The creation of T-state has created a lot of unrest and confusion in the minds of investors, especially small investors on what will happen to the real estate market in Hyderabad. This document brings forth some of the aspects which www.realthorizon.com feels will come into picture. Read it to get a taste of Hyderabad realty future.

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What will be future of Hyderabad Real
Estate post Telangana?
Today we are taking up a very hot topic of Indian realty sector after much reluctance – Hyderabad post
Telangana. We did not want to discuss it on the public forum but due to increasing demand from our
readers, we are finally expressing our views on Telanganized Hyderabad.
What is Telangana?
For our international readers, let us first introduce the issue. Telangana is going to be the next state in
India which will be formed by dividing existing state - Andhra Pradesh. There are a lot of issues

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prevailing around this topic and a lot of political and social arguments have already been exchanged.
Finally the air is – the state Andhra Pradesh will be divided to make way for a new state Telangana.
But this gives rise to another domino issue – where will the golden hen, Hyderabad go? – Andhra
Pradesh or Telangana? Government seems to be struggling hard with this issue and looks like Hyderabad
will act as shared Capital for both the states or will be given a status of Union Territory. So which way
the real estate market of Hyderabad take turn – will it shoot up; or will it experience an avalanche? Let’s
explore the possibilities.
Effect on Social, Political & Economic Scenario
Now Then
Social Impact
Social unrest, communal riots now and then,
clashes between pro & anti-Telangana
communities.
No unrest, demands of both the groups shall be
considered.
People not sure of their identity – whether they
belong to Andhra Pradesh or Telangana!
Well defined boundaries, identity certainty.
Political impact
This has been a long political agenda and leaders
too are divided over the issue.
Along with the views, leaders will be divided
geographically too. Politics will focus more on
development rather than the division agenda.
Development work is crawling at a slow pace as the
leaders from different groups don’t promote
regional developments.
New projects will emerge and existing projects will
pick up pace.
Economic Impact
Hyderabad, being the IT capital of India, attracts
software investments worth billions of dollars
every year. But due to this uncertainty,
international firms are being hesitant in investing in
Hyderabad market.
With incorporation of Telangana, this uncertainty
will do away and investors will be more confident
in investing there. Companies like Facebook,
Google & Apple have long awaited plans to spread
their legs in Hyderabad.
Due to restricted investments, new jobs are not
being created in this market – very less
immigration.
Once the scenario gets clear and investors start
investing in Hyderabad, new jobs will be created
and huge chunk of IT population will migrate to the
town.

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Effect on Real Estate Markets
As is clear from the above table, the social, political & economic scenarios provide a promising picture
once division is complete. So if we extrapolate them, there seems to be no reason why Real Estate
market shouldn’t flourish. But that would be a vague approach to come to any conclusion. Let’s try to
add rationale to this extrapolation.
Sector Change Effect on Real Estate
Social
A more sustained & stable social
scenario
Definitely gives a boost to sentiments of
locals and prices shall go up
Political
Leading towards a stable and
productive government
New development projects => Boost to
real estate
Economic
A safer investment paradise for
investors
Increase in immigration => higher paying
capacity => increase in demand =>
increase in real estate pace
So if we consolidate the above factors, it looks like that you should rush and grab a property in
Hyderabad as soon as possible. We have done it, following our instincts and analysis; will you?

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Disclaimer: The above analysis is done solely by RealT Horizon. These are our views and you should add
yours before going for an investment or disinvestment in Hyderabad. <Long term position in Hyderabad>
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