HYDERABAD: After a four year hiatus, residential real
estate prices are set to rise at a relatively faster pace in Hyderabad
with the Government move to carve out a separate State of Telangana.
The research arm of credit rating firm Crisil stated that due to the
Telangana agitation residential capital values in Hyderabad had
stagnated since 2009. Some of the investors had opted for other cities
such as Bangalore and Chennai.
Given the business potential of Hyderabad, the decision to carve out
Telangana, the demand will pick up over the next few months, according
to Sandip Patnaik, Managing Director, Hyderabad, Jones Lang LaSalle
India.
The decision, which was hanging fire for the last 3-4 years, had given
rise to a lot of doubt in the minds of residential end users, investors
as well companies that were considering Hyderabad’s for its unique
business potential.
Investors who had been playing with the notion of pulling out of
Hyderabad because of the unresolved political climate there will now
have the requisite level of assurance that they had made the right
decision, and more investments will now pour in. The fact that Hyderabad
will become the joint capital for the next ten years is especially
encouraging for this city’s real estate market, Patnaik said.
The commercial real estate segment is also likely to pick up. This
decision will prove to be a game-changer for Hyderabad real estate.
According to Crisil, the real estate prices are likely to pick up due
to buoyed investor sentiment of political and economic stability. This
will pave way for resurgence in corporate investments, demand for more
space and help create new jobs.
The rate of growth of capital values is projected to grow by more than 6-7 per cent, which was its earlier estimate.
The gap of prices between Hyderabad and Pune, Bengaluru and Chennai will narrow.
Real estate sector players in Hyderabad, who were hoping a decision
will clear the confusion in the minds of potential investors, are happy
with the move.
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