Hyderabad: The once-booming real estate plotting market in Hyderabad is facing headwinds, resulting in a sharp slowdown, with a drastic fall in demand as homebuyers increasingly prefer gated apartments and villa communities over standalone residential plots. A plotting business typically involves the buying, dividing, and selling of land parcels (plots) for development, often for residential or commercial purposes. In the context of real estate, this ‘plotting’ or ‘plotted development’ focuses on creating defined pieces of land where individuals or businesses can construct their desired buildings, rather than buying pre-built structures. Under normal circumstances, it is a smart investment choice due to the limited nature of land, its high potential for appreciation, and the flexibility it offers to buyers for future development or resale.
However, in many parts of Hyderabad, rising land prices, delays in infrastructure development, and changing buyer preferences are reshaping the city’s property landscape, particularly in the western corridors.
Industry experts say young professionals, especially from the IT sector, are driving this shift. “Unlike the previous generation, today’s buyers do not want the hassle of buying a plot and constructing a house. It requires significant time, supervision, and dependable labour—something most working professionals cannot manage,” said IT consultant and real estate analyst J Ratnakar Yadav. Convenience, security, and access to amenities are the biggest draws of integrated housing projects.
Despite weakening demand, land prices in the city’s western zones remain steep. According to Yadav, HMDA-approved plots near Lahari Resorts in Patancheru are priced around Rs30,000 per square yard, while Velimela and Kollur fetch between Rs40,000 and Rs80,000 depending on proximity to the Outer Ring Road. In Serilingampally, limited availability has pushed rates above Rs1 lakh per square yard.
However, the market’s vibrancy has diminished significantly since 2019, with many large builders halting new plotting ventures in favour of gated apartments. “Areas nearHayathnagarare seeing almost no plotting activity compared to the western growth zones,” Yadav observed.
The decline is reflected in sales numbers as well. According to Praveen Kumar, secretary of the Telangana Realtors Forum, plot sales have dropped by nearly 75 per cent over the last two to three years. “Earlier, developers could sell 100 plots in a quarter. Today, even 20–25 sales are difficult. Prices that were expected to rise have instead fallen steeply,” Kumar said. In once-popular locations such as Maheshwaram, Mansanpalli, and Yadadri, plots that commanded Rs16,000–Rs18,000 per square yard are now struggling to attract buyers. “Instead of appreciation, we are witnessing depreciation,” Kumar added.
More than 90 per cent of plotbuyers have traditionally been investors. But uncertainty over development plans, delays in road and civic infrastructure, and lack of quick appreciation have made them cautious. “There is no immediate clarity on when these areas will see large-scale development. As a result, investors are holding back,” Kumar explained.
While pockets like Mokila and Shankarpalli have remained relatively stable, most other areas are experiencing falling demand and stagnant prices. Experts believe there is still untapped potential in older layouts developed between 2010 and 2020, particularly in Kollur and Kardhanur, where thousands of unsold or underutilised plots remain. Developers offering end-to-end construction services may find opportunities here by helping plot owners build without the traditional hassles of supervision.
