka gattiga affect vuntundi anduke babu garu ravoddu ani jagan gadiki minchi vellaki vuntundi 😆

Hyd won't get effected, it keeps growing. 2005-2014 most useless fellows ruled , still growth happened. Any city once momentum starts it just keeps growing. 

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47 minutes ago, Peter Griffin said:

affordability is one of the thing .. when 3 bedroom apartment went from 45 lakhs to 1.5 c ... apart from IT job chese batch ki evariki aa range lo salaries peragav kadha .. it vallaki kuda anadariiki aa range hikes  levvu ..... these rates are killing middle class people .... amaravati lo kuda present konni areas lo almost double rates cheputhunaru .... 

Amaravati is affordable ga brother now 

25k lope vastundhi ga 

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5 minutes ago, NatuGadu said:

CBN continously 2 times vachhina dare cheyyaru... malla jagga vasthadu ... 

antha insecurity avasaram ledu brother 

Last time ante project starting lone undhi 

If CBN gets power then project will be completed in three years time and rest doesn’t matter na 

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1 minute ago, Nfan from 1982 said:

antha insecurity avasaram ledu brother 

Last time ante project starting lone undhi 

If CBN gets power then project will be completed in three years time and rest doesn’t matter na 

akkada vundi xxxxxx gadu....antha develop iyyi set ina.....investors ni paripoyela chestadu......amaravati develop avvalante jagan anevadu AP political picture lo vundakudadu

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7 minutes ago, Bleed_Blue said:

akkada vundi xxxxxx gadu....antha develop iyyi set ina.....investors ni paripoyela chestadu......amaravati develop avvalante jagan anevadu AP political picture lo vundakudadu

present industrialists ki j tax vesthunnaaru. future lo gated communities meedha koodaa j tax vesthaaru.

edho oka news lo chadivaa. krishna district lo oka doctor ni 5 crores ivvamani mla manushulu demand chesthe ivvanannnaadu. ivvakapothe car lo ganjayi petti bokkalo thosthamannaadu. entho kontha samarpinchukunnaadu doctor. 

evadainaa baagunte vaadi daggara ki velli extort chesthaaru. companies laakkuntaaru.  ysr family ap politics lo vunnantha varaku buddhi vunna vaadu invest cheyyadu.

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23 minutes ago, NatuGadu said:

CBN continously 2 times vachhina dare cheyyaru... malla jagga vasthadu ... 

 

13 minutes ago, Bleed_Blue said:

akkada vundi xxxxxx gadu....antha develop iyyi set ina.....investors ni paripoyela chestadu......amaravati develop avvalante jagan anevadu AP political picture lo vundakudadu

 

6 minutes ago, TarakMokshu99 said:

True.

YCP Decision on capital is effecting future.

He is one time wonder bros 

New things will emerge after his defeat 

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1 hour ago, uravis said:

Hyd won't get effected, it keeps growing. 2005-2014 most useless fellows ruled , still growth happened. Any city once momentum starts it just keeps growing. 

Still happened coz it's affordable top to bottom then,now it's not, if new player emerges with better plans, definite ga rates won't go up.. But prob with andhra re batch entante emi లేకుండానే hyd Rates cheptaru, single right reason vundadu aa land rates ki .... Happynest lantivi govt take up chesi success ayithe tht wd be better model avvochu to keep rates in control.. 

 

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4 hours ago, Peter Griffin said:

affordability is one of the thing .. when 3 bedroom apartment went from 45 lakhs to 1.5 c ... apart from IT job chese batch ki evariki aa range lo salaries peragav kadha .. it vallaki kuda anadariiki aa range hikes  levvu ..... these rates are killing middle class people .... amaravati lo kuda present konni areas lo almost double rates cheputhunaru .... 

Agree

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US real estate investments mana vallu chala large scale lo start chesaru....groups ga form ayyi lands lontunnaru....returns kooda bagunnayi...!!!

AP lo Jaggadu pote Hyd lo NRI investments inka baga taggutai...!!! less than 35 seats vaste, party vundadu ee sari...so no possible future threat for Amaravathi...!!!

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2 hours ago, KingV said:

US real estate investments mana vallu chala large scale lo start chesaru....groups ga form ayyi lands lontunnaru....returns kooda bagunnayi...!!!

AP lo Jaggadu pote Hyd lo NRI investments inka baga taggutai...!!! less than 35 seats vaste, party vundadu ee sari...so no possible future threat for Amaravathi...!!!

US lo kuda dallas thappa anni chotla RE momentum thaggipoyindi. US lo ipudu Interest Rates 7% min. unnayi. alagani house rates ekkuva padaledu. peragatam ledu. something fishy. 

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1 hour ago, Vihari said:

US lo kuda dallas thappa anni chotla RE momentum thaggipoyindi. US lo ipudu Interest Rates 7% min. unnayi. alagani house rates ekkuva padaledu. peragatam ledu. something fishy. 

Slow ayyindi for sure...!!!

konni pockets ite inka hot gane vunnai, especially lands...LLC form chesi mostly with pooled money to kontunnaru...loan needed only when they go for some development on that land...!!!

Couple of my friends in RE think that is good time buy land with cash, 2 years down the line once interest rates start to cool off they see huge potential...!!!

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 Housing is for living not for speculation but Hyd RE is over speculating using recent auctions, it would be not affordable to even high paid salaries like 1 CR for 3BHK in west .

no stopping for Hyd but only affordability will hit hard .

Hyd RE now riding a tiger 

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Amaravathi has super potential but trust factor on government is all time low .

Ippudu TDP vachina next time YSRCP radani cheppalemu . It will lead to short term and less gains on your investment. 

2 times ravali TDP 🤝

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