Telangana’s Construction Sector Posts 12% Growth, Contributes ₹80,000 Crore to State Economy

Telangana’s construction sector has recorded a growth rate of 11.97%, contributing over ₹80,000 crore to the state’s economy in FY 2024–25, according to Minister for IT and Industries Duddilla Sridhar Babu.

Speaking at the 15th NAREDCO Telangana Property Show organized by the National Real Estate Development Council (NAREDCO) at HITEX on Sunday, the Minister said that the real estate and professional services sector registered a combined growth rate of 15.4%, reflecting the sector’s strong performance and its contribution to Telangana’s services GSDP.

“Together, the real estate and construction sectors account for 24.9% of the state’s services GSDP. The construction industry alone has contributed more than ₹80,000 crore to the state economy,” Mr. Sridhar Babu said.

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He noted that the Hyderabad, Rangareddy, and Medchal–Malkajgiri districts saw a sharp rise in housing registrations in September 2024. A total of 6,612 housing units worth ₹4,804 crore were registered during the month, compared to 4,903 units worth ₹2,820 crore in September 2023, marking a 35% increase in volume and a 70% increase in transaction value.

“These figures are not just numbers—they stand as clear evidence against the misinformation that Telangana’s real estate sector is slowing down,” the Minister said.

He added that registrations of properties valued above ₹1 crore increased by 151%, accounting for 53% of the total transaction value in September.

“After agriculture, real estate continues to be India’s second-largest employment-generating sector. While the sector’s share in GDP is about 10–15% in developed countries and 23–25% in China, it is currently 6–8% in India, which must rise further,” he said.

Outlining the State’s upcoming infrastructure initiatives, Mr. Sridhar Babu said projects such as Elevated Corridors, Metro Rail Phase-II, Bharat Future City, Musi Riverfront Beautification, and the Regional Ring Road would “reshape Telangana’s economic and urban landscape.”

He added that by December, the government aims to complete the zonal planning of the Bharat Future City, and within two to three months, perform the groundbreaking ceremony for the 200-acre AI City, which will be developed to international standards.

“The State Government will continue to extend every possible support to the real estate and construction sectors, which remain vital pillars of Telangana’s economic growth,” the Minister assured.

The event was attended by NAREDCO Telangana representatives, including Vijayasai Make, Kali Prasad Damerla, Dr. Lion Kiran, K. Sridhar Reddy, and R. Venkateshwara Rao, among others.