Real Estate: Hyderabad To Face Heavy Blow

[Scurvy]

18 minutes ago, Swatkat said:

I guess more supply inatlundhi @kevinUsa  it has to fall down one day. @JambaKrantu bro neke teliyali asalu matter gachibowli king vi. 

I too agree chaala apartments vunnayi and too

many constructions happening everywhere and less buyers i felt when visited india. Best investing in stocks anpisundi especially for NRis

[hyperbole]

32 minutes ago, Raven_Raeyes said:

Excess supply vunapudu slowdown common ae...daniki manollu collapse, buscuit ayipoindi, padipoindi ani nana hungama chestaru...

Hyd reality market is now more organised than ever, okapudu builders used to put up all of their inventory on sale right from day 1 but now a days, they are more organised and they are now like releasing few units at a time, to control the excess supply.

For eg:, there is 10 tower development, and it is planned over 5 years, okappudu aithe all those 10 towers units used to put up on sale from day-1 but right now, 10 towers lo hardly one tower at a sale vastundi, observed this new trend among all major developments. 

Chala national developers invest chestunnaru. YSR time la they won auctions like DLF, RMZ, Salarpuria, embassy etc..but they got burnt because almost all of the lands were mired in litigations and government too lifted their hands not returning money or show then alternative sites. These companies are coming back but not individually because they are still feared but partnering with major local players like MyHome, Aurobindo, Hetero, vasavi group etc who got clout locally and can resolve more quickly through bureaucratic hurdles. Cash flow is a lesser problem for local builders as outside money is coming in. These major national builders like Prestige, RMZ and embassy are major catalysts since they have big marketing arms who bring clients to Hyderabad and also they have access to international funds, last year they divested some share of their companies  to canadian pension funds for billions of dollars. Yes, it is more established now. 

[ysshakeela]

36 minutes ago, Swatkat said:

I dont think the article was speculative. The report you mentioned was published on march 21 2021.

here is another one from deccan chroncile

Hyderabad real estate market may collapse by March

DECCAN CHRONICLE. | S.UMAMAHESHWAR

Published Dec 3, 2021, 9:47 am IST

Updated Dec 3, 2021, 4:12 pm IST

According to data by Anarock Property Consultants, the builders are sitting on an unsold inventory of 58,535 units as of September 30

 The pre-launch sale concept has brought an already over-supplied Hyderabad real estate market on the verge of a correction. (Photo: PTI/File)

Hyderabad: A 24-year-old expatriate working in one of the wealthy Scandinavian countries calls up his friend to seek his advice on an offer that he came to know through one of WhatsApps groups. The offer was enticing. It required him to buy a piece of land on the outskirts of Hyderabad along with a few others, with a promise that the capital appreciation would be 100 per cent within a couple of years. This offer in real estate terminology is referred to as the prelaunch sale of Undivided Land Share (ULS).

The expatriate’s friend knew the dynamics of the real estate market and was loath to advise him to go ahead, for he knew the pitfalls. But the expatriate was gung-ho about the return on investment and was confident about it, going by the advice of his other friends.

 

 

While his friend somehow wriggled out of the predicament of offering wrong advice or encouraging the expatriate to invest in a shaky concept, the Undivided Land Share concept swept through the Hyderabad real estate market — tapping its preys through the social media, without attracting regulatory oversight and hoodwinking the RERA regulations.

The pre-launch sale of the Undivided Land Share concept involves a builder pooling together tens or hundreds of people — depending on the project size — who could make the full payment of the proposed flat. The builder would use the money pooled in from such individuals to buy the land from the landlord. The land would be divided among the prospective buyers and registered in their names as the Undivided Land Share.

 

The builder then gets into a development agreement with this group of people, who would be promised flats in proportion to the land that they own.

The key aspect that makes this pre-launch sale offer mouth-watering is steep discounts. The builder would typically offer the flat in the project, which is just on paper without any government sanctions, at one-third of the market price. The prospective buyers would be made to believe that capital appreciation would at least double in just two years or so.

While on top of it, the offer appears to be a winwin solution for the builder and the buyer, the ULS has left organised construction companies fuming, and experts, tracking the real estate sector, worrying about the viability and sustainability of the sector. “The Hyderabad real estate market will crash by March,” declares Dr Y. Kiron, the chief executive officer of SuchirIndia Group.

