The Hyderabad real estate market appears quite peculiar at the moment. Many apartment complexes are coming up and high rise towers are rising everywhere.
Huge advertisements, bold price announcements per square foot and constant promotions make it seem as if the sector is booming with massive demand. But as the saying goes, all that glitters is not gold.
A real estate expert said, “A lot of inventory is still lying unsold, especially in high rise gated communities.”
Naturally, this raises the question of why prices are not coming down when supply seems to be higher than demand. Explaining this, he said many buyers do not understand how pricing works in the real estate market.
According to him, developers often fix a high price and then claim they are offering discounts of around Rs 100 per square foot, which attracts buyers and they feel contended.
“But that is not the real picture. It works more like a footpath vendor business where strong bargaining is required,” he explained.
He added that when buyers show seriousness with a signed cheque and negotiate firmly, even a reduction of around Rs 2000 per square foot becomes possible.
The realtor also noted that some large developers with strong financial backing are not willing to reduce prices easily because they can afford to wait longer for buyers.
However, many other well known gated community projects are selling at lower prices if the negotiation is tough and strategic.
Ramakrishna, a software engineer, shared an example. “My friend bargained aggressively and bought a flat in the Tellapur region for Rs 4500 per square foot, even though the official price was around Rs 7000.”
That is a steep reduction of Rs 2500 per square foot. This indicates that many projects do not want to lose a serious buyer since there are numerous unsold flats and strong competition in the market.
He also said he knows several of his colleagues and friends who purchased flats at large discounts in areas such as Rajendranagar, Kokapet, Gachibowli, Kondapur and even in the new Neopolis region.
According to him, these deals largely depend on strong bargaining skills and the buyer’s readiness to pay a substantial advance on the spot, sometimes even the full amount.