Property prices in Hyderabad set to fall...

Hyderabad may now be the country's second largest city. But the city's big growth could actually mean property prices falling, reports CNBC-TV18.

The Municipal Corporation of Hyderabad is now 450 sq km larger, second only to the National Capital Region (NCR). The additional areas will have all infrastructure and basic amenities that the center of the city enjoys. The project will require a total investment of Rs 28,000 crore from the government. Officials said the new supply would cause prices of residential property in the city to fall

Jayesh Canjan, Vice-Chairman of Huda said, “Property developers will be able to open up many more areas for residential purposes and the availability of housing in terms of supply will go up and because of that the prices will come down."

Hyderabad has seen an increase of % over the last two years because of the large gap between demand and supply of residential property. Real estate consultants expect the fresh land supply coupled with rising interest rates to lead to a 15% correction in property prices

Besides this, the Hyderabad urban development jurisdiction has been increased from 2,000 to 6,000 sq km and the authority is doubling its expenditure to Rs 2,000 crore a year to develop the area.

“We will announce a number of projects like new townships, as well as specialised area developments like medical tourism areas, eco tourism, health city, pharma city and so on," Canjan said.

Over the last year, the local Government has been accused of driving up real estate prices in the city unnaturally through highly priced land auctions with a huge amount of land set to hit the market all that could change, leaving consumers happy.