Real Estate Sector in Hyderabad Faces Challenges, Construction Slows Down
The challenges facing Hyderabad’s real estate market highlight the urgent need for reforms to ensure sustainable growth and stability in one of the city’s most vital economic sectors.
Hyderabad: The real estate and construction sector in Hyderabad is experiencing a significant slowdown. This downturn has been attributed to the lack of new projects, declining residential property sales, and the absence of a stable urban development policy under the Congress government. Additionally, widespread corruption in granting construction permits has exacerbated the situation, leaving the sector in distress.
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Key Highlights:
- Decline in New Projects and Approvals
The Greater Hyderabad Municipal Corporation (GHMC) issued a total of 39,869 construction permits in 2023. However, this number dropped sharply to just 14,043 permits in 2024, reflecting the stagnation in the sector. - Revenue Losses for GHMC
The GHMC earned ₹870.96 crore in 2023 through building permits, but this revenue fell to ₹815.76 crore in 2024—a decline of over ₹55 crore. - Impact on High-Rise Construction
In 2023, high-rise buildings were a defining feature of Hyderabad’s real estate market. However, applications for high-rise projects saw a noticeable decline in areas like Serilingampally, LB Nagar, Secunderabad, and Khairatabad in the past year. - Challenges Faced by Builders
Builders have reported several obstacles, including delays in permit approvals, lack of transparency, and frequent bureaucratic objections. Permits are often withheld for months, causing financial and operational losses for developers.
Past Growth vs. Current Stagnation
During the tenure of the KCR government, Hyderabad emerged as a global city, with the IT sector, real estate, and construction playing pivotal roles. The development of world-class infrastructure attracted international investments, boosted employment opportunities, and fueled rapid growth in the real estate sector.
Hyderabad consistently ranked among the top metro cities in India for real estate growth, outperforming cities like Mumbai, Bengaluru, Chennai, and Kolkata due to its geographical advantages and cost efficiency. However, the current stagnation and uncertainty in government policies have led to a significant slowdown, raising concerns among stakeholders.
Future Outlook
To revive the real estate sector, experts suggest implementing transparent and efficient approval processes, addressing corruption, and encouraging investment in large-scale projects. Restoring trust between builders and government authorities will also be crucial in regaining the sector’s momentum.
The challenges facing Hyderabad’s real estate market highlight the urgent need for reforms to ensure sustainable growth and stability in one of the city’s most vital economic sectors.
