Hyd luxury home sales sluggish ahead of LS polls

The State Assembly elections and Lok Sabha polls are back to back. Generally, the HNIs will not be ready to invest during this period. However, this phase is only for the time being - Sunil Chandra Reddy, President, Naredco Telangana

Hyderabad: Hyderabad residential market has witnessed a dip in the property registrations in January 2024 when compared to the same month previous year. According to the sources in the market, the residential property sales in the affordable and mid-range categories of Rs30-80 lakh remained stable, while the premium segment of Rs80 lakh - Rs1.5 crore was affected in the wake of elections in the State.

The luxury segment received the biggest jolt ever as the sales of housing units worth Rs1 crore and above declined drastically during last month. Till mid last year, there was a huge demand for these units from the high net worth individuals (HNIs), non-resident Indians (NRIs) and other investors. However, the sales enquiries have come down in recent times due to the elections and speculations.

A majority of the high-end property buyers are in wait-and-watch mode. Today, the real estate market in the city is being driven by the end-users. The investors are a bit influenced by the rumours and warnings being spread by the unscrupulous political leaders.

Also, there was a notion among a set of people that the real estate sector in the State will face severe challenges owing to the policies of the Congress government. To put a check on this guesswork, the industry experts seek a positive statement from the State government to boost investor confidence in the residential market of the city.

MK Rajesh, a city-based real estate consultant and owner of Infopropertiez, says: “Despite market conditions, end-users keep buying the residential units but the property investors will hesitate during the time of elections. The selling of open plots and 2BHK flats was not impacted in the last month. There was a slowdown only in the business of premium and high-end properties.”

“The HNIs always invest in branded luxury properties with the best infrastructure facilities. They are cautiously watching the current situation. Only to reverse the previous government’s decisions, the new government should make mistakes which may hinder the growth of the city. Before changing the infrastructural plans, it must take expert opinion on the viability,” he said.

“When the Outer Ring Road (ORR) was first conceptualised by Nara Chandrababu Naidu, former Chief Minister, the route was different to the one constructed by the government led by Late YS Rajasekhar Reddy. The ORR alignment has changed, but the project was not cancelled by the successive Chief Ministers. Similarly, the Regional Ring Road (RRR) would be completed by the present government,” he added.

Sunil Chandra Reddy, President of National Real Estate Development Council (NAREDCO) Telangana Chapter, said: “The new government is bringing good schemes and improving connectivity in the city. It is looking to develop industry clusters between the ORR and RRR which will generate employment. Public transport, infra development and job creation will automatically promote real estate growth.”

Speaking about the slowdown in the luxury housing sales, he said: “The State Assembly elections and Lok Sabha Elections are back to back. Generally, the HNIs will not be ready to invest during this period. However, this phase is only for the time being. The new government is making the right moves and Hyderabad real estate growth story will continue to flourish.”

V Rajashekar Reddy, President of Confederation of Real Estate Developers’ Associations of India (Credai) Hyderabad, said: “It is a regular trend, the property sales decline in January every year as this month is not considered auspicious for new beginnings. The housing market will pick up from February-end. That’s the reason Credai Hyderabad Property Show has been announced on March 8-10, 2024.”

He further said, “The slowdown in sales is not related to the policies of the State government or upcoming Lok Sabha Elections There is no negative impact of the new government. The Chief Minister has a long term vision and created positive vibes among the public. I am sure he will retain their trust by taking correct steps in the right direction.”

Thrashing all the rumours on the new government as an unwanted negative assessment, Rajashekar Reddy said: “Whatever some say, Foxconn will not stop setting up its manufacturing unit in Hyderabad. The global capability centres (GCCs) will continue to operate here. The construction of the ongoing projects will not come to a halt. The employment will be generated as usual in the city.”

“The world is looking towards the development of this city. Telugu NRIs across the globe are coming to invest here. Average housing sales are increasing gradually to reach one lakh units per annum. With the development of the city, the housing requirements will also increase. Now, the inventory is growing, and the sales will also grow accordingly in the coming two-three years,” he opined.