Released on: February 7, 2008, 8:47 pm

Press Release Author: phani

Industry: Real Estate

Press Release Summary: There is a popular that forming telangana will reduce the
development in Hyderabad but I would differ from this and say that smaller states
are better for development and already the development in progress in Hyderabad
cannot be stopped real estate majors have started development of huge projects in
Hyderabad, and still they are on an acquisition spree only in Hyderabad, a smaller
state is easier for them to convince the government into giving them more sops!!



Press Release Body: Hyderabad real estate pounced like a tiger in the past 2 years
apartment prices shot up by 300% in certain areas, People who bought early and
developers made merry!, but then as the old saying goes you should make hay while
the sun shines.

300% in 2 years? Does that ring alarm bells. well land prices in Hyderabad actually
shot up by around 1000% in the out skirts to a high around 9 months back.

Owing to heavy pressure on liquidity and lack of direction to the market, the
Hyderabad real estate market softened a little 9 months back but apartment prices
remain steady.

But the situation today is much different compared to what was couple of months back
owing to the lack of political direction towards separation of the state and the
regular meetings and rallies in support of telangana raised an alarm in the minds of
real estate investors. Net effect land prices in the outskirts of Hyderabad started
softening.

Prices of undeveloped land near the srisailam highway which had touched peaks of
1Crore per acre are have dropped to 50 Lakhs an acre.

But will separating the state and forming smaller states lead to drop in the real
estate prices?

Telangana integrally comprises of Hyderabad and Ranga Reddy Districts which are the
economically developed areas, rest tier two cities include Mahboob nagar, Warangal,
Khammam. But revenues for telangana would only be from Hyderabad. Now to analyse,
lets think Hyderabad which recently has been converted in Greater Hyderabad adding
many areas from R.R.District is proposed to be given to telangana, would a business
established in Hyderabad by non Telangana people leave their assets and companies
and shift to their native area? And why should one shift?? Is it a different country
that is being formed?

There is a popular that forming telangana will reduce the development in Hyderabad
but I would differ from this and say that smaller states are better for development
and already the development in progress in Hyderabad cannot be stopped real estate
majors have started development of huge projects in Hyderabad, and still they are on
an acquisition spree only in Hyderabad, a smaller state is easier for them to
convince the government into giving them more sops!!

In all probabilities my view is Telanagana would be announced before this elections
and Hyderabad would be retained as an union territory making it the combined capital
of the split states.

If you are investor keep your money ready as prices would drop further and you can
strike real good deals!!


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The author of the article Mayur Mullaguri is a seasoned real estate investor who has
been investing the Indian real estate market for long and runs a construction
company and real estate portals.



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