HyderabadReal estate players in Telangana have had mixed reactions to the state government’s restructuring proposals after the state government announced its intention to reduce the number of districts from the current 33.
A judicial commission is likely to be appointed to oversee the process. The proposal suggests aligning the districts with congressional districts, but no concrete steps have been taken yet.
Historically, the creation of new districts has boosted property prices as they add infrastructure such as district headquarters and government offices. But some real estate agents believe the planned reduction in the number of districts could slow the real estate market.
Highlighting the potential risks and benefits, experts said, “Land prices in Telangana have been suppressed for the past decade. After bifurcation, expectations were high and many returned to villages to purchase land. Prices have risen but have not fallen significantly as Telangana has not experienced any distress sales. The impact of the proposed restructuring is still uncertain and needs to be closely watched.”
Another real estate expert, speaking on condition of anonymity, pointed out, “Decentralization is always beneficial. Reducing the number of districts may benefit headquarters but it may hinder growth in surrounding areas. Investment in existing districts may not yield the same benefits. Decentralization is favorable for residents as it reduces the need to travel far and encourages the construction of buildings, roads and other infrastructure.”
Overall, real estate agents are divided on the proposed changes. Some see potential benefits to decentralization and infrastructure development, while others fear it will slow down the real estate market and limit growth outside of the new district headquarters. The final outcome will depend on how the restructuring is implemented and what impact it has on infrastructure development and decentralization.
This post was last updated on May 24, 2024 at 1:22 pm
