Realtors celebrate TRS debacle

Even as the Telangana Rashtra Samithi (TRS) is licking its wounds, realtors in and around the city are rejoicing. Property dealers feel that the rout of the party demanding a separate state for Telangana in the bypolls would only unshackle the otherwise dead and down real estate market.
According to realtors, property registrations had almost stopped in and around the city since the TRS MLAs and MPs tendered their resignations on March 4, 2008. This, in fact, turned out to be a big blow to the already ailing property market. “For the last few months we have been unable to sell properties, nor get enquiries from prospective buyers,” K Madhava Reddy, a leading realtor in Ghatkesar, said.
Realtors feel that the ‘T’ tempo has now been completely grounded and it would take another three years or so for it to gain the lost momentum. “For the next one year there should not be any problem,” Reddy said.
Further, consumers too might heave a sigh of relief since the realtors argue that there would not be any increase in prices at this point of time.
“It’s not the price that’s very important now. It’s the continuity of transactions. In a situation where there were no customers at all, property dealers and developers can’t afford a price hike immediately. One might find the prices shooting up down the line over a period of six months,” marketing head of a housing development company told media.
“The Telangana element was at its best till Sunday. It’s a fact that the land registrations had come to a halt in several places around the city in the last one month. But, nobody is able to explain the impact of the formation of Telangana on the property market. It’s unfortunate that the realtors take a beating during every election or a political development,” Y Kiron, CEO of SuchirIndia, said.
Though the realtors complain about the lack of demand, land prices, however, have not declined. Instead, property prices are seen moving up every week.
“There is no way the price can come down now. Most of the property that’s up for sale has moved into the hands of brokers from the land owners. These middlemen borrowed money and invested on the land. As long as they pay interest on the borrowed money, prices keep moving up as they pass on their financial cost to the property buyers,” an industry source said.
For instance, what was costing about Rs 6,000 per sq yard last month is at Rs 6,300 now. “I have already invested on the property by borrowing money from financiers. I can’t sell for a loss. I’ll wait for demand to pick up,” J Kamesh, another relator, said.