Although the lockdown has been increased and many large-scale construction projects have come to a standstill, property developers are optimistic about picking up Hyderabad's lucrative real estate market. Many builders think that the lockdown's negative impact is expected to last no longer than six months once it is lifted. And in this time, they hope that the banks, as well as the central and state governments, will take measures to allow people to buy property without hesitation.
National Association of Realtors-India (NAR-India) National President A. Sumanth Reddy said the current stagnation in the real estate sector is temporary. We return to normal once things get better. Sumanth says that when the market is booming, everyone has shown interest in acquiring a house even with premium prices. But in reality, buying a home is lucrative when the market is down. In a recent interview, he outlined his thoughts about current and future real estate conditions.
Let’s deep-dive in Hyderabad real estate market pre and post COVID lockdown.
Current Real Estate Market Condition
Many buyers are ready to buy a house if prices fall when compared to the property price before lockdown. This is a complete fraction of the 2008 situation at that time builders tried to sell a property with reduced rates, but no one came forward to purchase. Yet now it's a different situation, I don't think the real estate market would be in the downturn because during the lockdown period house is one which guarded people to stay safe and happy.
Is it possible for Real Estate Prices to Fall?
Prices of land are likely to decrease, and under-construction building prices are not expected to fall. Because currently, there is a shortage of workers, availability of steel, and other equipment, which could increase the cost of construction. There is also no possibility that new developments would push down costs. Hyderabad real estate prices are already very attractive, and they will rise according to the natural curve of time. There may be some decrease in some properties which are already completed and ready for possession.
How long does it take for the market to recover?
Once the vaccine for the coronavirus is available, the real estate market conditions will return to normal. It will take at least six months for the market to get in pitch. The Hyderabad real estate market has been booming for three years, and it is believed that the builders will be able to cope with these short bursts and bounce back.
Future of Real Estate Sector
The government has established several development plans with high expectations for revenue from the real estate. There are strong government measures and opportunities to keep the market from falling. In the wake of Corona, some countries are preparing to make real estate investments at some places in India besides China. Already Hyderabad is regarded as the best market in price comparison across the top 10 cities in India. Hyderabad is expected to attract investment to the country. All these are market-driven, and with the arrival of new companies, under construction buildings are likely to be complete.
What changes are we going to see after the lockdown?
The impact of Covid-19 has been severe in tourism. Plans to develop and expand new hotels are postponed. It is probable that the healthcare organizations will expand as the corona effect in the town is high. Those who want to live in safe places have the option to move to the suburbs of the city. If one is planning to stay near the workplace, Satellite Townships will be available. We expect that those affected by the lockdown will be willing to go some distance for the widest interiors. Nowadays, people are more driven toward high street markets than toward shopping malls.
Considering its rapid growth in education, work opportunities, medical facilities, retail, hospitality, and other businesses, the Hyderabad residential real estate sector is widely regarded as low risk and high return sources. With government, special initiatives Hyderabad real estate sector will be revived and will remain a favorite investment destination.
By: Shailaja K