subject: Apartments and Flats in Hyderabad [print this page] Apartments and Flats in Hyderabad Apartments and Flats in Hyderabad
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Real estate Developers in Hyderabad have adopted a cautious approach to new projects though some prospective buyers have been showing sustained interest since January 2009. With government support to the real estate sector coming in the form of some lowering of interest rates by banks, there are early indications of a revival of the market after a tough 2008 fourth quarter.
However, Builders fell that the Government can do a lot more to rekindle interest, which including bringing down the service tax imposed on residential property and enhancing the interest rate rebate further.
Industry players says that the focus now is on affordable housing and expanding the scope of their product offerings.
As Builders has become cautious with regard to new investments, some feel that if will take a while for the plans to materialist. The trends vary depending on the nature of property, Commercial property, in particular, is going through a rough patch. The general slow down has seen the rental values in various parts of the city falling.
The managing Director of Mr. Aliens, Mr. Hari Challa, is of the view that through buyer interest has been raising especially last two months, the total no of transactions have come down. The Managing Director of Loco Infra tech, Mr.Venkatesh Babu, said that the market conditions are tough and the general economic has impacted every player in the sector.
"However we need to distinguish between residential and office cum commercial space. The trends are commercial in these broad areas. In resi space, we see continued interest but buyers are seeing lower prices due to current economic conditions," Mr,Babu
However, Mr. Babu feels that there is marked change in the commercial property space, with large Developers adopting a wait-and-watch approach.
Reducing Costs
The Chief executive officer ofCyber City Mr. Uttam Korupol, said that the Government continuous to be a big beneficiary of various taxes imposed on buyers. By refusing some of the imposts, it will significantly help bring down overall costs for buyers.
Cyber City's developing an integrated township with an investment of Rs 550-600 crore near Hyderabad. Mr Uttam feels that reducing the service tax on residential property, extending the ceiling limit of Rs 1.5 lakh on interest and hiking the benefits under Section 80 of the I-T Act,will encourage new property purchases.
With fear of job looses due to the slowdown in several sectors, especially information technology and financial services, there is a tendency to postpone purchases till the general economic environment becomes more stable.
The other aspect that is causing a delay in deals coming through is the fact that buyers expect property prices to fall further.
