Hyderabad realty to notably regain normal state rapidly than other cities
As per Telangana confederation of Real estate developers and association of India, The real estate market in Hyderabad will bounce back much faster than other cities as positive sentiment still prevails and sales are happening in the city despite Covid-19 pandemic. On an analysis, it’s discovered that Enquiries improved a lot and sales are happening. However, sales vary from project to project. But sentiment is not low in Hyderabad though that is not the case with other cities like Mumbai and New Delhi.
It is expected that a significant bounce-back in sales by around September this year. “As there is no widespread negativity and pessimism in the market, the expectation in the Hyderabad market to bounce back much faster than other cities. One of the financial major had sanctioned six project loans in Hyderabad during Covid-19 period and all of them are fresh loans. It sanctioned the loans without reducing the value of any of the projects, which is very positive sign”.
Market has slowed down a bit in Hyderabad and Telangana. That’s a fact. But there is no way property prices will go down. In the wake of increase in cement, steel prices and labour expenses, construction cost has gone up by 10 per cent now. So, projects will become unviable if prices are cut at this juncture.
Most of the major markets were experiencing slowdown even during pre-Covid days. But the Hyderabad market was doing well. So, inventory has not piled up. Moreover, developers are not under any financial stress and so they are not desperate to sell their stock immediately. Many developers did not opt for loan moratorium announced by the Centre. This clearly shows that real estate companies in Hyderabad are financially strong.
The commercial real estate sector was doing extremely well in Hyderabad in pre-Covid days. “With new trends like work from home, this segment might take a hit as companies will not immediately expand their operations in the city.