The impact of the cancellation of G.O. 111 on the Greater Hyderabad Real estate sector has been huge. This has a major impact on Western Hyderabad, which has a long history of urban reality. The sales of luxury homes in these areas have been steadily declining. Customers are reluctant to make purchases on projects costing more than Rs 6,000 per square foot.
Thinking that prices will go down, instead of buying flats in high-priced apartments, they want to buy individual houses and villas in 84 villages for the same price. As a result, sales at the High Rise and Luxury projects in West Hyderabad are falling. The revenue from registrations also fell sharply.
Home purchases and launches are high in West Hyderabad due to IT and IT-based companies. The area accounts for 60 percent of city realty. In areas like Kukatpally, Madhapur, Kondapur, Gachibowli, Rayadurg, Kokapet, Gopanpally, and Nallagandla, residential complexes of about 10 crore square feet are under the construction. These are estimated to be around 50,000 units.
Land prices were higher in Kollur, Tellapur, Nallagandla, Gopanpally, Nanakramguda, Narsingi, Kokapeta, Financial District, and Puppalaguda as they are not under G.O. 111. Last year GHMC approved 83 high-rise buildings in these areas. Of these, 13 skyscrapers are more than 30 stories high. Sales, however, have been on a downward spiral with the cancelation of G.O. 111.
In the past, most of the construction companies in the Kokapet, Narsingi, and Puppalaguda areas were selling heavily pre-launch. Buyers used to invest heavily due to low prices. The buyers are now going around construction companies to cancel their Pre-launch agreements and refund their already paid amounts.