If uncertainty continues, it may hit the sector which is already going through a lean patch
Let there be clarity, either way. That's what the real estate sector looks forward to as the D-day for the report of Srikrishna Committee approaches.
Struggling to find recovery path after the boom went awry in the last couple of years, real estate sector has been going through a lean patch and has pinned its hopes on some clarity emerging on the Telangana issue.
While other metros have started stepping out of the effects of recession to reclaim footing, the scene in city has remained mired in confusion given the T-factor and political uncertainties.
“The real estate need some clarity and cannot operate with this kind of dilemmas. Uncertainty is just going to kill the prospects of city's growth and the more the Telangana issue is dragged, more the city's progress is going to get stagnant,” says K. Ravinder Reddy, chairman and managing director, Janapriya Properties.
Some in the industry are distressed at the property sales dipping further with the Srikishna Committee report date inching close. “As it is, the sales get affected till Sankranti festival since this period is considered inauspicious for property acquisition. But the T-factor has further affected it,” points out C. Prabhakar Rao, president, Greater Hyderabad Builders Federation.
If prevailing ambiguity on Telangana drags on, the real estate might find it hard to recover at least for another six to seven months. “Property issues are going to be badly affected if a clear cut solution, either way, does not emerge now. Else, it might be a long uncertain business period for us,” he says.
With investors staying out of the arena, it is the end-user's market now. Yet, the actual users does not seem to be in a hurry to pick property, says Anand Reddy, executive director, PBEL City. “Hardly 15 per cent of enquiries are converting into sales now. The prices have hit a plateau,” he says.
Wait and watch policy
Correction took place during the year 2008-09 with the prices tags dropping from a range of Rs.4,000 to Rs.4,500 per sft to the present Rs.2,600 to Rs.2,900 per sft, it is pointed out. There could be a wait and watch attitude among buyers hoping for the prices to come down, but that might not actually happen, he feels.