Results come as breather for builders

‘The psychological barrier to investors is broken’

Results are seen as good sign for reluctant buyers

Builders hope the results will improve market conditions

HYDERABAD: Political parties may have differences on the outcome of the byelections to 17 Assembly and four Lok Sabha seats, but the fractured verdict given by the electorate has come as a breather for the construction industry and infrastructure developers.

Builders concede that the demand for separate Telangana had an adverse impact on the construction industry in addition to various factors, including the rise in the material costs and inflation that slowed down building activity and infrastructure development.

Though there was no unanimity about the extent of the impact that the Telangana issue had on the industry, they claimed that the results broke the “psychological barrier” that had been preventing prospective investors in deciding about their ventures.

‘Wait ends’

“Investors were waiting to see the outcome of the bypoll as it would have an impact on the coming general elections.

But the waiting period is over,” Builders’ Federation representative C. Sekhar Reddy told The Hindu.

According to Mr. Reddy, uncertainty over the impact of separate Telangana on prices of lands in areas 50 km away from the city had kept the investors away.

But the results are a good sign for such reluctant buyers, he said.

Positive impact

K. Ravinder Reddy of Janapriya Estates opined that the outcome will have a positive impact on the construction industry.

Despite the hype surrounding it, the separate Telangana issue did not affect the construction and real estate industry as anticipated. “And, the results have reduced whatever marginal impact it was supposed to have,” he said.

Market conditions

Another builder Narender Reddy said the separate Telangana slogan had its adverse impact on the industry at a time when it had taken up a major course correction to overcome the slowdown due to adverse market and economic conditions.

The results, he hoped, would help improve the market conditions.

The builders, however, are assertive that even if the separate State slogan continues, the impact would not be a lasting one.

“Even if there is a temporary impact, people will continue to invest when it comes to a longer term,” Mr. Ravinder Reddy added.

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