HYDERABAD: Recent high-stakes land auctions have spotlighted Neopolis, Kokapet’s prime real estate area, but the situation on the ground is less promising for developers. Industry estimates indicate that about 40% of the over 10,000 homes launched here in recent years are struggling to sell, particularly larger units exceeding 4,500 square feet, with some projects reaching up to 7,000 square feet.
“With the latest auctions and project announcements, unsold inventory is expected to increase further. We could see an additional 4,000 units added to the market, potentially slowing sales,” cautioned a senior real estate consultant, emphasizing the over-saturation in Hyderabad’s property market.
To combat this, some developers have resorted to significant price reductions; others are employing aggressive marketing strategies or introducing innovative payment plans to attract buyers. A broker, posing as a customer, mentioned being offered a home in Neopolis for Rs 6,500 per square foot—nearly 50% less than the official rate of Rs 11,000 to Rs 12,000 per square foot. For context, the average selling price along Hyderabad’s IT corridor, where land rates are notably lower than in Kokapet, ranges from Rs 7,500 to Rs 8,000 per square foot.
“This is a one-time payment offer,” the agent stated, willing even to negotiate to Rs 6,300 per square foot. “If you can pay 35% to 40% of the property’s value upfront, we can arrange a payment plan for the remainder,” he added, noting that the project is scheduled for completion by 2030.
Many similar promotional offers circulated by brokers are making the rounds on social media, notably without identifying the projects. “For the first time, some established builders even convened a meeting with channel partners specifically to sell their Neopolis developments,” remarked a real estate consultant who attended the gathering.
“While the prominent developers are likely to succeed, some have taken on more than they can handle by announcing projects with heights of 50 to 60 floors. I doubt they will complete those,” the realtor commented.
Slow but Steady
Developers with projects in Neopolis who spoke to TOI remained optimistic. “I can’t speak for others, but most homes in our project are under 3,000 square feet, and we have already sold about 70% of our inventory,” said R. Suresh Kumar, Senior Vice-President (Business Operations) at Bengaluru-based Prestige Group, which recently acquired a significant land parcel in the Raidurg auction valued at Rs 141.5 crore per acre.
Credai officials also express confidence in the location. “Sales have stabilized, not slowed down. This is an ideal time to invest in Neopolis, but I advise buyers to stick with credible developers,” said N. Jaideep Reddy, President of Credai-Hyderabad.
