Hyderabad Real Estate Market taking a breather

This is just a commentary of what I am seeing.. dont send me emails saying that I am a nay sayer.. I am not, I am still investing but in good areas that are closer to the city..

Hyderabad real estate market seems to be taking a breather to digest the high run ups it has seen in the recent past. Primarily the rush by individuals to acquire 200 - 400 yd plots and properties in unknown forest lands way beyond the Airport and Maheshwaram seems to be causing the slow down. There is no stretch of land in between that can really be acquired to start projects, a drive through this area made me realize that many folks have relied too much on brokers advise than really investigating the area.

Recent telangana sentiment is also adding fuel to this scenario and property values are rising like crazy in the Vijayawada area, primarily in areas like Kanur, KanchikaCherla, Gannavaram ( VJA Airport ) etc. In addition the area between VJA and Guntur is also on a alltime high due to predictions that it will become the new capital. I am not sure if telangana will ever materialize but many voices are now asking for Telangana, Rayalaseema, Uttarandhra ( North Andhra ) and Costal Andhra. "Do you think the state is big enough to be broken up into 4 parts ?. I dont..". Also, a prediction that Vizag will be the capital incase of telangana break up is causing rise of property values in vishakapatnam also.

Cash strapped investors are also adding fuel to the current correction by trying to get rid of their properties at what ever price. If you are holding estate in the Gucchibowli, Nanakramguda, Kondapur, Hitec area, you are fine, the dip here doesnt seem to be as bad as the outskirts. A group of us had to pullback our offer on a large investment even after paying a token advance, since land right next door was being offered to us by cash strapped investors for much lower prices.

All that said, the growth is Hyderabad is not slowing down at all. A good opportunity to land deals in the prime areas of the city where the prices went beyond the regular market levels. The premium levels will certainly come down, but not the base land values. So, for a 40K per yd land in Gucchibowli, there is a 20K premium built in and I expect that these values to stabilize around 25 to 30K.

Couple of my real estate contacts have indicated that smart money is now running away from Hyderabad to Bangalore and Vishakapatnam.

As always.. "Its your money, so invest it wisely.. dont take my word or for that matter anyone's word for granted.. do your homework before making an investment"