The new real T
After a brief lull, recent developments on the political front have again pushed the issue of a separate Telangana back onto the centre-stage.
However, others in the industry argue that the real estate has stuck its roots firmly and it has insulated itself to a large extent from influences such as T-factor.
And while arguments and debates ensue on possible fallout of the present moves, ‘T-factor’ has also crept back into deliberations of those involved in real estate.
On earlier occasions too the same had happened. The real estate boom at its peak did witness some fluctuations in earlier instances and from developers to speculators to those genuinely keen on acquiring a property for themselves are confronted with those questions again. Will the latest developments affect the real estate prospects? Will the prices which rose considerably before halting their upward march few months back, tumble in the wake of ‘T-factor’?
Opinions are divided on whether the ‘T-factor’ is likely to influence the real estate scenario which has started to consolidate itself around the suburbs in particular. What originally started as an off shoot of the IT developments in the city few years back, the growth at some stage appears to have shrugged off some of the initial influences to spread wide across the city and encompass suburbs on all sides.
One school of thought maintain that if ‘T-factor’ gains more momentum, it might end up casting a shadow on the real estate scenario by sowing certain unease in the minds of investors, scaring away the speculators who had played a big role in escalating the land and apartment prices and also forcing real buyers put on hold their intentions for some time.
Many might be wary about putting their money and might prefer to stay out till a clear picture emerges. However, others in the industry argue that the real estate has stuck its roots firmly and it has insulated itself to a large extent from influences such as T-factor.
Projects in pipeline
More than 150 high rises are on drawings boards of the developers and the city and its suburbs would not pause in terms of the property growth at least for some time to come, points out a leading developer. Issues such as economics in terms of affordability and practicalities involved in demand-supply equation is what will decide the fate and not ‘T-factor’, they aver. Most developers point out that both land cost and apartment prices have stopped growing in the last eight to nine months.
This, they attribute to correction after a steep and unexpected rise and refuse to acknowledge it as a result of an external influence. “Remember that prices stabilised and consolidated in the last six months in particular, when the ‘T-factor’ was not that active. And when correction is happening, others factors fail to impact it,” says Y. Kiron of Suchir India. After unprecedented boom, a correction has started to set a baseline for property prices.
And when a baseline was falling in place, the chances of it being either drastically pulled down or raised high and that too from issues such as ‘T-factor’ might not be realistic, it is pointed out.
One growth corridor that has been particularly active in recent times has been Gachibowli-Narsingi-Poppulguda where all the top developers are actively pursuing projects and the land prices presently range between Rs.3 crore to Rs.12 crore per acre. This, while an acre at Gachibowli in some cases has raised the stakes to even Rs.25 crore. This against a standard calculation of Rs.8 crore per acre that builders consider as a benchmark of sorts.
Planning around 2 lakh sft built up area for an acre with these prices, the cost of construction material, labour and taxations and a builder will be offering flats at around Rs.3,500 to Rs.4,000 a square feet.
This is where the affordability aspect might come into question in the longer run and impact the real estate and not issues such as ‘T-factor’ or elections, it is observed.
Source : The Hindu
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iam totally perplexed as to why a few politicians are crying out for a seperate state of telangana, when we were doing fine as one single state. but if ever telangana materialises, then i would want a seperate greater hyderabad to be formed as it has people from various states and not only from telangana.
Politicians leave us alone
Separate state is the design of unscrupulos politicians making people pawns. If they get ministry or governor post, they don’t speak. what a Shame. People should resist these creatures.
Demand growth, development and opprtunities. But live with telugu unity. Otherwise repent later.