Impact of Telangana Bill on Hyderabad Realty

The Hyderabad realty sector heaved a sigh of relief following the passage of the controversy-ridden Telangana Bill in both Houses. It also brought to a close the six-decade long struggle for the statehood of Telangana. However, it required as many as 38 amendments for the Andhra Pradesh Reorganisation Bill for the bifurcation of the state to be passed in Parliament amidst a furore from anti-Telangana MPs. Even though the passage of the Bill was welcomed by realtors and developers, it is still uncertain as to how it will actually impact the realty market of the city.

Speculations

It has been generally felt in realty circles that the passage of the Bill is unlikely to affect the brand value of Hyderabad as a realty market. This is because it was earlier decided that Hyderabad would serve as the joint capital of both states for 10 years in the event of the bifurcation of the state. There were conflicting views from industry insiders with regards to whether Hyderabad would lose some of its realty business to other major cities in the Seemandhra region. However, there was a consensus in opinion that there would be a correction in realty prices of Hyderabad, which had hit rock bottom, due to the Telangana imbroglio.

City to retain realty clout

Despite doubts being raised regarding the impact of Telangana on Hyderabad realty, it is generally expected that the city will continue to retain its clout as a favourable realty destination. This is due to the superior infrastructure facilities as well as the developments in the IT as well as other sectors. Moreover, it is also felt that corrections in realty prices may not happen in the short term. It may take between six to eight months for the realty market of the city to stabilize. Due to property valuations being considerably low during this period, it presents a lucrative opportunity for investors looking to invest in property in the city.

Interim period to be beneficial

The interim period is also expected to be beneficial to home buyers as home prices are likely to remain stable in the next 6-8 months. This could result in increase in sales and thereby demand for residential property in the city. There is also likely to be an increase in demand for office and commercial space due to the investor confidence being hiked as a result of the change in the political scenario. In general, Hyderabad has immense growth potential once it tides over this phase of instability.

Realty opportunities in cities in AP

With the passage of the Telangana Bill, measures are bound to be taken so as to develop a new capital for Andhra Pradesh. This presents tremendous real estate scope in terms of formation of a new capital along with development of infrastructure and other facilities in the region. However, this will depend more on the leadership as well as the policies that will be implemented in Andhra Pradesh. Moreover, other cities in the state like Visakhapatnam, Vijayawada, Guntur, Nellore, Tirupati and Ongole, which are vying for being the new capital, are also likely to witness tremendous development in real estate coupled with increase in property values.