Monday, January 15, 2007

Hyderabad : Land rates go south


HYDERABAD: The cost of construction might have doubled in the past six months owing to increasing demand for various inputs, but the real estate market on the other hand is on a real downward spiral.

Whether it is due to the Karimnagar by-election result or the talk of Second State Reorganisation Commission (SSRC), the land transactions around the city have almost come to a standstill.

The prices have either dipped by 10-20 per cent on the outskirts or remained unchanged for the past one month. While some locations see a few enquiries, business is slack in popular destinations such as Shamshabad or along the proposed ORR.

"There is no real estate activity in areas such as Maheshwaram and Shamshabad. People are not willing to sell less than what they had bought, which is around Rs 10,000 per square yard as compared to Rs 30,000 per square yard in Madhapur, but there are no takers even if the prices are slashed.

Land and plots in urban areas are still better off. They are at least getting enquiries but in rural areas, the situation is bad," said Ajay Kumar Jetta, a real estate dealer.

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