The Telangana Real Estate Developers Association (TREDA) secretary general, Sunil Chandra Reddy, on October 23, 2017, said that property prices are likely to go up by around Rs 400 to Rs 450 per sq ft, in the next few months, because of demonetisation, RERA and GST. He was replying to a query on the impact of the note ban, the Real Estate (Regulation and Development) Act (RERA) and the GST switchover in the real estate sector, on the end-consumer.
According to Reddy, the Hyderabad real estate market is quite stable. He said, “It is one of the most affordable markets in the country, in terms of cost of real estate. With so many infrastructure projects planned, Hyderabad is a very steady market and one that will grow in the next two-three years. We think the prices will definitely go up and obviously, because of huge commercial absorption, the residential rates are also bound to go up. Owing to the demand and also because of the higher cost impact of the new legislations (brought) by the government, we estimate an increase in prices of both, commercial and residential projects.”
TREDA executive vice-president, R Chalapathi Rao, said in the long-term these measures will prove beneficial for the sector. “We have to welcome these changes. Over a period of time, business will run on the basis of transparency and confidence. Initially, there will be teething problems. The government has good intentions and TREDA is welcoming and supporting all these measures.”
Earlier, association president P Ravinder Rao, announced that the 8th edition of ‘TREDA Property Show’ would commence on October 27, 2017. As many as 166 stalls of real estate developers, builders, banks and financial institutions will be set up during the three-day event. Rao said TREDA members are in the process of constructing a total of 8,691 units under the 2-bedroom housing project of the state government.