Are realty cos creating artificial boom about open plots in Hyderabad?

Hyderabad: With the real estate sector in Hyderabad witnessing a prolonged boom despite sluggish dynamics in the segment across India, some real estate companies are trying to cash in on the bullish trend by creating hype about investments in open plots in some areas, saying such investments will bring in rich dividends in near future. Some companies are also making concerted efforts to fuel artificial boom in those areas where they have launched or about to launch their real estate projects. This is taking place in such areas around Hyderabad, where there is not much demand for open plots. By creating such an artificial boom, these real estate companies are increasing prices of open plots indiscriminately and selling them at far higher rates than those prevailing in such areas.

For instance, the prevailing prices in areas around Kistapur and Girmapur near Medchal are far less than Rs 20,000 per yard as they are located outside Outer Ring Road (ORR). But some real estate companies are trying sell open plots in such areas at an exorbitant price of Rs 35,000 per square yard or more, nearly double of the prevailing prices in the locality. Interestingly, land prices are far less outside ORR when compared to those prevailing inside it.

"People who are looking for open plots should be wary of such tactics. Otherwise, their hard-earned money will get stuck. Open plots are a good option for investment purpose. There is no second opinion about that. But location should be good. Otherwise, there will not be any appreciation in near term," a real estate expert warned.

Another expert pointed out that it would be a long time before areas outside ORR near Medchal would develop. "As these areas are far off from Hyderabad, they take longer time for development. People should keep this in mind before purchasing open plots in such areas," the expert said.