Though the future of Telanganna Bill is uncertain, the brand Hyderabad is rarely going to face any challenge as it is planned to serve as a joint capital for 10 years
The Telangana Bill passed by Lok Sabha is having mixed feelings by various stakeholders, but it is still too early to gauge its impacts on the real estate industry. It is likely to end 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.
Hyderabad has state-of-the-art infrastructure and is the most developed city in the state; therefore, it will continue to retain its relevance and pre-eminence going forward. Over the next 6-9 months, the overall business sentiments in the city are likely to remain stable. Investors may find this period favourable as property valuations are low, and there is still potential to capitalise on this.Similarly, this period will offer the best deals for genuine home buyers as home prices will remain stable for at least the next 6-9 months. As a result, residential sales are going to rise in the city. Office space occupiers are expected regain their confidence for business continuity in Hyderabad — a factor that was being negatively affected by the previous agitations. Leasing activity will improve now, and new occupiers will be attracted to the city.
Overall, Hyderabad has immense growth potential and will definitely get back into growth trajectory once things stabilise.
Meanwhile, the formation of the new capital for the Andhra Pradesh (Seemandhra region) is waiting in the wings. This is likely to bring in new real estate opportunities in terms of the development of the new capital, which will witness immense infrastructural and real estate growth. However, these developments will depend largely on the support of policies and the leadership that will implement them.
Other key cites of Andhra Pradesh — Vijayawada, Visakhapatnam, Guntur, Nellore, Ongole and Tirupathi — are also likely to witness increases in property prices going forward. As these cities are in the running for the new capital, they may witness increased speculation.
Authored by—Sandip Patnaik, Managing Director – Hyderabad, Jones Lang LaSalle India