Telangana Bill: Will it impact real estate market?

Sandip PatnaikJones Lang LaSalle India 

The Telangana Bill passed by Lok Sabha is being viewed by mixed feelings by various stakeholders, but it is still too early to gauge its impacts on the real estate industry. That said, it is likely to end the political uncertainty that Hyderabad has been facing for the past few years. The outcomes are still unclear, but Brand Hyderabad is not likely to be overly affected as it is planned to serve as a joint capital for ten years.

Hyderabad has state-of-the-art infrastructure and is the most developed city in the state; therefore, it will continue to retain its relevance and pre-eminence going forward. Over the next six to nine months, the overall business sentiments in the city are likely to remain stable. Investors may find this period favourable, as property valuations are low and there is still potential to capitalize on this.

Similarly, this period will offer the best deals for genuine home buyers, as home prices will remain stable for at least the next six to nine months. As a result, residential sales are going to rise in the city. Office space occupiers are expected regain their confidence for business continuity in Hyderabad – a factor that was being negatively affected by the previous agitations. Leasing activity will improve now, and new occupiers will be attracted to the city.