Hyderabad: The once-flourishing real estate sector in Telangana, particularly in Hyderabad, is now witnessing a severe downturn as changing economic conditions, market dynamics, and government policies have dashed the middle-class dream of owning a home. The sector, which had seen rapid growth following the formation of Telangana, is now struggling with a sharp decline in property sales and the stalling of new projects.
According to data from the state’s Stamps and Registrations Department, property registrations have significantly dropped in 2023 compared to previous years. Between April and September this year, only 9.19 lakh registrations were recorded, a decrease compared to over 10 lakh registrations during the same period in the last two years. The market has come to a virtual standstill, with both builders and buyers facing financial difficulties. Builders, especially those who took loans expecting a strong market, are now dealing with unsold properties and stalled construction projects.
The areas most affected are in the outskirts of Hyderabad, including Kollur, Ranga Reddy, and Medchal-Malkajgiri, where several major projects, such as the Hallmark project, have come to a halt. Independent house constructions in 100-200 square yard plots are also suffering, with many developers facing losses after taking loans for their projects.
The commercial real estate sector, particularly office spaces, has also seen a steep decline in demand. Key office districts like Gachibowli and the Financial District are witnessing high vacancy rates, with many “Grade A” office buildings remaining empty. The demand for office spaces, which surged during the previous administration due to the influx of IT and data companies, has now stagnated.
Experts are pointing to the lack of clear policy direction from the current government and the impact of decisions under the “Hydra” framework, which are believed to be adversely affecting both residential and commercial real estate markets. The sharp drop in registrations and the consequent decline in revenue from stamp duties reflect the broader economic slowdown. In September alone, the state’s registration department saw a 30% revenue drop, with just 80,000 transactions, generating only ₹650 crore, a sharp decline from previous months’ averages.
As builders face cash shortages and banks become reluctant to provide loans, the situation is becoming more critical. If this trend continues, experts warn that Telangana’s real estate sector, along with its associated industries, could face a prolonged crisis.
