With Rs 100 cr an acre, What’s the reality of realty in TS?

The TRS party has previously condemned the auctions held by the former government in then-undivided Andhra Pradesh. Even KTR Was totally against those auctions. Now BRS MLC Dasoju Shravan has criticized the then Chief Minister Kiran Kumar Reddy over auctions in June 2012 and claimed that Kiran Kumar Reddy’s administration was acting like a real estate brokerage. KCR, the then-leader of the TRS, once lashed out at the opposition during a TV interview when he questioned the land’s then-one lakh rupee price in Banjara Hills. Just nine years after the Telangana government came to power, it is noteworthy that an acre at the Kokapet auction was sold for Rs. 100 crore. The most recent auctions in Kokapet, however, raise concerns about the future of Hyderabad’s real estate market. Whether these kinds of auctions would destroy the real estate sector in Telangana or help it grow is a subject of debate among experts.

Recently, the Telangana state cabinet said that GO 111 had been lifted. A GO on this subject hasn’t yet been released, so it’s unclear exactly what’s going on. Although the administration has proudly said that it will create a “green zone” in various places, no master plan has been created. In light of this, the auction by HMDA in Kokapet has become a prestigious deal for the government. There were several questions around the Kokapet auction, such as: Would GO 111 have any impact on it? If the builders purchase the land at a higher price, can they sell the apartments at a higher price? Would anyone truly pay a high price to purchase it? plus a lot more. As predicted by some, HMDA sold plots at high rates. Three acres of land were purchased by a city-based company called Happy Mobiles for roughly Rs. 100 crore. The question at hand is how this will affect the realty world.

* Kokapet is a hot cake. There is no denying it. The then-Union State Government sold Kokapet lands at an auction for a record price after realising the unique charms of this area. It is known that the government finally won the legal dispute over the rights to those lands. The government made the decision to develop Kokapet on a global scale after the formation of Telangana State. It put GO 50 into effect. The potential to build a higher built-up area on an acre of land was therefore given to builders. Because of this, the majority of developers are building skyscrapers in competition.

Will the prices go up?

Several companies purchased land in the first round of Kokapet auctions by paying more than Rs. 40 crore per acre. This has led to a surge in land prices throughout the neighbourhood, including Narsingi, Kollur, Tellapur, Velimela, Pati, Ghanapur, Mokila, Shankarpally, and Kismatpur, among others. Some of the new construction companies have constructed apartments in the most awkward spaces, where there isn’t even sufficient width for two cars to pass. The dreams of the land owners are endless after the most recent auction, where one acre was sold for Rs. 100 crore per acre! Some contractors are already complaining that the high land prices will prevent them from constructing skyscrapers. Others have chosen to leave Kokapet and construct apartments in other areas.

* Since the government lifted the ban on GO 111, several apartments have reportedly remained unsold in Kokapet. Sales of more than fifty percent finished projects have decreased, excluding those of some major builders. The fundamental cause of this, according to some experts, is the election season. However, flats are not sold in projects where a square ft costs around Rs. 7,000 to Rs. 8,000. In this regard, several developers are raising concerns about how sales in projects where land has been purchased for Rs. 100 crore per acre will proceed. 90 percent of the developers aren’t happy with the Rs. 100 crore pricing in Kokapet, while the government and certain large builders are.

If this is the case, how should common people live?

There is a discussion going on all over India about Rs. 100 crore per acre in Neopolis. The value of an acre has crossed Rs. 100 crore, surpassing all metro cities. With this, we all need to think about where the real estate market is heading. The onus lies on the central and state governments to protect the future of the common people. Similarly, our construction sector must also think about this. There are some reasons for this sudden rise in rates. It has been ten years since master plans for Hyderabad and other towns were made public. Due to the inclusion of some unnecessary zones in the master plans established in the undivided Andhra Pradesh, the demand in the rest of the zones is increasing. – Murali Krishna Reddy, Chairman, Credai Telangana.