Realty check on Hyderabad
People in the real estate business are a worried lot ? fearing that Hyderabad may go to Telangana, reports Ashok Das.india Updated: Sep 26, 2006 04:34 IST
The withdrawal of the Telangana Rasthra Samithi from the government at the Centre and the party’s threat to launch a violent agitation for a separate state has thrown land prices in Hyderabad into a tailspin.
People in the real estate business are a worried lot — fearing that Hyderabad may go to Telangana.
These people, according to conservative estimates, have invested over Rs 10,000 crore in properties in and around Hyderabad, hoping to capitalise on the ongoing boom fuelled by then influx of hundreds of IT and BT (biotechnology) companies.
Industry sources say that all real estate transactions have been put on hold indefinitely since August 23, when TRS chief K Chandrasekhar Rao quit the Central cabinet. “There are simply no buyers,” said one industry veteran.
He said that one desperate seller had accepted 15 per cent less than the prevailing price for a property as he had needed money urgently.
With no new money coming, the market has dipped by 10 to 15 per cent in some of the much sought after localities like Hitec City or Shamsabad. Businessmen want the Telangana issue to pan out before putting any more money. And they want it sooner as otherwise, the sentiment could get spoiled.
Many builders say land prices will come down if Telangana happens. This assumption is based on the fear that the TRS will drive out the settlers, an euphemism for coastal Andhra people, from Telangana region. The coastal Andhra people are very enterprising and have over the years invested heavily in real estate in Hyderabad and surrounding districts.
However, C Shekar Reddy, vice-president of Real Estate Developers’ Association, begged to differ.
He said that the Hyderabad real estate market had evolved into a mature market and political hiccups would not have much bearing in the long term.