 

 

Elaborating his dire prediction, Dr Kiron says, “Not very long ago, the Hyderabad real estate market used to be the endusers market, where a majority of the buyers had bought houses to live in. But now, the prelaunch sale concept has attracted pure speculators on the premise that they could cash out after the project completion. Even if the project gets completed, the investors and the builder would not find people to buy property at market prices, leaving them with huge unsold stock.”

Most people are, in fact, Dr Kiron claims, ready to wait for the pre-launch sale offers from the other builders than shell out the market price for buying a flat in an already constructed project. “This would, ultimately, turn Hyderabad into a seller’s market and force them to resort to a steep correction in the real estate prices,” he said.

 

 

According to data released by Anarock Property Consultants, the builders are sitting on an unsold inventory of 58,535 units as of September 30.

The inventory on June 30 was 50,580 units. While nearly 8,000 units were
added to the market between July to September, the real estate sector managed to sell only 6,735 units in this period, leading to an oversupply in the market.

“Hyderabad turned out to be the only city in India with the highest increase in the available inventory with nearly 58,535 units available for sale. Furthermore, a sharp rise in the new supply over the past few quarters has increased the city’s available inventory by 113 per cent compared to the same period in the previous year,” said Prashant Thakur, director, Anarock Property Consultants in a statement.

 

 

The pre-launch sale concept has brought an already over-supplied Hyderabad real estate market on the verge of a correction, says C.Shekar Reddy, the past national president of Credai.

Shekhar Reddy says the pre-launch sale concept violates the Real Estate Regulatory Authority regulations. “The moment the buyers purchase the land and enter into a development agreement with the builder, they would be liable to those buying the flats later on. But many people get into this trap unaware of the legal complications,” he explains.

Apart from the open auction of land parcels by the government, he also believes that the prelaunch sale concept is also responsible for a spurt in property prices in the city.

 

 

Concurring with this hypothesis, Veera Babu, the managing director of Cushman & Wakefield, claims that one of the arguments against the builders resorting to pre-launch sale arrangements is that they were not negotiating hard with the landlord.

Though he admitted that the price correction could happen in the Hyderabad market, he refused to put a timeline to it. “The past records show that the real estate prices correct once in every 10 years. However, there has not been one in Hyderabad since 2008,” Veera Babu said.

People, who opted for the pre-launch sale offers, would be in deep trouble if for some reason the builder fails to construct the project completely.

 

 

“The pre-launch sale was already used to the hilt in other markets like Noida in the National Capital Region among others and people have suffered immensely when major builders could not complete the projects. In Hyderabad, however, the companies without any previous record are opting for a pre-launch sale model. But if they go bankrupt or leave the unviable project, the buyers would have no recourse and they cannot do much with the undivided land,” he explained.

Vishal Srivastav of Mahaveer Constructions is optimistic about the prospects of the city’s real estate market, but insists that people must do their homework about the builder before they buy a flat.

 

 

 

 

Bokka ley baa... adhi Decaan Chronicle Cheddi gaadidhi.

Telangana lo Cheddi gaallu andharoo maa Dora ni voodinchataaniki trying... anthe.

I have lot of friends across all segments - job seekers, just landed jobs, well experienced, well settled and rich category ones.

All say one thing - "If you invest in Hyderabad, you will never go bust".

Except during the Prime of Telangana Movement in 2011, the house/land prices in Hyd never went down.

 

[Swatkat]

11 minutes ago, ysshakeela said:

Bokka ley baa... adhi Decaan Chronicle Cheddi gaadidhi.

Telangana lo Cheddi gaallu andharoo maa Dora ni voodinchataaniki trying... anthe.

I have lot of friends across all segments - job seekers, just landed jobs, well experienced, well settled and rich category ones.

All say one thing - "If you invest in Hyderabad, you will never go bust".

Except during the Prime of Telangana Movement in 2011, the house/land prices in Hyd never went down.

 

Ayyundochu. Lets see next year. Hyd ane kadhu usa ki emina ithey dani impact world motham untadhi. Next year nakendhuko theda kodthundhi.

[JambaKrantu]

36 minutes ago, Swatkat said:

I guess more supply inatlundhi @kevinUsa  it has to fall down one day. @JambaKrantu bro neke teliyali asalu matter gachibowli king vi. 

