Telangana Bill: The Real Estate Impact

Sandip PatnaikSandip Patnaik, Managing Director – Hyderabad, Jones Lang LaSalle India

The Telangana Bill passed by Lok Sabha is being viewed by mixed feelings by various stakeholders, but it is still too early to gauge its impacts on the real estate industry. That said, 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 ten 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 six to nine 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 capitalize 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 six to nine 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 City has immense growth potential and will definitely get back into growth trajectory once things stabilize.

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.

 

Digiprove sealCopyright secured by Digiprove © 2014 Jones Lang LaSalle

Tags: , , , , , , , , , , , ,

One Comment

Leave a comment
  1. venkat rao mahenderkar 26. Feb, 2014 at 4:32 pm #

    dear sir, gone through your brief analysis on impact of telangana bill. yourself being in domain of decision motivators, I will be happy to get decentralize the already congested cities in our state and flow may be followed to surrounding areas with overall growth in two states i.e., TELANGANA & ANDHRA. Think over,Thanks, Venkat Rao Mahenderkar.

Leave a Reply