Most in the construction industry say the prolonged indecision on the Telangana issue had cast a shadow on the real estate front, holding back the progress of projects, and property seekers keeping decisions on hold
The relief is palpable in their voice.
With clarity emerging on Telangana, real estate developers here say that the construction sector in Hyderabad will again start to gallop for growth.
Most in the construction industry say that the prolonged indecision on the Telangana issue had cast a shadow on the real estate front, holding back the progress of projects, and property seekers keeping decisions on hold.
“It’s a good day for us, for clarity has finally emerged on Telangana. This will remove ambiguities that prevailed for the last few years,” says P. Dasarath Reddy, president of A.P. Real Estate Developers Association (APREDA).
Investments from the IT, pharma and service sectors, the key drivers of growth in the city, were affected given the dilemma that prevailed and also due to continuing agitations, resulting law and order failure, Mr. Reddy says, adding, “Now, they will feel reassured that their operations can continue for 365 days a year, and with their expansion, real estate, too, will benefit.” Similar sentiments are echoed by G. Yoganand, CMD, Manjeera Group, who says: “Once the IT sector is assured of the law and order situation in the city, there will be growth in their operations, naturally propelling real estate activities.”
The possibility of a short stagnation period preceding the growth is not ruled out. “The announcement on Telangana will trigger the market, but there could also be a small shake-up with speculators and small-time investments,” points out P. Anand Reddy, executive director, PBEL.
There could be a stabilisation and consolidation phase during which property prices might fluctuate but start taking an upward curve soon, he adds. “For the next six to nine months, property prices might go this way and that way but will stabilise and move up,” Mr. Yoganand says.
The idea of retaining Hyderabad as the common capital of the two States for 10 years, too, will help the real estate sector, many say. “This will keep focus here for the next few years and help the consolidation and growth period,” Mr. Anand Reddy observes.
Will the setting up of a new capital have developers from here shifting their investments? “The new capital city will develop on its own and without affecting the fortunes of Hyderabad,” avers Prem Kumar, APREDA immediate past-president.
A new capital city means new growth avenues, and where there is a growth potential, there is business potential, too. “Like any business, real estate developers, too, will be part of the new success stories,” he adds.