The demand for a separate state of Telangana in Andhra Pradesh has forced the state government to cancel the Global Investors Meet (GIM). Designed on the lines of similar events in Karnataka and Gujarat, the state government was to host the event jointly with the union ministry of commerce and industry, in partnership with the Confederation of Indian Industry.
It was meant to showcase the strengths and potential of Andhra Pradesh to prospective investors from within the country and abroad. The government and the political leaders need to move quickly to clear uncertainty so that we don’t miss more opportunities to attract investment and create employment.
The long term prospects of investing or buying real estate in Hyderabad has been a major point of debate for the past one year or so. Initially global recession had a deep impact in the entire Indian Realty Markets. The excessive capacities planned during the days of the boom led to correction in prices. The market was slow for almost an entire year, to be blunt the market stalled. Even price corrections were not attracting buyers, as they were suffering from job losses or looking at what seemed like an uncertain future. Over time, Indian economy slowly but surely stabilised and emerged stronger and though Realty prices did not go up significantly transaction volumes started picking up.
Hyderabad went through the exact same cycle like all the other booming cities in India, during this recession hit period and just as the volumes started picking up the city real estate was faced with a new dampener.
The prospect of a separate state of Telangana seems to have made buyers postpone their decisions. Customers scared that the prices may fall and postponing purchases have made most developers uneasy about future prospects of Real Estate in Hyderabad.