Epaper
The real estate industry that was the major stepping stone for the city of Hyderabad to come into the world focus has now become a barren tale of losses, suicides, dashed hopes and what not. Given the fact that the growth rate depended mainly on the NRI funds, the economic recession in the US has shown its power and thousands of people who have literally changed their lifestyle in the real estate dream have now landed in a major mess.
A large chunk of the downfall can also be attributed to the success of K Chandrasekhar Rao and his TRS party that gave the big companies to come up with a new concept of Andhra and Telangana and start selling lands. Crores of rupees have been spent in buying the lands and today not one unit linked to the real estate stream is in a position to breathe properly.
The farmers who got used to lavish lifestyle after tasting money ended up with big loans from banks for cars and houses and now they are unable to pay up. Many youngsters who took to this field with the idea of quick money have now lost their livelihood and are on the verge of suicides and absconding. Many companies who have spent crores of rupees buying acres of land are now hunting flies unable to send a single plot. They have now compromised that a break even price is more than sufficient profit.
Hot spots like Kokapet, Narsingi, Puppalaguda, Madhapur, Shamshabad and many other places were given undue hype during the boom and crores of transactions took place by selling the ‘real’ dreams. This was the scene about an year ago and today, things have turned for the worse with not a single penny being spent and those lands that were priced at crores per acre are not finding a buyer even at the rate of few paltry lakhs.
The recession began about a year back and just when experts were thinking that it will be alright in a year or two, the financial crisis in the US market and the current political confusions have added to the woes. On the smarter side, few big companies who anticipated such things have slowly shouldered few ventures on the lesser players and have taken their cushion.
This has shown an adverse affect on the financial institutions here unable to deal with the increasing loan defaulters and their money stuck with many who jumped into the real estate stream. Even the registrations department has shown an alarming dip in the number of registrations given the present condition and there seems to be no ray of hope at least for sometime.
At this rate, it will be a long while before things will come back to normalcy and it remains to be seen how many lives get plundered in this resurrection.
