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Will prices crash at Begumpet?
Posted by Srini Uppala | December 3, 2007 | 465 views
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Loading ...When Hyderabad airport shifts to Shamshabad, would its former residence at Begumpet lose its sheen, as far as property prices go? Perhaps, yes.
Industry experts say that the skyward trend of real estate prices, especially in Begumpet, would be checked once the airport moves to Shamshabad. While some say this would take four to five years during which Begumpet would be dethroned from its ‘heart of the city’ status, others say the difference in prices would be obvious within the first few months. But all agree on one thing: the slump is inevitable.
“There may be no fall in prices but a further rise may get checked,” says Suchir India group CEO Y Kiron. He says that the prevailing rate of Rs 6,000-6,500 per sq ft in Begumpet could have touched a whopping Rs 8,000-10,000 per sq ft over the next one year if the airport hadn’t shifted. “It wont happen now,” Kiron says.
Industry observers say that with increasing number of people preferring to fly, an area promising proximity and connectivity to the airport does enjoy better prices — a fact obvious from land prices in and around Shamshabad
touching the sky.
It’s the “moving downtown” effect that Hyderabad has been faced with four to five times over the past few decades, says Doyen Constructions MD Prem Kumar. While he believes that prices in Begumpet wouldn’t see an immediate fall, there would be a certain stabilisation over a period of few years. After all, he notes that in a few years “neither Begumpet nor Banjara Hills would be the centre of the city”. Much like the earlier transition of the city centre from Abids to Basheerbagh to Punjagutta, the current movement would also take its toll on property rates.
Besides, experts note that there are other factors working against Begumpet. Being a densely populated area (30,000 to 40,000 people living within 1 km); with perhaps the largest number of apartments in the city; and tremendous pressure on the existing infrastructure, there is little scope for further growth. With no space for malls or companies to set shop, there is no scope for further price hike.
SOURCES:
Times of India
Topics: Real Estate |
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