Hyderabad is going through an explosive growth phase right now. If things go as planned just the kokapet area in 10 years will have more office space than rest of the office space currently available Hyderabad. Interestingly office space leasing is very strong with so many new MNCs opening/expanding shop here. Lots and lots of North Indian families are moving here because of the weather, culture, business growth rates and opportunities available here. Right now there is no Tier I city in India that can match Hyderabad’s business environment, planning or culture. Mumbai too crowded, Delhi Pollution, Bangalore Bad planning and traffic, Chennai culture/floods. The US consulate that is currently built in Financial city, Hyderabad will be the world’s largest US consulate by size and processing volume. 

The current apartment construction is based on this growth projection. Worst case scenario there may be a 10 to 20% correction but even that will be a quick phase till the inventory is absorbed and then prices will keep growing again. But land prices and villa prices will keep growing no questions asked. 

[Telugodura456]

12 minutes ago, JambaKrantu said:

Hyderabad is going through an explosive growth phase right now. If things go as planned just the kokapet area in 10 years will have more office space than rest of the office space currently available Hyderabad. Interestingly office space leasing is very strong with so many new MNCs opening/expanding shop here. Lots and lots of North Indian families are moving here because of the weather, culture, business growth rates and opportunities available here. Right now there is no Tier I city in India that can match Hyderabad’s business environment, planning or culture. Mumbai too crowded, Delhi Pollution, Bangalore Bad planning and traffic, Chennai culture/floods. The US consulate that is currently built in Financial city, Hyderabad will be the world’s largest US consulate by size and processing volume. 

The current apartment construction is based on this growth projection. Worst case scenario there may be a 10 to 20% correction but even that will be a quick phase till the inventory is absorbed and then prices will keep growing again. But land prices and villa prices will keep growing no questions asked. 

Yes north indian families/bjp/rss will move in floods there. You can dance and play music  for them in celebration like an extra in their shaadi.

[JambaKrantu]

33 minutes ago, ysshakeela said:

Bokka ley baa... adhi Decaan Chronicle Cheddi gaadidhi.

Telangana lo Cheddi gaallu andharoo maa Dora ni voodinchataaniki trying... anthe.

 

Arey nuvvevado naku teliyadu kani lavadalo arguments rayoddu. In every caste there will be for and against people based in their business interests. If anything pulka batch to which I think you belong to has been completely marginalized in both the telugu states.

[Swatkat]

33 minutes ago, JambaKrantu said:

Hyderabad is going through an explosive growth phase right now. If things go as planned just the kokapet area in 10 years will have more office space than rest of the office space currently available Hyderabad. Interestingly office space leasing is very strong with so many new MNCs opening/expanding shop here. Lots and lots of North Indian families are moving here because of the weather, culture, business growth rates and opportunities available here. Right now there is no Tier I city in India that can match Hyderabad’s business environment, planning or culture. Mumbai too crowded, Delhi Pollution, Bangalore Bad planning and traffic, Chennai culture/floods. The US consulate that is currently built in Financial city, Hyderabad will be the world’s largest US consulate by size and processing volume. 

The current apartment construction is based on this growth projection. Worst case scenario there may be a 10 to 20% correction but even that will be a quick phase till the inventory is absorbed and then prices will keep growing again. But land prices and villa prices will keep growing no questions asked. 

Yes bro i hear that northies are moving to hyd. Paducheyakunda untey chaalu ah pan parag gallu religion adhi idhi ani.

[ysshakeela]

33 minutes ago, JambaKrantu said:

Arey nuvvevado naku teliyadu kani lavadalo arguments rayoddu. In every caste there will be for and against people based in their business interests. If anything pulka batch to which I think you belong to has been completely marginalized in both the telugu states.

Vochaadandi Cheddi gaadu...

FY Kind Info, I am hard core anti-TDP and anti-Pulka

I support Christian Yerika Jagga just because he is decimating Pulka Caste dominance in Coastal Andhra.

Jai Yerikala Cheddi, Christian Cheddi.. Jai Jai.

All SC and SCs can now inter marry with Christian Cheddies from Rayalseema.

[kevinUsa]

2 hours ago, Swatkat said:

I guess more supply inatlundhi @kevinUsa  it has to fall down one day. @JambaKrantu bro neke teliyali asalu matter gachibowli king vi. 

India lo 3-4 metros lo Hyderabad is.most livable city after banglore and Pune

Enduku bust avutundi

[Telugodura456]

There is defenitely no doubt that hyderabad is one of the most livable cities in india. Thats clear since 2001 or so. But the question is for whom is this livability working for.