Real estate prices to rise after Telangana creation
Hyderabad: Now that Telangana is born, moment celebrated and sweets distributed, what next? The most important thing that comes to ones mind is the real estate status. Real estate developers in Hyderabad feel the Congress and United Progressive Alliance's decision on the formation of Telangana will work well for their business in the long run.
Due to the Telangana agitation, it said, residential capital values had stagnated since 2009 and driven investors to other cities such as Bangalore and Chennai. It now expects the growth in prices to be faster and the gap in residential capital values vis-a-vis cities like Pune, Bengaluru and Chennai to narrow. Commercial lease rentals, however, will continue to see only a marginal annual increase due to the huge oversupply situation, it said.
Yet, it expects demand to start picking up considerably in two or three months, leading to appreciation in many areas. "The business will pick up, as there is an end to political uncertainty over the issue," Rajeshwara Rao, chief executive of the Hyderabad chapter of the Confederation of Real Estate Developers Association of India, told Business Standard.
It (the decision on statehood) is good for everybody. There will immediately be an inflow of investments into the city," said Narayan Reddy, promoter of Lumbini Constructions. In this regard it named areas in and around the Outer Ring Road, the central business district area of Banjara Hills and Jubilee Hills, and places such as Gachibowli, Hitec City, Kukatapally, Miyapur and Chanda Nagar.