Trump Towers is emerging as the new phenomenon in Hyderabad.
The promoter himself has claimed that one of the city’s richest families recently bought a penthouse worth Rs. 62 crore.
The project appears to have strong demand among the elite of the elite. However, realtors paint a very different picture of the wider property market.
“Commercial properties and regular mid range to entry level top tier apartments are bleeding. There are hardly any enquiries or serious buyers.
The middle class, upper middle class and even the basic rich are no longer buying property with the same enthusiasm as before. Only the ultra-rich are investing in branded gated communities,” said a realtor.
Another realtor observed, “It is now easier to sell apartments priced at Rs. 5 crore and above. But properties in the Rs. 1 crore to Rs. 2 crore range are becoming increasingly difficult to sell.”
Top branded builders may still sell 5-10 properties a month. But smaller, non-gated apartment projects are reportedly struggling to generate even one serious enquiry.
According to a realtor, the aspiration has changed. Earlier, owning a flat in Hyderabad itself was a major achievement.
Now, buyers increasingly associate that achievement with luxury gated communities. However, many cannot afford such properties, creating a major stagnation in the mid-range segment.
The slowdown is not limited to real estate. Consumer spending has also reportedly weakened over the past one to two years.
Several pubs are shutting down after struggling to break even. Some have reportedly been waiting for years just to recover their investment.
The message from market observers is clear, the coming period could be particularly challenging for mid-range realtors.
