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‘Real estate has hit a plateau’
Yoganand
High prices of housing have left a major chunk of the middle class stranded with its aspirations for a dwelling of own.Yet, affordable housing for them could be made possible if the government offers relief and concessions to private sector, suggests G.Y oganand, Managing Director, Manjeera Construction in an interview with
T. Lalith Singh
On political situation and its impact on real estate:
The byelections might not show much, but general elections which are around the corner could have some impact. The property sales are happening and they are not really affected. But when the State goes to poll in coming months, there could be some wait-and-watch approach from the developers and buyers. However, the real estate has hit a plateau. In certain pockets, the prices went unexpectedly high but they rolled back to average and this should not be treated as an overall fall. The prices are not going to come down any further. Also, April to July usually witness a dull period and for various reasons including a belief that it is inauspicious period, the sales do not keep rising.
There are many who are expecting a drop in home loan interest rates and preferring to wait. The moment it happens, real estate will again start to boom.
On NRI’s picking properties:
Around 60 per cent of investments have been by the NRIs from the US and UK. However, there are reports that property prices have plummeted in the US and our people there could feel interested in investing in the US itself. This could have some effect on the overall situation here.
On the rise in construction material prices:
It is not only steel and cement costs that have gone up. From plumbing to electrical to woodwork, every material need has become costly and this is going to force the prices higher. The construction costs have risen even due to the scarcity of labour.
On high costs and the middle class:
If the government is keen on having the private sector contribute in making middle class aspirations of housing come true, it should take certain steps. Some relief and concessions in taxation, registration costs and permission fee should be offered. If this is done for housing meant for the middle class, then the private sector too will pitch in. At the same time, the home loan interests for the middle class should be made more affordable.
On real estate in the city:
The outer ring road when it becomes a reality will throw up a lot of potential for housing. Instead of going to nearby districts in search of a dwelling, people will seek to relocate alongside the ORR since it gives a lot of commuting convenience.
On Manjeera Group:
We have executed projects covering an area of 2 million sft and are rated among the reputed real estate groups in the State. We have embarked on a project at Kukatpally covering 15.62 lakh sft of commercial and residential area in Kukatpally and Manjeera Diamond Towers at Gachibowli is another project which is spread over 18 acres with villas and apartments as prime components. The group is also into hospitality and is now coming up with Aditya Sarovar Premier at Gachibowli.
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