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Telangana issue affects real estate sector

No Comments Sub Category:Cities,Hyderabad,Real estate trends,Realty News Posted On: Jan 24, 2013

Hyderabad- From past few weeks the Telangana issue is coming into light which is indirectly affecting the real estate sector of Hyderabad.

The impact is as both payment and inquiries count has decreased. It is expected it will remain the same by January 28, 2013. The deadline set by the Home Minister last month to decide the fate of Telangana issue. But now this date may get delayed.

After a long time, the city came into recovery state but now it seems that the city will again face the nightmares of 2009-10. The investors are now afraid to invest in the real estate sector of Hyderabad. They have adopted a wait and watch stand. The real estate developers are stuck in this situation as many transactions have halted.

Relators feel that if Telangana issue is not resolved at the earliest then the sector will again take a round of beating. Earlier this issue came along with the economic slowdown. But now this issue will drag the real estate market of Hyderabad in such a state that there will be no hope to get retain its place in the competitive market for next five years.

Investors do not have confidence in politicians and bureaucrats. The power and irrigation projects in state are in worst situation which also indirectly affects the real estate sector. Irrigation projects worth Rs 70,000 and Rs 1 lakh crore are incomplete in the state.

According to a realty consulting firm, Jones Lang Lasalle, residential sector is relatively stable than the commercial sector as residential developers have tenants. They also pointed out the steady growth of residential sector with new launches from past few months.

Secretary of IT and ITeS Industry Association of Andhra Pradesh feels that this issue will be resolved soon when the final decision is out. The IT sector plays an important role in city’s real estate growth.

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Telangana issue affects real estate sector

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