In Congress rule, the real estate sector in Hyderabad has seen a dramatic decline, plummeting from prices as high as Rs. 100 crores per acre to a point where the market is struggling to sell even 1,500 units per month. This troubling trend contradicts the claims made by the opposition and Congress leaders.
However, multiple reports from various real estate research institutes have confirmed this downturn. In fact, Chief Minister Revanth Reddy has openly acknowledged that the city’s real estate market has recently suffered.
Despite the Congress government’s initiatives like the Fourth City and Musi development project, it has become evident that conditions on the ground differ significantly from the government’s optimistic projections. The Hyderabad Metropolitan Development Authority (HMDA) has recognized the declining market, as reflected in the statements made by government officials.
Consequently, the auction of developed land in the city is under reconsideration. Although there were plans to sell land in proposed layouts, these initiatives are being reassessed due to the current market conditions. Reports indicate that earlier efforts to collect land from farmers for development under the land pooling system have also been put on hold. HMDA sources suggest that no action will be taken on land auctions until the market in central Hyderabad shows signs of recovery.
Plans to create new residential areas resembling satellite townships around the city have also stagnated. Approximately 1,200 acres in Medchal and Rangareddy districts were slated for collection and development through land pooling. However, management issues, funding shortages, and a lack of coordination among farmers have led to these proposals being shelved amid the challenging real estate market conditions.
The real estate market in Hyderabad was significantly paralyzed during Congress rule, with particularly low sales of open layouts in the suburbs. Builders and developers report that even with a demand for residential projects, sales remain dismally low, with monthly sales not exceeding 1,500 to 1,800 units. In light of these circumstances, HMDA believes that developing new projects at considerable costs only to sell them at a loss is not a sound strategy.
The international recognition that Hyderabad’s real estate market once enjoyed, bolstered by land auctions in areas like Kokapet and Budvel, now seems to be fading. Plans to develop and sell 12 acres of land in Banjara Hills have also been stalled, as officials weigh the risks of entering a market with little demand, which could further diminish government revenue.