Bifurcation lands Real Estate in quagmire

Hyderabad: Although Telangana statehood is for sure, there is no euphoria among the real estate businessmen, who are set to get straight benefit. Contrary to this general opinion, the builders and developers are skeptical about that and say there are not seeing any big prices for land or residential flats either in Hyderabad (or Telangana) or Seemandhra.

The real estate professionals outright see no price variation in Telangana and especially in Hyderabad, but they opine the situation will change once the Central Government makes announcement of Capital city for Seemandhra, the residuary part of Andhra Pradesh. There will be no big dealings worth mentioning in the region happened for the last few months, they say.

Interestingly, the land owners are holding their breath in cities like Vijayawada, Guntur, Ongole, Kakinada and Rajamundry. Of course, there is demand even from Karnool but it appears feeble.

'We are sure once the government decides about the location for the Capital, it will be very difficult to catch the prices,' a real estate professional said.

It is fact that there is no action in Seemandhra. However it should not be interpreted as gloom, but lull before the storm.

In fact, the real estate business will take a new turn in the region as more and more land banks will be utilised by the corporate besides residential and governmental agencies. 'We hope there will be big boost to `building and development' activity in the region,' they say.

While the situation is different in Hyderabad and rest of Telangana, it may be so for a period of time initially. This is so because there will be lot of space available as some of the space occupied by the companies will be vacated as they try to shift to Seemandra capital.

This relocation may increase the supply for commercial and industrial space in Hyderabad. 'Though we have no clear indication that some will migrate to other (Seemandhra) region, eventually it may happen and the realty sector must be prepared for that,' another builder who is no willing to be identified said.

Incidentally, the all India body for real estate and construction, CREDAI is proposing to organise two-day property show in Vijayawada in January, with a view to create awareness and motivate buyers in the region.

The realty players from Vijayawada say that the real estate climate is dull in the region and people are waiting for the final word from the Central government on Capital. Even NRIs who are major buyers in the region are delaying their decisions, they say.

On the open land side, plotting was done on the city (Vijayawada) outskirts like Gannavaram and Gollapudi locations. Interestingly, they say that there are big patches of land being sold or agreements are being signed but transactions are still not coming to the level of registration.