A dull stupor continues to hang over the realty market in Hyderabad following bifurcation. While the KCR administration expected that the people of Andhra in Hyderabad will reconcile themselves to the partition and invest in realty once again, their expectations have gone wrong.
Bookings continue to be lackluster. Till recently, people who have decided to invest in Hyderabad are now investing in their hometowns.
A techie from Andhra working in Hyderabad earlier would purchase a flat in the usual areas such as Hi-tech city, Madhapur, Gachi Bowli, Manikonda etc and decide to settle down for good. But now, while he continues to work here, he is making his investment back in his hometown in Andhra.
And it makes good sense too! In fact, during partition, many people who had given deposits of Rs 1 lakh to Rs 5 lakh for a new home decided to forego their advances rather than complete their purchase.
So, the people who have benefitted greatly from the drop in prices are our fellow Indians from North India. There is a significant chunk of North Indian population working in Hyderabad in the IT sector. For them, the prices are too good to be true as they cannot make a purchase at the same prices in Pune, Mumbai etc. Hence, they are winding up the deals. But nevertheless, their numbers are obviously not enough to spark off a buying boom.
The people with money (Andhras) are not willing to invest in Hyderabad anymore and the people who want to invest in Hyderabad (Telanganites) do not have the money. And stuck in the middle, holding their heads in despair are the realtors.
