With the formation of a separate state of Telangana, real estate developers in Hyderabad are in renewed hope. 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. 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 to 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 real estate has immense growth potential and is already back on its growth trajectory.
With the Telanganagovernment announcing plans to develop Hyderabadas a global city, the real estate developers expect 40 to 50 percent increase in the prices over next six to eight months. According to the Confederation of Real Estate Developers of India (CREDAI), the prices in Hyderabad are expected to increase still. The plans of Telangana Rashtra Samithi (TRS) government to improve Brand Hyderabad prepare a new master plan; develop Information Technology and Investment Region (ITIR), satellite townships and special clusters for various sectors. This will further bring a boom to the real estate sector.
Hyderabad’s property prices have declined since the first half of 2008 because of the political uncertainty surrounding the formation of the state of Telangana, while many of India’s others major cities have experienced growth in recent years
In 2009 & 2010 prices came down due to the impact of agitation. From 2011 onwards prices started increasing and by early 2014, prices have reached the peak attained in 2007. In effect, even with Telangana formation in pipeline, prices have steadily increased from 2011.
Investors who had considered pulling out of Hyderabad because of the unresolved political climate will now be reassured that Hyderabad is poised for growth.
There are plenteous residential or commercial properties which are ready to move in the city. After Telangana formation, commercial and residential lands have gone up. Investing in properties that are easily rented is a good option.
The rent prices in Hyderabad have also gone up. 2-3 BHK houses for rent in Hyderabad ranges from 10 to 25 thousand per month whereas the penthouses or villas cost in lakhs per month.
The other side:
Although the formation of the state has bought hope to many it has left many others in utter confusion. Pre partition, nearly 80 lakh people called this city their home and about 30 lakh hail from the coastal and southern districts which are now collectively called Seemandhra, and form the residuary state of Andhra Pradesh. In those times, there were huge investments in real estate from those living in these areas. Now however, they are confused as to where to invest.
Potential buyers from the coastal and southern region are now shying away from investing in the city and are planning instead on putting their money on Seemandhra’s yet-to-be-announced new capital. A chunk of these investor’s include those from the cash rich Krishna-Godavari delta.