T-effect: Property registrations plummet

Thanks to the political uncertainty, property registrations have taken a hit to an all-time low with the number of registrations in various sub-registrar offices falling by half

The sub-registrars office in Hyderabad had to achieve a target of 87.3 % in the past four months while it could only reach 55 %

The good news first. Land prices in and around Hyderabad have fallen sharply, perhaps the lowest in recent times. Now the bad news. There are no takers for land and property. While other cities came out of the 2008-09 economic slowdown, recovery in Hyderabad had been consistently marred by political uncertainties. This year post-July, ever since the CWC approved bifurcation of the state, sub-registrar offices in the city witnessed a drastic fall in number of registrations.

The income from registration of land and properties in many offices has reduced by more than half. According to official figures, in June the sub-registrars office at Ibrahimpatnam achieved its target with 109.26 per cent, but subsequently by October end, the figure came down to 50.66 per cent.

This four-month gap from July to October has been drastic. In this period only 12,060 and 52,424 registrations took place in Hyderabad and Ranga Reddy districts. According to realtors even these registrations have been for less valued lands.

“People are uncertain over land and building rates which would prevail if Telangana comes into existence. This situation is bound to continue until there is more clarity on Telangana state,” said Raghu, a builder.

Mallikarjuna Rao, an investor, says, “I have two plots measuring 270 sq yards each at Medchal, just behind the Railway station. I have been planning to sell but there are no takers.” Another realtor, Sarvesh, says, “Many investors are playing the waiting game, while some have just moved out and invested in other cities.” Even though the sellers at city outskirts are ready to sell their lands at throwaway prices, there are no buyers.

C Sudhakar, managing director of Chakilam Constructions, a residential property developer, said that prices had already dropped when Telangana was announced first in December 2009, but have appreciated by 25 to 30 per cent in the past few months due to inflation which had increased the cost of construction.

Even Andhra Pradesh Real Estate Developers’ Association had expected a positive impact on real estate prices in Hyderabad but nothing of that sort has happened.

The sub-registrars office in Hyderabad had to achieve a target of 87.3 per cent in the past four months while it could only reach 55 per cent.