Neopolis Real Estate: 40% of Homes Struggle to Find Buyers Amid High-Stakes Land Auctions

Hyderabad: A series of high-stakes land auctions has thrust Neopolis, the prime real estate zone in Kokapet, Hyderabad, into the national spotlight. However, the ground reality for developers is far from glamorous. Industry estimates reveal that at least 40% of the 10,000-odd homes launched in Neopolis over the past few years are struggling to find buyers. The largest units, measuring over 4,500 square feet (sft) and sometimes reaching up to 7,000 sft, are the hardest hit.

The recent land auctions and project announcements are expected to exacerbate the situation. A senior real estate consultant warns, “The unsold inventory will swell further now with the recent auctions and project announcements. We can expect another 4,000 units getting added to the pool. That could slow down sales further.”

To combat the glut, some developers have taken drastic measures. These include significant price reductions and innovative payment options. One broker, when approached by a customer, offered a home in Neopolis for Rs 6,500 per sft, a steep 50% discount from the official rate of Rs 11,000 to Rs 12,000 per sft. The broker was even willing to settle for Rs 6,300 per sft if the buyer could pay at least 35% to 40% of the property value upfront. The project is slated for completion by 2030.

Currently, the average selling price of a property along Hyderabad's IT corridor, where land rates are significantly lower than in Kokapet, is around Rs 7,500 to Rs 8,000 per sft. “This is a one-time payment offer,” the agent emphasized. “We will work out a payment model for the remaining amount.”

Social media platforms are flooded with promotional fliers from brokers, often without mentioning the project name. “For the first time, some established builders called for a channel partners' meeting specifically to sell their Neopolis ventures,” a real estate consultant who attended the meeting revealed. “The big names will likely weather the storm, but there are a few who have announced projects with 50 to 60 floors. I doubt they can even finish the work,” the consultant added.

Despite the challenges, some developers remain optimistic. R Suresh Kumar, Senior Vice-President (Business Operations) of the Bengaluru-based Prestige Group, which recently acquired a significant land parcel in the Raidurg auction for Rs 141.5 cr per acre, is confident. “Since the size of most homes in our project is restricted below the 3,000 sft mark, we have managed to sell about 70% of our stock already,” he said.

Credai officials also maintain a positive outlook. “Sales have stabilized, not slowed down. This is the right time to invest in a place like Neopolis. I’d only ask buyers to be cautious and consider only credible developers,” N Jaideep Reddy, President of Credai-Hyderabad, advised.

The real estate market in Neopolis is a tale of two extremes: while some developers struggle to offload their inventory, others are finding ways to attract buyers through innovative strategies. The coming years will reveal whether the market can achieve a balance and meet the growing demand for high-end residential properties in Hyderabad.