In Hyderabad

Sky is falling … when it comes to the hyped up apartment prices of Hyderabad.. Prices of apartments have come down so quickly that even the strongest of the developers are now getting desparate to dump their inventory.

It was getting obvious over the past few weeks as the builder cartel of Hyderabad tried everything to convince people by buying  space in real estate sections of all major news papers talking about why apartment prices will never weaken in Hyderabad. They even used the news and print media to spread their stories but looks like no one showed up to buy in the end. 

This week I heard from a realtor that  Land-Owner partners are willing to dump their units in the apartment projects at what ever rate they can get.  He told me an example of how a Land owner who gave his 2000 yards for apartment development is all worried and is willing to sell his share of the units for less than 2000 per sq ft while the developer is still driving 3000 per sq ft.

So whats a good rate now ?.

I feel that spending any more than 2500-3000 per sq ft for a good construction in Hyderabad is an overkill.  Aparna Sarovar, L&T and every body else are in a panic mode and have dropped their asking prices, so there is no need to buy from the smaller developers at a premium. 

Today we hit the lowest point when aparna sarovar announced on front right bottom of DC that they are offering guaranteed gifts to buyers of apartments including a few cars and the latest Jetta 1.9 TDI. There may be a lot of fine print, but think about a year ago when developers were not even willing to talk to you unless you went in with an advance check or cash. 

DC Bangalore edition had a better offer on its e-edition.  Make a down payment of 1 Lakh for the apartment and get 7500 Rs Month in rent until the project is complete and the project also comes with a buy back guarantee.  If Lehman could not stay afloat, you think the developer will really be around to buy your apartment back ?.

All opinions are mine and mine only.. Do your own research before you jump.. Whether its R2I or Apartments or Land or the penny stocks that seem to be back in fashion in India now .. Look before you leap !!!