Impact of Government Change in Telangana on Hyderabad Real Estate
For years, Hyderabad has been synonymous with a robust real estate history, maintaining stability under the rule of the Bharat Rashtra Samithi (BRS) party, led by Chief Minister K. Chandrashekar Rao. The city’s development, especially in the real estate sector, has been a priority for the previous administration. However, a recent political shift on December 7, with the Indian National Congress winning the Telangana elections and Revanth Reddy assuming the role of Chief Minister, prompts considerations about its impact on Hyderabad’s real estate landscape.
Initial indications suggest that the change in government is unlikely to significantly affect the real estate sector and ongoing projects, including those spearheaded by Oorjita Projects. Speculations lean towards the possibility of land prices remaining stable for the next 3-6 months, with substantial changes expected only after the general elections and AP assembly elections slated for April. As of now, both land and apartment prices are anticipated to hold steady.
A Favorable Time for Investment:
Given the predicted stability in prices for the next few months, experts suggest that it’s an opportune time for those aspiring to purchase homes to make their investment. This advice extends to buying land around the Outer Ring Road, with insights indicating that investing in plots in DTCP layouts near the outer areas could yield favorable returns in the future. Conversely, investments near the Regional Ring Road might not see as significant returns in the next couple of years.
Potential Impact Under Congress Rule:
Drawing parallels with Bengaluru’s real estate, which experienced a downturn under Congress rule, there’s a cautious anticipation of an influence on Hyderabad’s real estate market. However, the magnitude of this influence, whether positive or negative, depends on the government’s vision for the real estate sector.
Hyderabad’s Growth Prospects:
Despite the political shift, Hyderabad is poised for substantial growth, particularly in the IT and real estate sectors. With projections indicating the addition of 35-38 million square feet of business parks and the launch of over 1.3 lakh residential units in the next three years, the city’s real estate landscape seems promising. The growth is attributed to the expanding technology and industrialization sectors, reflecting in high office space leases during the January-September period.
Understanding the Impact of Government Change:
Hyderabad has seen remarkable growth in both the IT space and real estate, like luxury villas in Rajendra Nagar, Hyderabad. Historically, changes in government have had short-term impacts on the real estate sector, while long-term trajectories are more significantly influenced by market fundamentals such as demand, supply, and affordability. While initial concerns may arise among buyers and investors due to the political shift, Hyderabad’s real estate landscape is expected to remain positive in the long run.
Wrapping Up
Political changes inevitably affect various sectors within a state, but in Hyderabad’s case, the diversified economic development, including IT, pharmaceuticals, biotechnology, and manufacturing, serves as a stabilizing factor for the real estate market. Realtors like Oorjita Armonia should vigilantly monitor policy changes, as they can directly or indirectly impact market trends. Nonetheless, with strategic investments, a diversified portfolio, and a well-thought-out plan, stability in long-term investments appears likely even amid political changes.