The passing of the Andhra Pradesh restructuring bill 2014, dividing the current state of Andhra Pradesh into two – Telangana and Seemandra has finally ended a long standing debate. With the political stalemate finally coming to an end, the real estate sector in the region can aspire to enter the next phase of developments. However, it will take time for the momentum to set in and may not see an immediate effect at least for another six months as more details on the restructuring are awaited. With both the state as well as the union elections only a few months away, political conditions can still be considered volatile and may remain a short term concern for Corporations.

For Hyderabad, which will be the common capital for both the new states for the next 10 years, the end of the stalemate would bring in stability. With its political future secured, occupiers would start to look at the city favourably for establishing and expansion of business. Critically, investors including NBFC’s are expected to show greater interest in entering and committing to the market further ensuring long term growth. Hyderabad’s main advantage would remain it’s pricing which is very competitive and with its basic infrastructure in order such as International Airport and Road connectivity etc, the city can now expect to see renewed demand from International and Domestic corporations. In addition to the above, Hyderabad has been a preferred destination for work force relocation on account of a more cosmopolitan environment and ease of language giving Companies the advantage of quality human resource. The city will see renewed focus from IT/ ITeS especially from the outsourcing and software development etc segments. The residential sector will also be also see similar positive effects as the office market. The sector had been driven largely by end users for the past couple of years but may now start to see some renewed activities from the investment community.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield