The Hindu Business Line : Fears of realty crash in Hyderabad allayed

`Real estate prices in Hyderabad are low and reasonable when compared to other cities such as Bangalore and Chennai, and hence there is no scope for a crash.'

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Hyderabad Jan. 30 Contrary to a strong view that real estate prices might crash in the twin cities, the AP Real Estate Developers' Association (APREDA) has said that the industry might slow down for a while. "But it will not crash as it happened elsewhere," Mr P.S. Reddy, President, and Mr Murali Mohan, former president, said.

Addressing a press conference here on Tuesday, they said the real estate prices were low and reasonable when compared to other cities such as Bangalore and Chennai, and hence there was no scope for a crash.

Moreover, the upcoming international airport, Outer Ring Road and new investments that are coming into the State capital would further fuel the growth of real estate. Asked whether the controversial assigned lands issue could impact the industry adversely, Mr Murali Mohan, the actor-turned- developer, said the developers had always kept themselves away from assigned lands. "We know quite well that it is not legal to buy assigned lands. By and large we don't develop such lands," he said.

The issue of assigned lands (the land that has been allocated to the disadvantaged and other beneficiaries from time to time) had become a subject of hot discussion in the State, following a Government decision to take back all such lands that went into the hands of unauthorised persons.

Govt blamed

Replying to a question on skyrocketing prices of residential space, Mr Murali Mohan said the Government should be held responsible for this. "Government agencies such as HUDA (Hyderabad Urban Development Authority) hold auctions of properties. These auctions result in abnormal raise in land prices around the area," he said. Besides, costs of steel, cement and labour too have gone up phenomenally, making residential spaces dearer.

He, however, asserted that the present sft (square feet) charges were still lower than that of Chennai and Bangalore.

APREDA gesture

Meanwhile, members of APREDA pooled Rs 40 lakh to construct 50 houses for the victims of tsunami in the Prakasam district. On a two-acre plot donated by Mr Samanthula Adi Reddy and Ms Parvatamma in Binginapally village, the association built 50 houses.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, formally inaugurated the `Tsunami Colony' from his residence here.

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