Telangana Real Estate Sector Under Pressure Amid Falling Transactions

Telangana’s real estate sector has witnessed a sharp downturn, with land buying and selling hitting a major slump and triggering serious concerns over the state’s revenue outlook. Critics attribute the decline to what they describe as ineffective and inconsistent policies of the A. Revanth Reddy–led Congress government.

Policy Uncertainty and “Hydra Effect” Hit Construction Sector

The combined impact of the so-called “Hydra effect” and the absence of a clear government policy on the construction sector has severely affected real estate as well as allied industries. After showing steady growth since the formation of Telangana, real estate returns have dramatically reversed over the past two years under Congress rule.

Urban and Rural Markets Both Affected

The slowdown is not limited to urban centres alone. Rural Telangana has also been badly hit, with even agricultural lands struggling to find buyers. This has led to a sharp fall in land registrations across the state, directly impacting stamp and registration revenues—one of Telangana’s key sources of income.

Stamp and Registration Revenues Slide Sharply

According to the latest data from the Comptroller and Auditor General (CAG), despite the severe impact of the COVID-19 pandemic, stamp and registration revenues stood at 52% in 2020–21. During the second wave in 2021–22, the state achieved 98% of its targeted registration revenue. However, after A. Revanth Reddy took charge as Chief Minister, collections fell sharply to just 46% in the 2024–25 financial year.

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Current Year Targets Missed by a Wide Margin

For the current financial year, the government set a target of ₹19,087.26 crore under stamps and registrations. By November 2025, collections had reached only ₹9,911.26 crore, accounting for just 51.93% of the annual target, reflecting the continuing slowdown in property transactions.

Land Revenue Collections Paint a Bleak Picture

Land revenue figures present an even more worrying scenario. In the 2025–26 budget, the government projected land revenue of ₹11.20 crore, but by November only ₹47 lakh had been collected—just 4.21% of the target. In 2024–25 as well, collections up to November stood at a mere ₹73 lakh. Despite increased budget estimates year after year, actual revenues have failed to keep pace.

CAG Flags Declining Performance

CAG reports reveal a consistent decline in the percentage of targets achieved by November each year. The highest performance was recorded in 2022, when stamp and registration revenues reached 60.31% of the annual target by November. Since then, the trend has steadily weakened.

Experts Warn of Structural Decline

Real estate experts warn that Telangana’s property market has lost stability over the past five years and is now moving in a regressive direction. They argue that the government’s inability to achieve even half of its projected revenues is a clear indicator of the deepening crisis facing the real estate sector.

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Strong Growth During the KCR Era

In the post-COVID period, many investors shifted their funds towards real estate, expecting better returns compared to gold and stock markets. Rising land prices encouraged large-scale investments in agricultural lands and residential plots. As a result, stamp and registration revenues—which had not crossed ₹7,000 crore until 2019–20—doubled within two years, crossing ₹12,000 crore in 2021–22.

Peak Years: 2022 and 2023

The real estate sector reached its peak in 2022 and 2023, generating over ₹14,000 crore annually for the state exchequer through stamp and registration collections alone. However, within just two years of the Congress government assuming power, the sector has reportedly entered a phase of sharp decline.

Registrations Dry Up, Offices Lie Idle

With land purchases and sales drying up, registration and tahsildar offices across Telangana are witnessing minimal activity. This steep fall in transactions has dealt a heavy blow to stamp and registration revenues, further intensifying concerns over the state’s economic and fiscal health.