By Accommodation Times News Services
The passage of contentious Telangana bill in the Lok Sabha may not have much impact on investment sentiment in realty sector across Hyderabad, as the city has already been planned to serve as a joint capital for next 10 years, according to property consultant Jones Lang LaSalle.
“The Bill is being viewed with 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 100 years,” said Sandip Patnaik, JLL Managing Director, Hyderabad.
He further said the city has state-of-the-art infrastructure and is the most developed ones in Andhra Pradesh.
“Therefore, it will continue to retain its relevance and pre-eminence going forward. Over the next 6-9 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 capitalise on this,” he said.
This period is also likely to offer best deals for genuine home buyers, as home prices will remain stable for at least the next 6-9 months.
As a result, residential sales are expected to rise in the city. Similarly, office space occupiers are expected to regain their confidence for business continuity in Hyderabad – a factor that was being negatively affected by the previous agitations. Even leasing activity will improve now, and new occupiers will be attracted to the city.
“Overall, Hyderabad city has immense growth potential and will definitely get back into growth trajectory once thingsstabilise,” Patnaik said.
Meanwhile, the formation of the new capital for the Andhra Pradesh (Seemandhra region) is likely to bring in new real estate opportunities in terms of the development of the new capital, which will witness immense infrastructural and real estate growth.
“However, these developments will depend largely on the support of policies and the leadership that will implement them,” he said.
Other key cites of Andhra Pradesh – Vijayawada, Visakhapatnam, Guntur, Nellore, Ongole and Tirupathi – are also likely to witness increases in property prices going forward. As these cities are in the running for the new capital, they may witness increased speculation, Patnaik added.
On Tuesday, Lok Sabha passed the historic bill to carve Telangana out of Andhra Pradesh amid din and strong protests by members from Seemandhra region opposing the division of the state.
The Andhra Pradesh Reorganisation Bill, 2014, which has been hanging fire for long, was adopted by voice vote along with 38 official amendments.