Realtors begin business in Telangana as govt plans more districts

Telangana government has decided to carve out new districts as the existing 10 districts in the state which have a population of 35 lakh each. The ideal population of each district should be about 19 lakh.

Chief Minister K Chandrasekhar Rao, who, during the election campaign, promised that more districts would be created, has appointed a committee to make recommendations in this regard.

One of the advantages of having smaller districts is better and more efficient administration which ensures that all the government programmes and schemes reach out to every citizen.

However, even before the government is to finalise the new districts, the ministers and MLAs of the ruling Telangana Rashtra Samithi (TRS) are busy announcing possible new district headquarters. This is incentive enough for the realtors across the state and reports suggest that the land prices in Medak, Siddipet, Sangareddy, Vikarabad, Jagital, Jangoan, Mancherial, Nagarkurnool and many others have shot up.

The land which cost a few lakhs per acre has now crossed Rs 1 crore mark with the realtors taking up layout development by purchasing agriculture and waste lands. There are no major restrictions in village panchayats over conversion of land from agriculture to residential unlike under the Greater Hyderabad Municipal Corporation and Hyderabad Municipal Development Authority limits, which is proving to be a boon to real estate business.

Not surprisingly, the maximum realty boom is in Medak, the home district of the CM which is represented by his nephew and prominent TRS leader T. Harish Rao. On a few occasions, the CM had disclosed his plan to trifurcate the district as Medak, Sanga Reddy and Siddipet and there was also a hint that Medak district will have Medak town as its headquarters A 500 sq. yard plot in Autonagar in Medak was recently sold for Rs 1.22 crores, a price that many would find hard to believe. Accorded to reports, a 300 sq. yard plot in Ajampura area in Medak town was recently sold for a little over Rs 1 crore, with each sq. yard selling for Rs 35,000, which is almost on par with land rates in Hyderabad.

Land prices are shooting up in other towns which are also likely to become district headquarters with realtors making a beeline to panchayat offices to secure permissions for layouts to develop plots to sell them at an opportune time and price.

Future of Real Estate in Hyderabad and Telangana Region after the formation of new Telangana State

With the passing of Andhra Pradesh Reorganization bill on 18th Feb 2014, Telangana is all set to become the 29th state in the country.  It was a forgone conclusion that the new state will be formed, after the Congress Working Committee resolved in July 2013, to proceed with the division of the state.

To get political mileage and votes, it was essential for the Congress to push through the bill before the upcoming General Election.   With it’s political future in tatters in Seemandhra, it’s only hope was to get votes in Telangana on the strength of the perception that it is solely responsible for making the dream of the people of Telangana, come true, notwithstanding the years of agitation carried out by the TRS.

eal Estate Market Outlook

Price movement in the Real Estate market is very much similar to that in stock market. Just like the stock market discounts the impact of various matters affecting a company, well in advance of the AGM, the Real Estate market too discounts such impacts much earlier. It does not wait for the D day, to show where it stands.

Considering the historic trend we can expect steady increase from current price level and the year 2014 should end with around 10% increase, with respect to 2013.

The prices of land and plots also will appreciate during the year.

Once the Telangana state presents its budget, everyone in Telangana including Hyderabad will forget about Andhra, that being a different state!  The prices of real estate in Hyderabad will zoom up to match with those in Bangalore & Chennai.

The dream period of  low prices of properties in Hyderabad is almost over!      A new chapter will open soon, which will be bad for  buyers, since they have to pay much more that they were used to.

T State: KCR sees boom in real estate prices

Hyderabad, March 20 (Hyderabad Deccan News): Telangana Rashtra Samithi president K Chandrasekhar Rao on Sunday sought to dispel any apprehensions that the real estate prices would crash in and around Hyderabad after Telangana state is created.
a€oeOn the contrary, the real estate would see a boom with prices skyrocketing,a€ KCR stated.
Speaking at a function to welcome members of the Communist Party of India (Marxist) in the TRS fold, KCR said that Hyderabad would be recognised as a a€˜happeninga€™ city on the international map. He said that with the influence of leaders from Seemandhra regions coming to an end after the formation of Telangana, investors would not hesitate to come to the city and the newly carved state would see dramatic development.
Reminding that the erstwhile Nizama€™s Dominion was the richest in the world, the TRS chief said that the Seemandhra rulers had over the years exploited the region and made money for themselves.
Promising the people of the region that they would be greatly benefitted, the TRS chief reminded that taxes paid by them to the Nizams had made the region the wealthiest in the world. The same situation can be replicated after Telangana is formed, he stated.
Claiming that the Telangana region was neglected a€˜totallya€™ after the formation of Andhra Pradesh on November 1, 1956, KCR said that the sustained exploitation had resulted in Mahabubnagar district alone losing about Rs one lakh crore in revenues.

The TRS chief also pointed out that former prime minister Jawaharlal Nehru had assured the Telangana people that they can take a€˜divorcea€™ from Andhra Pradesh as and when they chose to. He said that the time has come to end the