Hyderabad Realty: Will it gain its lost glory?
July 15, 2014 |
Summaiya Aslam
The bifurcation of Andhra Pradesh might have ended the political skepticism, but Hyderabad as a city is yet to see any major change. Poised as the political capital of the both Seemandhra and Telangana, the city aims at emerging as a tech hub again. Post the division of the state the real estate industry is pinning high hopes for the market to rise. But the question arises will the real estate market see growth in the coming days?
Photo Credit: Hari Om Prakash/wikimedia commons
Political instability and prolonged agitations have resulted in slowing the real estate market and has also damaged the image of the city. From being a dream destination for information technology, hospitality, construction and other such sectors Hyderabad has lost its sheen. Over the past two years the city has seen very few construction project launches, while the land prices in the region have only seen a meagre price appreciation of about 2.4% in the last one year.
The strategies and philosophies of governments of both Telangana and Seemandhra will be the decisive factor when it comes to increasing investment in real estate in the region. The government is also aiming to increase entrepreneurship in the city, to enhance business and job opportunities, and bring back the glory of the city.
But, the recent decisions made by the Telangana government may hurt the investors' interests, and send them mixed signals. Reversal on the promises made by the united Andhra Government, will largely hurt the business interest of investors. The decision to realign the Hyderabad Metro rail, and to retrieve the land the Lanco group bought through a global bidding organised by the government, might greatly affect the market situation. A revised metro rail plan will further delay the project, thus delaying development in the region, and will also increase the cost of the metro project.
Entrepreneurs of the Andhra region, who are interested in real estate, construction, infrastructure and irrigation sectors are worried about investing in the Telangana region. Companies like GMR, GVK, Lanco and IVRCL with roots in Andhra Pradesh are also concerned about the new Government in the Telangana region. They feel they might be targeted because of their previous affiliation with political parties that were against bifurcation of the state. The power influence may further create a difficult situation for investors in all segments.
While, N Chandrababu Naidu, the Andhra Pradesh Chief Minister, and the man behind the creation of Hyderabad as an IT Hub, is now planning to develop Anantpur as the new IT City. He has also spoken to major IT giants to set up their centres in Anantpur, which again will shift the development to this area. The city has a well-connected road network, connecting it to major cities like Mumbai and Bangalore, and is set to emerge as the next Technology destination.
With Anantpur being announced as the new IT capital of Seemandhra, the Telangana government needs to take strong steps to keep the current investors interested in Hyderabad and acquire new investors. Presently the real estate market in Hyderabad is at a standstill, and the city is not likely to see any major boost in coming times. Development plans proposed by the Government are going to play a major role in bringing up the market, and the city to its previous glory of an IT hub.
Do you think the real estate market in Hyderabad will boost up post the division? Share your thoughts with us.
Photo Credit: Hari Om Prakash/wikimedia commons
Political instability and prolonged agitations have resulted in slowing the real estate market and has also damaged the image of the city. From being a dream destination for information technology, hospitality, construction and other such sectors Hyderabad has lost its sheen. Over the past two years the city has seen very few construction project launches, while the land prices in the region have only seen a meagre price appreciation of about 2.4% in the last one year.
The strategies and philosophies of governments of both Telangana and Seemandhra will be the decisive factor when it comes to increasing investment in real estate in the region. The government is also aiming to increase entrepreneurship in the city, to enhance business and job opportunities, and bring back the glory of the city.
But, the recent decisions made by the Telangana government may hurt the investors' interests, and send them mixed signals. Reversal on the promises made by the united Andhra Government, will largely hurt the business interest of investors. The decision to realign the Hyderabad Metro rail, and to retrieve the land the Lanco group bought through a global bidding organised by the government, might greatly affect the market situation. A revised metro rail plan will further delay the project, thus delaying development in the region, and will also increase the cost of the metro project.
Entrepreneurs of the Andhra region, who are interested in real estate, construction, infrastructure and irrigation sectors are worried about investing in the Telangana region. Companies like GMR, GVK, Lanco and IVRCL with roots in Andhra Pradesh are also concerned about the new Government in the Telangana region. They feel they might be targeted because of their previous affiliation with political parties that were against bifurcation of the state. The power influence may further create a difficult situation for investors in all segments.
While, N Chandrababu Naidu, the Andhra Pradesh Chief Minister, and the man behind the creation of Hyderabad as an IT Hub, is now planning to develop Anantpur as the new IT City. He has also spoken to major IT giants to set up their centres in Anantpur, which again will shift the development to this area. The city has a well-connected road network, connecting it to major cities like Mumbai and Bangalore, and is set to emerge as the next Technology destination.
With Anantpur being announced as the new IT capital of Seemandhra, the Telangana government needs to take strong steps to keep the current investors interested in Hyderabad and acquire new investors. Presently the real estate market in Hyderabad is at a standstill, and the city is not likely to see any major boost in coming times. Development plans proposed by the Government are going to play a major role in bringing up the market, and the city to its previous glory of an IT hub.
Do you think the real estate market in Hyderabad will boost up post the division? Share your thoughts with us.
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Buyers Hyderabad propguide
Buyers Hyderabad propguide