Telangana effect: Brace for a rise in Hyderabad property prices

Now that the creation of a separate Telangana state is announced, real estate developers in Hyderabad can heave a sigh of relief.

Despite competitive capital values compared with other metros, the Hyderabad real estate market was down in the dumps for the last couple of years with builders holding back projects and property buyers holding out on purchase decisions due to political instability over the bifurcation issue.

While other cities entered a resurgence phase after the 2008 slump, recovery in Hyderabad was marred by political uncertainty and characterised by fewer launches and declining capital values.

Since the residential sector is highly sentiment driven, the Hyderabad market failed to attract buyers.

According to property research firm Knight Frank Hyderabad will take more than two years to absorb the  current unsold inventory of  33,000 housing units.

Brand Hyderabad to dazzle with Telangana rise

With the sun finally setting on the longdrawn T-uncertainty, Brand Hyderabad is set to shine once more and brighter at that.

Industry experts feel that the decision to divide Andhra Pradesh will put Hyderabad firmly back in the saddle as a global IT/ITeS hub, as it was primarily the political uncertainty that had helped Bangalore and Chennai cash in on Hyderabad's T-woes in the past four years rather than any actual limitations of Hyderabad.