They say that real estate is slowing down, but at the same time, the prices of high end gated communities are skyrocketing.
For instance, a popular gated community in the Neopolis region has quoted a price of Rs 17,000 per sft with possession expected by 2030. That means a five-year wait.
Buyers have to assume that by 2030, the price will rise to around Rs 30,000 per sft, Only then would their investment and interest costs make sense.
But is that realistic? No one knows; one simply has to take the leap on trust.
Indeed, the promoters are citing My Home Bhooja as an example, which has already reached between Rs 20,000 and Rs 25,000 per sft indicating that Rs 30,000 per sq. ft. for the Neopolis venture could be a cakewalk. However, experience suggests that nothing should be believed blindly.
At this rate, the total cost of a basic 3-bedroom flat in such a community touches Rs 5 crore, considering interiors, government stamp duties and other overheads.
Investing such a large amount requires high-paying jobs and in most cases, both husband and wife need to be in top earning roles.
Already, those who needed homes have bought one for living and another for investment. In such a case, how are these high-end gated communities mushrooming? With what confidence?
Well, when there is no demand, builders usually do not construct. Since these projects are coming up, it suggests that there is demand, perhaps from NRIs.
However, NRIs these days feel that investing in Indian flats is not a good option, as ROI is very low and can sometimes result in losses. Unless they plan to return and live here, they are not buying.
So overall, the situation does not look very impressive for real estate. Yet, contrary to this, luxury gated communities continue to emerge, creating a confusing picture. It definitely calls for a thorough survey to understand what is actually happening.
An insider says that this buzz and activity are mostly limited to Kokapet, Financial District and Gachibowli regions, not the rest of Hyderabad.
Many builders, including those developing gated communities, are reportedly struggling to sell units even after offering discounts.
