|
|
|
General Forum: Hyderabad | | Real Estate Boom In Hyderabad and Vizag...Is it a real boom | |
| naa thokkalo realestate 1 crore anta 2 crore eppudu kottaga 14 crs per acare anta assalu ee thokkalo realterlaku cr ante zeros enni unatayo kuda teluvadhu andhuke andharini chaduvukonamani cheppedhi chaduvukonte real estate meedhi ki thought radhu .....
mundhu kone vallaki siggu ledhu assalu antha value undha ledha ani chudatam ledhu
Posted by: Mr. srikanthreddy srikanthreddy At: 27, Jul 2006 1:59:46 PM IST
I think its the following reasons...
1. First and most important is the govt projects, these are being addressed at a large scale and it has never happened that ONE city is initiating so many projects within a year.
2. People in Hyd are getting more than what they can chew, literally. With so many projects coming up it requires a LOT of infrastructure support. Talk abt ORR, it has been going on and on for last so many years, I know its not a small project but still compared to what companies and changes are coming it is sure a small project and it fails to take off even TODAY 7/24 and again it ran into issues. Now without roads and without proper development how will the large companies survive.
3. Real estage builders.. they started hyping land prices and it has gone up so high that even the local builders and sitting flat unable to do anything at all as land prices are no where in their own range. For example builders who used to buy lands and build apartments in the past and now with no work. Bcoz they now cannot afford to buy land. So they are looking for land for development. The % ratio used to be 70(builder)-30(land owner). But now it went to 50-50 which is a very huge change.
4. Yes I agree agent are cause of this hype BUT the major benefitors are the polititians who own acres and acres of lands. The agents are small people who make money by showing lands and all they get it about 20-30K on each transaction. And people who make huge transactions like crores NEVER pay anything to agents as they are big shots and they deal with other owners directly.
5. NRI factor, in the past if a land if for sale say 10 lakhs, people used to bargain from 8 lakhs and so on. But now if some land is for sale say for 10 lakhs and if owner almost agrees to sell a land to someone an NRI enters the transaction offering 11 lakhs and obviously he get it. And matter doesnt end there, the word spreads like fire and the land price in the area gets hiked by 1 lakh from 10 to 11. Now think abt N number of such transactions.. well the price is bound to go up right.
6. Greedy people - people who hear abt some land sale 10 miles away and start quoting that price.. as they know that this property value WILL be that after 6 months.. so basically quoting a price of Future but not present value.
7. Big shots - Rich get richer.. poor get poorer. Well people with large pieces of lands do not sell to normal people. They sell to only same community people or relatives. That way they dont entertain new investors. Even if they do then the buyer has to pay much more than market price. Well dont be astonished but NRI's DO buy the lands.
8.No, the interest rates are not low now, infact more - But the loan processing process did become very easy and its easy to get a loan now than before, so everyone is taking a loan to make investments. And since it is a loan people now are not giving much thought abt repayment. As salaries are high no one really bothers so much so pay 24 lakhs for apartment where its value is only 20-21 lakhs. So easy money is one reason.
9. Can you believe that a land costing 50 lakhs around Gachibowli and hitech city now costs 3 crores or more? Well its a fact and worse part is YOU CANNOT even buy now as nothing is available for sale. All the for sale lands you see on classifieds are either in litigation or lands that locals dont buy bcoz of some reasons.. So even the litigation lands are getting sold out like hot cakes, just may be for a little less price.. mind you I said little less.
Now what can a middle class person do at this time? Well if you take my suggestion,
1.Buy ONLY HUDA Approved plots. Only AFTER you SEE the Final approval. Do not go by initial approval, as many layouts got their approvals cancelled before reaching final stage.
2. Friends get together and buy a land and build apartments by giving a contract to a developer(dont pay more than Rs.1500 per SFT for construction), this does not include land cost by the way.
3. Buy land how much ever it is by taking loans, as we cannot buy anything with salary savings.
Prices are already high BUT they are going to go up more. Same thing happened when TRS first came up. People thought prices will go down, all the registrations STOPPED for 3 months BUT the prices never went down but remain same for 3 months and in the 4th month they went up by 25%(more than expected). So with all the projects and all the prices will sure go up so if you want to make some money then invest wisely in real estate but do not get carried away by hype but negotiate with patience but ACT quick dont waste time during negotiation. But make sure you check papers and verify from atleast 3 different sources.
Hope this helps....
Posted by: Mr. Nice At: 25, Jul 2006 4:00:23 AM IST
Hi Madhavi garu,
I think there will definately a real estate boom kani presently most of the real estate agents have bought lot's of acres of land in outskirts of Hyd and Creating a Hype that the land value will be increasing more in future.
Presently it looks like it will increase. But i think it is more hype than the real scenario. If you think the about the following reasons there might be some view on the present scenario.
Positive Aspects:
1.Outer Ring road is going to be constructed.
2.More Companies are going to Come.
3.International Airport Construction.
Negative Aspects:
1.Real Estate Agents are creating Hype for the Low Class investors/ NRI people to think that there is real boom in the near future and land cost will become double.
2.More NRI income is invested and thus the Real Estate Agents are creating Hype even more that the land is going to be scarce. (In real how many of the buyers are going to occupy the sold lands in near future ..i guess very few...)
3.Bank Interest Rates are low so people are buying more lands thinking that they get concession from tax and presently banks stopped giving loans to lands and also hiked interest rates so this will reduce buying lands/houses.
4.Once buying of Land is reduced then also there will be less people to buy so the rates will come down i guess.
I think most of the Hype is similar to the Telanga State formation that rose the prices of Real Estate near Guntur, Vizar areas and later subsided ..
Some one Can post their views so that we can get clear picture of the present going trend.....
Regards,
Krishna.
Posted by: Mr. Krishna Chaitanya P At: 21, Jun 2006 7:31:35 PM IST
Hi Friends,
Recently I read an article about future of software industry and realestate boom in India by Maharshi Garu.Many readers also contibuted to that topic with their comments.Writer and as well as readers focused only on IT industry not on Realestate.
Now a days in India mainly developing cities like hyderabad and vizag the realestate industry is developing( is it really developing ????) like anything. And investors in that industry mainly are middle class people. So I found a neccesscity to discuss about the topic " RealEstate Boom is Real or Fake?"
frnds lets discuss and lets share our thoughts and ideas
Thanks,
Madhavi.
Posted by: Miss Madhavi Gujja At: 7, Jun 2006 2:09:02 AM IST
| |
|
|
|
| Advertisements |
|
|
|
|
| Advertisements |
|
.gif)
