As the Congress government assumed power in Telangana in an unexpected manner, there will be some confusion among real estate investors. Investors who expected flat prices in Hyderabad to rise further in the next five years are in for a big disappointment. Some bought flats and plots at a higher price than the market rate, while others bought at a lower rate in the prelaunch. If the BRS government came to power as they thought, no one would have any problems. When the Congress party took over power, there was a sudden change in the situation.
After nine and a half years of the formation of Telangana state, the Congress party came to power for the first time. Since the formation of a separate state, the BRS government has tried to develop the construction sector. Former Chief Minister KCR, who understood the problems faced by this sector, sanctioned more than 10 GOs in 2016. There has been no looking back for the real estate sector in Hyderabad ever since.
Concern among builders…
After coming to power for the second time, there is no doubt that the city planning sector has gained an international reputation. Mainly after Ivanka Trump visited the city, Hyderabad became famous as a global city. After that, many national and international organisations came forward to step into Hyderabad. In this sequence, radical changes have taken place in the real sector since 2018. Gradually, the price of land increased. Domestic and foreign investors started focusing on Hyderabad. The number of skyscrapers in the Financial District, Kokapet, Nanakranguda, Tellapur, Narsingi, and Gachibowli in the city has increased. At a time when the development of Hyderabad was thought to be irreversible, the Congress’s victory has increased the anxiety of some builders. The tension started as to what the future would be like. What is the situation of the developers who bought land for one hundred crore per acre in Kokapet? What is the status of the builders who bought at a rate of more than Rs. 40 crore in Budvel? How many developers start projects out of it? Because if a new project is started in Kokapet, each flat should be priced at a minimum of Rs 14,000 per square ft. But in Budvel, Rs 7,000 to 8,000 should be priced. And, in the backdrop of a change in government, will investors buy flats at marginal rates? There is major doubt about this in the city. So, the Congress government should lend a helping hand to the real estate sector in Hyderabad.
