HYDERABAD: More than the hike in home loan interest rates and escalating prices of construction material, the Telangana tangle has turned out to be a dampener for prospective home buyers in Hyderabad.The sale of flats and independent houses has come down by about 30 to 40 percent in the state capital except near the Hitec City and its surrounding areas where the sales have in fact gone up by 10 to 15 per cent.The Hyderabad metropolitan area has been identified as one of the fastest growing cities in the country.Owning an abode in the city is everyone’s dream but it is slowly turning out to be just a daydream.After the software boom picked up, the real estate field in the twin cities has attained a terrific growth.People from different parts of the state and other states started purchasing houses here notwithstanding the high costs.But soon after the Telangana movement’s intensification in 2009, the real estate market started crumbling.However, it turned out to be a boon for genuine home buyers as speculators vanished from the market and prices became affordable.When things are slightly improving, the escalating prices of construction material and a steep hike in home loan interest rates has dampened the mood of home buyers forcing them to adopt a wait-and-watch stance.The Sakala Janula Samme has just worsened the situation.“Without waiting for the outcome of the regional movement, I wanted to purchase a flat in Hyderabad as an investment.But the prospect of a real estate boom that will increase the property price looks bleak.Hence, I dropped the plans immediately after the agitations resumed last month,” said S Deepthi, a software engineer who hails from Gudivada in Krishna district.Another techie, G Ravi Kumar, echoes the fears of Deepthi.“Unless the Telangana issue is settled, it is not worth purchasing a house in Hyderabad.We do not know where this agitation will lead to.If I have to move to another city for job, it would be a waste investment in case things continue to be the same,” he said.According to information, the buyers who are risking to purchase flats and independent houses are opting for finished and semi-finished flats instead of houses planned but are yet to be grounded.P Prem Kumar, president of AP Real Estate Developers Association (APREDA), admitted that the ongoing Sakala Janula Samme had had its effect on the real estate market in the twin cities.“The construction cost has gone up by about 20 percent apart from escalation of home loan interest rates,” said Prem Kumar.Navya Constructions chairman P Sreedhar Reddy said the real estate market was normal near the Hitec City and its surrounding area like Miyapur, Kukatpally, Chandanagar, Beeramguda, and Gawchibowli, while it was going down in other parts of the city.Though the building cost rose, builders were forced to sell independent houses and flats at old rates due to low demand.Interestingly, people from outside AP are showing interest in investing in Hyderabad while people in the state are in a fix due to volatile situation in the capital
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