Hyderabad Real Estate in Turmoil: 200-Meter Buffer Zones Trigger Panic Under New LRS Rules

Hyderabad Real Estate faces intensified turmoil as Telangana’s New LRS Rules enforce 200-Meter Buffer Zones around urban water bodies under the Land Regularization Scheme (LRS). The revised regulations have expanded restricted areas sevenfold—from 30-50 meters to 200 meters—plunging thousands of plot owners into crisis and exacerbating the sector’s stagnation.

What’s New LRS Rules with 200-Meter Buffer Zones?

• Buffer Zone Expansion: Restricted areas around lakes, rivers, and water bodies now span 200 meters (656 feet), up from 30-50 meters.
• Fresh NOCs Mandatory: Plot owners must obtain new No Objection Certificates (NOCs) from Revenue and Irrigation departments, invalidating older approvals.
• 25% Rebate with Strings Attached: Authorities urge applicants to pay LRS fees upfront for a rebate on open-space charges, but scrutiny has intensified.

Also Read: Telangana’s Call Center for LRS: Everything You Need to Know Before March 31

Why Are Plot Owners Panicking?

The sudden rule change has blindsided landowners. Earlier, NOCs issued by state departments were sufficient for transactions. However, after the Hyderabad Metropolitan Development Authority (HMDA) demolished illegal structures near Katwa Cheruvu and other water bodies, the government tightened norms.

• Market Value Plummets: Properties within 200 meters of water bodies are now deemed “controversial,” deterring buyers and slashing land values.
• NOC Delays: Staff shortages in Revenue and Irrigation departments could prolong the approval process, complicating sales and development.
• Uncertain Motives: Critics question the government’s abrupt policy shift, suspecting financial motives amid a state treasury deficit.

Also Read: Telangana Government Clarifies Rules for Layout Regularisation Scheme (LRS)

GO 168 vs. New Rules: A Stark Contrast

Existing regulations under GO 168 (2012) defined buffer zones as:

• 9 meters for ponds/lakes under 10 hectares.
• 30 meters for larger water bodies.
• 50 meters for urban rivers.

The new 200-meter rule—a 566% increase—has shattered these benchmarks, leaving investors questioning its feasibility.

Real Estate Sector Braces for Impact

Hyderabad’s property market, already strained by sluggish demand, faces deeper setbacks:

• Transaction Freeze: Buyers avoid plots near water bodies due to legal ambiguities.
• Agent Struggles: Brokers reliant on small-plot commissions face dwindling incomes.
• Construction Halt: Developers pause projects awaiting clarity, risking job losses.

What’s Next for Plot Owners?

While officials assure regularization for plots outside FTL and buffer zones after scrutiny, stakeholders demand transparency. Industry experts warn that without policy revisions, Hyderabad’s real estate could face:

• Long-term devaluation of lakeside properties.
• Legal battles over disputed land titles.
• Erosion of investor confidence.

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The Telangana government’s revised LRS guidelines have plunged Hyderabad’s real estate into uncertainty. With buffer zones now spanning a quarter-kilometer and NOC hurdles multiplying, plot owners and agents brace for tougher times. As the Congress-led administration races to boost revenue, the human and economic costs of these measures remain under scrutiny. For now, the sector’s recovery hinges on policy clarity and stakeholder dialogue.

| Reported by Munsif