Real Estate Crisis in Hyderabad: HYDRA’s Impact and the Struggling Market
The Telangana Real Estate Association is voicing concerns about the policies of the Congress government, particularly those affecting small developers and real estate agents.
Hyderabad: Hyderabad’s real estate market has been struggling for the past year, showing no signs of growth in property sales, with existing projects failing to attract investments. The once-cherished dream of owning a home is increasingly becoming a nightmare for the common man. These concerns are not isolated but are echoed by real estate agents, small-to-medium developers, and research reports.
Table of Contents
Recent reports circulating on social media have highlighted that the declining trend in Hyderabad’s real estate sector is not only real but continuing. MLA Akbaruddin Owaisi of the All India Majlis-e-Ittehad-ul-Muslimeen (AIMIM) recently pointed out in the assembly that the lack of investment is due to “Hydra,” aligning his statement with the market’s current state.
Also Read: School Holidays for Sankranti: Government Clarifies
Hydra Impact on Real Estate and the Common Man
Former Minister Malla Reddy expressed that the “Hydra” phenomenon is negatively affecting both the real estate industry and the average person. He emphasized that for an entire year, no plots were sold, worsening the situation due to the government’s policies.
Investment Slowdown Across Sectors
Multiple reports indicate a sharp drop in investments in both the real estate and IT sectors in the state. Experts have warned that without immediate government intervention, the situation could worsen and lead to further economic distress.
Research Reports Paint a Bleak Picture
Recent surveys and research reports offer a concerning outlook for Hyderabad’s real estate market. A comparison of residential sales across seven major metro cities by Anarock revealed a 5% decrease in sales in Hyderabad compared to the previous year. A total of only 58,540 units were sold this year, with fewer new projects being launched.
Quarterly Sales Data:
| City | Previous Year Sales | Current Year Sales | Percentage Change |
|---|---|---|---|
| Hyderabad | 24,044 units | 12,682 units | -47% |
| Bangalore | 24,000 units | 20,880 units | -13% |
| Other Cities | Varies | Varies | -5% to -10% |
According to “Buyers Delight,” a real estate consultancy, the sales for the October to December quarter plummeted by 47%. In the previous year, 24,044 units were sold, but only 12,682 units were sold this year. In comparison, Bangalore’s market faced a more modest 13% decline in sales.
Real Estate Professionals Criticize Government Policies
The Telangana Real Estate Association is voicing concerns about the policies of the Congress government, particularly those affecting small developers and real estate agents. They argue that the current government’s approach has harmed the real estate sector instead of fostering its growth.
Recalling KCR’s Successful Real Estate Policies
Association members recalled that during K. Chandrashekar Rao’s tenure, the real estate market was thriving, with strong growth and positive investments. They have suggested that the abolition of the Land Regularization Scheme (LRS) could benefit many poor and middle-class families and help revitalize the sector.
Future Outlook and Expert Recommendations
Industry experts are calling for immediate policy revisions to restore investor confidence and revitalize the market. Without such intervention, the Hyderabad real estate market could face further stagnation, impacting the livelihoods of developers, agents, and the broader population.
