The decision to create the state of Telangana augurs well for the city of Hyderabad. The issue had been hanging fire for the last 3-4 years taking a huge toll on the development of the city. The one sector which is all set to get a tremendous boost in view of this decision is real estate market. The indecision over the creation of the new state had given rise to a lot of doubt in the minds of residential end users, investors as well companies that were considering Hyderabad’s for its unique business potential. Investors who had been playing with the notion of pulling out of Hyderabad because of the unresolved political climate there will now have the requisite level of assurance that they had made the right decision, and more investments will now pour in. The fact that Hyderabad will become the joint capital for the next ten years is especially encouraging for this city’s real estate market.
In term of the effect of this decision on real estate demand and pricing dynamics, it is unlikely that end-user demand will increase immediately. However, within the next 2-3 months, demand will start picking up considerably and this will lead to better appreciation in many areas. The locations which will see the fastest uptick include those on and around Outer Ring Road, the CBD area of Banjara Hills and Jubilee Hills, and areas such as Gachibowly, HiTec City, Kukatapally, Miyapur and Chandan Nagar.
When it comes to commercial real estate, we can definitely expect increased action as corporate clients who were sitting on the fence will now feel encouraged to enter or further expand in this lucrative market. All said and done, this decision has been long awaited and will prove to be a game-changer for Hyderabad. — Arun Chitnis, by e-mail
Hyderabad to witness building boom
