Hyderabad realtors optimistic of bouncing back post lockdown

HYDERABAD: Although the lockdown has been extended and many large-scale construction projects have come to a standstill, property developers are optimistic about Hyderabad’s lucrative real estate market picking up, albeit after a slight sluggish resumption, once the restrictions are lifted.  

A common line of thought among the developers is that the negative effect of the lockdown is expected to last for not more than six months after it is lifted and in this period they hope that the banks, as well as the Central and State governments, would take up measures to encourage people to buy property without hesitation.

CII Telangana, Infrastructure and Real Estate Committee Convener, C Shekar Reddy said that the banks must lower interest rates on housing loans and the government should provide interest subvention on housing loans for its employees. He also stressed on the need for manufacturers of raw materials like cement and steel to reduce the rates, to cushion the impact of overhead costs of lockdown on developers.

Telangana Real Estate Developers Association (TREDA) treasurer K Sreedhar Reddy pointed out, “For four to five months after the lockdown, there would be a slowdown in the business. But after that the city will bounce back.”

During this period, he said that the State government should reduce registration fee and the Central government should reduce GST on residential property, apart from providing incentives to home buyers during the year-end festive season.

Those who are looking to buy property after the lockdown is lifted, it might be a good time as some developers might reduce prices by five to ten per cent to boost sales.

Vasavi Group, Chairman and Managing Director, Vijay Kumar, said, “Such a situation never existed earlier but we are sure things will be set right within six months of lifting the lockdown. Some developers in necessity of some liquidity might reduce property prices by five to ten per cent.”  

All real estate developers are also pinning their hopes on Hyderabad becoming a manufacturing hub and absorb office space as there are theories that the world’s focus might shift to India as a manufacturing destination post-Covid pandemic.