The Hyderabad real estate market, particularly areas like Kokapet-Neopolis, is currently facing severe challenges. The rising cost of land, which was purchased during periods of high demand, is now misaligned with current market conditions, creating significant strain for builders and developers. As a result, many projects are running behind schedule, and developers are struggling to meet deadlines. This uncertainty leaves buyers of flats in free launches anxious about the completion and handover of their properties.
The issues extend beyond Kokapet, as the entire high-end real estate market in Hyderabad is grappling with similar difficulties. Builders are unable to break even on their investments due to skyrocketing land prices and the added pressure of complying with stringent RERA regulations. The once-booming market for luxurious gated communities has slowed significantly, as developers find it challenging to secure large tracts of land required for such projects.
Meanwhile, demand for traditional apartments is also on the decline, particularly among the middle class. Buyers are increasingly opting for second-hand apartments priced below Rs 1 crore, as newer properties, especially gated communities, have become prohibitively expensive. This shift in preference is contributing to a shortage of non-gated apartments, further deepening the crisis.
To complicate matters, external factors such as new laws in the USA under Donald Trump are discouraging migration from Telugu-speaking regions, reducing demand for real estate among NRIs. If this trend continues, Hyderabad’s real estate market could face even greater setbacks.
In summary, Hyderabad’s real estate market is experiencing significant struggles, and it will require a major revitalization to overcome the current challenges and restore its momentum.
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