The operations of Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), introduced by the Congress government, has had a profound impact on the state exchequer, significantly affecting the real estate sector. With reduced house purchases due to concerns over potential bulldozing and demolitions, the market has seen a sharp contraction. This slowdown is reflected in a notable decrease in property registrations, leading to a significant drop in state revenue.
In comparison to July, the income of the Stamps and Registrations Department dropped by Rs. 412 crore in August. The capital region, a key driver of the state’s economy, saw a drastic fall in property transactions. Hyderabad and its surrounding districts alone witnessed a revenue loss of Rs. 330 crore, which constitutes about 80% of the statewide revenue decline.
Across the state, a total of 1,33,408 documents were registered in July, contributing Rs. 1,318.81 crore to the state treasury. Ranga Reddy district alone accounted for Rs. 509 crore, making it the highest revenue-generating district. However, August saw a sharp decline in both registrations and revenue. Only 89,585 documents were registered last month, generating Rs. 906.57 crore. This represents a decrease of 43,823 registrations and a 32% drop in revenue compared to July, amounting to a loss of Rs. 412.24 crore.
The state has 12 revenue districts under the purview of the Registration Department, with Hyderabad, Banjara Hills, Ranga Reddy, Medchal, and Patancheru comprising the Greater revenue districts. These districts serve as the backbone of the Stamps and Registrations Department, contributing 80% of the department’s revenue. The impact of HYDRAA is particularly evident in these areas.
In July, these five districts registered 65,668 documents, bringing in Rs. 1,102 crore, or 83% of the state’s total revenue. By August, the number of registrations had plummeted to 45,943, with revenue dropping to Rs. 772 crore. This represents a loss of nearly 20,000 registrations and a revenue decrease of Rs. 330 crore.
Real estate professionals attribute this decline to the uncertainties brought about by ‘HYDRAA’. Buyers are increasingly hesitant, scrutinizing potential properties to ensure they are not located within Full Tank Level (FTL) or buffer zones, delaying transactions and hindering growth.