Buyers remain wary

HYDERABAD: Aravind Krishna, an employee of a multinational company, had been planning to buy a house in Hyderabad for three years. But he has never got round to doing it and will probably not in the immediate future. Ask him why and pat comes a reply: “Recession, political uncertainty and now high interest rates. I’ll think about it next year,” he says.It’s a situation many Hyderabadis are familiar with. If the Telangana agitation has contributed to their uncertainty, the recent hike in bank interest rates is making that dream costlier to attain.“I recently got a good salary hike and was planning to purchase a flat. I even zeroed in on a couple of properties near Gachibowli and was enquiring about home loans. But RBI has increased the interest rates again and now I have to put my plans on hold, as I will not be able to pay the EMIs,” said L V Suchitra, who works in a private company.While serious buyers are having second thoughts, people who were planning to invest in property have been forced to shelve their plans as the market has slowed down and the returns are not encouraging. However, some people are optimistic and are willing to wait for a few more months. “With the increase in interest rates, realtors might decrease their prices. Even if they do not do so, consumers can bargain. Hence, it is better to wait for a couple of months,” says Y K Manikanta, a restaurant owner at Miyapur.Notwithstanding the increased interest rates, realtors are advising serious buyers not to hold back on their purchases as prices are unlikely to decrease. They say there is a good demand for furnished and ready-to-move-in apartments. “The recession closely followed by the Telangana agitation has kept the prices of land low. Hence, there are minimal chances of a further depreciation in prices. However, buyers should remain cautious while making new investments,“ said a realtor V Rishi Reddy.