With yesterday’s landslide victory in AP by the TDP Kutami andh Hyderabad’s already slow sales, real estate conversation has been running wild both on social media and in people’s homes. I’ve had multiple DM’s since yesterday asking about my opinion, so here is my analysis.

While, long-term I don’t believe Hyd market will be affected, I believe there will be a temporary slowdown in sales until TDP announces & starts executing their development plans in AP, this could be anywhere between 6-12 months conservatively.

Even in the long term, different segments can be impacted differently, for example the > 1Cr home buying may not see a shift to AP as the buyer persona is completely different, but Agri land and plots could see a decline.

Hyd has grown on the back of buyers who come from knowledge economy-based jobs such as IT & Pharma (managerial) and these sectors may not be as big in AP even with TDP’s attempt to build it.

AP traditionally has seen migration to Bangalore from Rayalseema side, From Nellore and surrounding areas to Chennai & From Vijayawada and surrounding to Hyderabad, all these places are still more suitable for well-paying jobs and these buyers will remain in their respective areas. While Mr.CBN does come with a track record of growing IT sectors, I believe it’ll be a hard sell for companies to set up base in Andhra (inspite of benefits given to companies) as Talent may not agree to shift there in the next 5 years at least. Even after that, culturally, Nonlocals from other states may not agree to shift to AP as a 1st choice.!!

AP will definitely be a good fit for Manufacturing, Logistics & Food Processing jobs, but the Average income in these sectors is considerably lower than Tech & Higher-level Managerial jobs.

My perspective – Better to not make any hasty investment decisions until the scenario plays out further.