NRI Investors turn their back on Hyderabad The big question for investors is the future of Hyderabad after the entry of Telangana. NRI investors have been keen to invest in India due to losing rupee value. However, Andhra based NRIs had to choose Bangalore over Hyderabad, in the recent past, due to diminished growth in and around Hyderabad. This will have an impact on Bangalore real estate market in the short run. The main speculation is over political and policy issues after the Telangana crisis is sealed. There are instances where commercial space in Bangalore have seen increasing participation from Hyderabad based developers. If everything goes well, Hyderabad may see developmental opportunities that it had lost to Bangalore. It is important to note that investors from Bangalore were seen as active participants in the Hyderabad realty sector when Shri Chandrababu Naidu and YSR were holding office. If such a leadership focused on development can become reality for Hyderabad again, we could see prices increase and it could also bring back lost hope in Hyderabad realty market. If it is true that Hyderabad missed the realty boom, we could see serious investors entering the market once the Telangana issue is cleared. Since Hyderabad will be the joint capital for both states for a period of ten years, there are numerous unanswered questions which could impact the realty markets of Hyderabad and Bangalore. The NRI community could be seen as a precursor to find the pulse of realty investors. Based on our interview with numerous NRIs from Hyderabad, they are keen to start investing in Hyderabad if ambiguity of future prospects is cleared out. One of the surveyed NRI said Will Hyderabad have a joint CM? We need clarity to help us understand investment potential of Hyderabad!. With state election coinciding with national election, Hyderabad will be the center of attraction for more than a year. Realty businesses in Mumbai and Bangalore are keenly watching the progress and may become potential investors after the elections.
Posted on: Sat, 03 May 2014 09:52:01 +0000