Introduction
In October 2024, Hyderabad’s once-thriving real estate market is grappling with significant challenges. Recent data reveals a notable decrease in property registrations, combined with regulatory hurdles and heightened environmental enforcement. Here’s a look into the factors contributing to this market shift and what stakeholders are advocating to restore balance.
1. Property Registrations Drop by 25%
Recent statistics reveal a steep 25% year-over-year decline in Hyderabad’s property registrations. In September 2023, around 51,144 properties were registered, while this figure fell to 38,464 in September 2024. This decline has alarmed stakeholders and raised questions about the market’s stability. The Telangana Realtors Association attributes this dip largely to regulatory actions by the Hyderabad Disaster Response and Asset Monitoring and Protection Agency (HYDRAA), which has demolished properties encroaching on lake and river boundaries
2. Environmental Regulations and HYDRAA’s Active Role
HYDRAA’s recent crackdown aims to protect Hyderabad’s natural water bodies, which has led to increased scrutiny of properties near these zones. This has caused hesitancy among potential buyers, who fear their investments might be at risk if classified within a water body or “nala” (drain) area. To address these concerns, stakeholders, including the Telangana Realtors Association, are calling on the government to clearly mark the boundaries of these protected areas. Such measures could alleviate buyer anxieties and potentially stabilize the market
3. Delays in Layout Approvals and the Call for Administrative Reforms
The Confederation of Real Estate Developers Association of India (CREDAI) has highlighted administrative bottlenecks as another factor impeding Hyderabad’s real estate market. Delays in layout approvals—particularly in areas outside the city center—have impacted development timelines and created uncertainties for developers. CREDAI has urged the government to adopt a more efficient approval process, ideally with consistent standards across urban and rural zones
4. Advocating for Incentives and Reduced Registration Charges
CREDAI has proposed several measures to support the real estate market, including incentives for affordable housing projects and reduced registration charges to encourage homeownership. Currently, property registration fees in Telangana stand at 7.5%, which CREDAI suggests should be reduced to 5%. Additionally, they have proposed a further reduction if the buyer is a woman, to encourage more participation in the market. By easing financial constraints, these measures could stimulate market activity and make homeownership more accessible
5. The Road Ahead: Aligning Policies for Market Revival
While Hyderabad’s real estate market faces considerable challenges, aligning policies with stakeholder needs could bring back momentum. Improved clarity on protected zones, streamlined administrative processes, and financial incentives could all contribute to restoring buyer confidence and fostering growth in the sector. For developers, creating a transparent and supportive environment will be key to adapting to these evolving regulatory and environmental demands.
Conclusion
The October 2024 update on Hyderabad’s real estate market underscores a challenging period, with a decline in registrations, regulatory pressures, and administrative delays. However, with collaborative solutions and proactive government initiatives, there is potential to revitalize Hyderabad’s property landscape. Stakeholders and policymakers must work together to create a sustainable and stable market environment that benefits both buyers and developers in the long term.
references : Telangana Today , The New Indian Express.
