Now the final steps are being taken to form the new Indian state of Telangana, there are new opportunities in Hyderabad’s real estate sector, says Trivita Roy, from Jones Lang LaSalle

A leading Indian real estate professional says now the decision about a new state in India has been finalised, there is money to be made from Hyderabad property.

The city’s property market, which has seen investor interest fall during the political uncertainty over the formation of the new Telangana state and the role of Hyderabad, is now undervalued and offers new opportunities, says Trivita Roy, Senior Manager of Research and Real Estate Intelligence Service, for Jones Lang LaSalle in India.

“Real estate is greatly undervalued today, and with many people realising this, the window of opportunity may not remain open for long! Hyderabad’s realty market will pay rich dividends to those who help it out during this so-called crisis and I wish I had loads of money to make a fortune for myself!”

India’s upper house of parliament has approved a bill to create Telangana which will become law when signed by the president. Telangana will have a population of 35 million and will include the city of Hyderabad and 10 districts currently in the state of Andhra Pradesh.

“As India constitutes its 29th state-Telangana by carving it out from the southern state of Andhra Pradesh, the city of Hyderabad, the capital and the state’s largest city stands at a crossroads,” says Ms Roy, who works in Hyderabad.

“Hyderabad will serve as the joint capital of Telangana and Seema Andhra (the rest of the current Andhra Pradesh State) for the next ten years. Those with either tangible or intangible interests in Hyderabad and in Andhra Pradesh are now speculating on the future of the two and how they will be affected.”

Hyderabad has a population of around  seven million people and four times larger than its nearest competitors, the cities of Vijaywada and Vizag and enjoys a strong multi-faceted economy; however, the political uncertainty of the last two years has delayed its development, she says.

Property investors have been extremely active there, until the last couple of years, when the plan for the formation of the new state provoked political uncertainty, but now that is at an end.

“The real estate environment in Hyderabad has seemed almost inert with hardly any new companies willing to consider it for offices, new construction activity has been limited and investor sentiment has been low. Residential real estate has been in flux with large projects under construction finding few buyers and unsold stockpiling up, despite the city remaining the most inexpensive of the top seven Indian cities.”

Hyderabad is unlikely to lose any of its strengths. It will be the capital of two states for the next ten years and will then be the capital of Telangana.

“People and companies are bound to have mixed feelings about the future but at least they are happy that the uncertainty is over. They now have a clear picture and can plan ahead based on their own judgment of the future prospects of Hyderabad. Ten years is a reasonable period for Seema Andhra to build its new capital and reduce its direct dependence on Hyderabad, and for Telangana to develop enough to compensate for any loss of activity.

“Meanwhile, Hyderabad can offer a different kind of opportunity. Its real estate market is struggling and good options are available for both home buyers and investors alike.”

By Adrian Bishop, Editor, OPP Connect

Source And Courtsey By :-http://www.opp-connect.com/07/03/2014/hyderabad-property-market-offers-rich-dividends/