The real estate market in Hyderabad, especially areas like Kokapet-Neopolis, is currently facing significant challenges.
Companies that launched projects in this area are under intense pressure, with the prices of land purchased during high-demand times now seeming out of sync with the current market conditions.
Builders are struggling to meet deadlines, and many are uncertain about what the future holds, leaving those who purchased flats in free launches waiting anxiously for completion and handover.
This issue is not isolated to Kokapet; high-end real estate across Hyderabad is grappling with similar problems.
Builders are finding it difficult to break even on their investments due to skyrocketing land costs, compounded by pressures from RERA regulations.
The once-thriving market for luxurious gated communities now faces a slowdown, as developers are finding it increasingly hard to secure large tracts of land necessary for such projects.
At the same time, the demand for conventional apartments is on the decline.
Middle-class buyers are increasingly turning to second-hand apartments priced under Rs 1 crore, as newer properties, especially gated communities, have become far more expensive. This shrinking supply of non-gated apartments is further exacerbating the situation.
Hyderabad's real estate market is already suffering from high supply and low demand, with added pressure from external factors.
The new laws under Donald Trump in USA are discouraging migration from Telugu-speaking regions, further affecting the demand for real estate, especially among NRIs. If this trend continues, Hyderabad’s real estate market could face even steeper setbacks.
Ultimately, the city’s real estate sector will need a significant revival to overcome these hurdles and regain momentum.
