hyderabad real estate is slow down

Please read the headline today in Eenadu(04/15/2008) saying about the realestate market slowdown. I would say this slowdown is well anticipated and expected as the growth was some what unbelievable.

In addition to all the causes explained in the article, lifting the urban land ceiling might also be one of the reasons. As I have been writing from past 2 years, that realestate market will slowdown and prices will come down during the election time as there is uncertainity in the politiclal situation, big shots may want to cash out to fight elections/finish the irrigation projects etc.

How ever, I believe that if some one is investing for long term, they should consider this as opportunity than getting scared away as one will be finding good bargains. Please follow the link or find 04/15/2008's Eenadu to read the article in detail.


This article lists the following reasons for the current slowdown in Hyderabad.

  • Real estate slowdown all across India in general.
  • Dollar weakening caused NRI's to slowdown and also IT Professional's salries are not going up like before.
  • Market might have hit peak.
  • Separate Telangana issue.
  • Indian Stock market crash.
  • Construction costs went up a lot.

In addition I would say

  • Being an election year, big shots may want to cash out.
  • More land available now because of lifting the urban land ceiling

Reasons that it will come back pretty soon in my opinion

  • There are not many cities in India with infrastructe that Hyderabad has, may be Int'l airport or prospective metro project, nice roads etc.
  • Talent pool.

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