HYDERABAD: The passage of Telangana Bill is being seen as a booster for the realty sector players in Andhra Pradesh and Hyderabad, both affected due to prolonged agitation for statehood.
Realtors and consultancy firms believe it would provide momentum in Hyderabad and Seemandhra. The latter is expected to see development of new offices and residential projects will come up with the development of new cities.
Going into next phase
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, says “With the political stalemate finally coming to an end, the real estate sector in the region can aspire to enter the next phase of development. However, it will take time for the momentum to set in and may not see an immediate effect at least for another six months as more details on the restructuring are awaited.”
“With both the State and the union elections only a few months away, political conditions can still be considered volatile and may remain a short term concern. For Hyderabad, which will be the common Capital for both the new States for the next 10 years, the end of the stalemate would bring in stability,” he said.
Ganesh Vasudevan, CEO, Indiaproperty.com, says, “In the past 12 quarters, the real estate market in Hyderabad has constantly seen downward growth due to the uncertainty over Telangana. Since Hyderabad will serve as the Capital for both the States, it is expected to reap the benefits of this double governance.”
P Dasarath Reddy, President of APREDA, says, “The indecisiveness and ambiguity which was in the air for the past several years has now been put behind. The real growth phase will come once a new Government gets formed. The property prices that have remained stagnant for nearly two-three years will move up once the situation improves.”
Sandip Patnaik, Managing Director, Hyderabad, Jones Lang LaSalle India, says, “It is still too early to gauge its impact on the real estate industry. While it ends the political uncertainty that Hyderabad has been facing for the past few years, the outcomes are still unclear. But Brand Hyderabad is not likely to be overly affected as it is planned to serve as a joint capital for 10 years.”
“Over the next six to nine months, the overall business sentiment in Hyderabad is likely to remain stable. Investors may find this period favourable, as property valuations are low and there is still potential to capitalise on this,” he added. This period is expected to offer the best deals for genuine home buyers, as home prices will remain stable for at least next 6-9 months.