There was a continuous rising trend, over several Months. However, the last couple of weeks has seen some cooling down! Fall in prices of land (Acres) in outer areas, primarily contributed by Assigned Land Issue has been reported.
The reasons for cooling:
-Karim Nagar Election
-Assigned Land Controversy
-HADA Final Master Plan
-Extention of Dates for Tellapur Auction by HUDA
-Non Release of Fab Policy
However, the price of plots in inner city areas / Hitec City etc. are unlikely to be affected. Large amount of low priced Agricultural Land are held by middlemen (realtors).
The premium market remains unaffected. No expectation for any fall in Hitec, Gachibowli, Nallagdla, Tellapur, Narsingi, Kokapet, Along Express Highway and nearby areas. The price in these locations are driven by upcoming commercial developments and impact would be minimal.
Obviously, they would be at great risk, if prices were to fall. Hence, whenever there is an issue, they would palm off land, at a discount, resulting in fall in prices. This is happening now, too. However, land which quotes in Corers would not get affected, since they are held by Owners and very few would panic and sell. Well, even if there is a 5 to 10% fall, it helps none, anyway, with prices being so high!Apartment price rise curve has flattened. Not much action since last 2 Months. Obviously, the expected commencement of construction is holding back price rise. Buyers seem to be waiting for evaluating new projects, rather than buying old ones. There would be good opportunities to pick, like the Tower Project (APH210) at Rs.2750/sft before the next, sudden price rise.
Builders do not seem to be rushing in, as was feared when the Building Permission Rules were relaxed. Hence, the expected large scale availability, may get staggered over the next 2 to 4 years. By that time, the number of home buyers would also increase substantially.
Premium Locations:
The premium market remains unaffected. No expectation for any fall in Hitec, Gachibowli, Nallagdla, Tellapur, Narsingi, Kokapet, Along Express Highway and nearby areas. The price in these locations are driven by upcoming commercial developments and impact would be minimal.
Shamshabad:
Plot prices would remain steady along Srisailam Highway, nearer to Airport/Fabcity. But interior plots may be available, at good discount now. The lack of buyer interest due to the issues discussed here, has made developers nervous. Time is ripe to strike good bargain and you would see developers breaking down. But do note that buying low priced plots, in inner areas of Shamshabad, is not a bright idea, unless you have a 6 to 10 year long vision! Airport would be operational by 2008 March. All Approved Layouts very close to Airport would see a good Jump. Also layouts close to ORR from Airport to Tukkuguda, should be in demand.
Other Areas:
There is tentativeness all around Medchal, Shameerpet, Ghatkesar, Vijayawada/Sagar Roads. IIT news seem to have suddenly perked up Mumbai Highway with far off projects like Doyen Layout, almost doubling in last 10 days! In other areas, if you had located a good piece of land or plot to buy, you could try and negotiate prices down. Complete Report with extensive details of Assigned Land matters is Available at: www.exclventures.com/hotnews.asp
Source: ExclVentures. Minor modifications made to fit format.
