Hyderabad: Following the recent elections and the rejection of the Telangana Rashtra Samiti by Andhra voters, the real estate business in Hyderabad is experiencing a remarkable upswing once again. As the uncertainty surrounding the demand for a separate state seems to dissipate, both non-residents of India (NRIs) and foreign direct investors are reigniting their interest in the local real estate market.
Many industry observers speculate that had the division into a new Telangana state been imminent, the property prices in the region may have plummeted; however, the current scenario reflects a vastly different outlook, leading many to believe that the prospect of state separation is unlikely.
- Peddi Reddy, a leader from the TDP, shared insights into the situation: "Some of the people in the coastal regions had withdrawn their investments, but now they have come forward and want to invest further, which will definitely give a boost to the real estate business."
The clarity regarding the formation of Telangana has fostered an environment ripe for new ventures within the city. Several builders contend that other factors—such as the recent cut in bank interest rates and a surge in dollars' value—have been pivotal in driving up increased investment activity more than any supposed concerns related to the Telangana situation.
Adding to this sentiment, Y. Kiron from Suchir India Private Limited noted, "Two months after the by-polls, there was a little lull, and it was a wait-and-watch situation. After the by-polls, a lot of NRIs and foreign direct investors are showing interest. The ‘T’ factor impact should not have been there in the first place, but for the past few days, we are getting a lot of calls, and there is a lot of prospect to buy property."