In Telangana, after Hyderabad and Warangal, Karimnagar has long been a promising hub for the real estate sector. During the tenure of the BRS government, both agricultural and commercial land values skyrocketed. Land that once sold for between five to seven lakhs per acre has seen a meteoric rise to prices ranging from Rs. 20 to 40 lakhs per acre in KCR’s rule. Even properties previously considered unsuitable for purchase fetched crores, fueled by growing demand.
This rapid appreciation is largely attributed to the Kaleshwaram Lift Irrigation Project, which has dramatically increased agricultural land value. Regions once plagued by drought have become lush and green, supported by consistent irrigation, a steady supply of free electricity, and an active farming community. Land sales have flourished as a result, but recent trends suggest that this growth is now slowing.
The impact of Hyderabad’s HYDRAA initiative on Karimnagar has started to unfold. Registration data from the past three years shows that 7,000 to 8,000 property sales were completed monthly across the district’s 13 sub-registrar offices, peaking at over 9,000 registrations per month and generating monthly revenues of Rs. 20 to 25 crores. However, in October, only 3,115 registrations were recorded, and revenue dropped to 9.77 crores, reflecting a 45% decline in revenue as sales have significantly slowed.
The situation is expected to persist into November, with registration officials indicating even lower sales this month. Contrary to expectations of a market rebound after the Dasara festival, real estate activity has continued to slow, raising concerns about potential prolonged downturns.
The decline in real estate has reverberated across related sectors, particularly construction. Brick production in Karimnagar has dropped by 20-30%, affecting over 125 brick manufacturers who previously produced around 100 crore bricks annually. This reduction is most noticeable in Peddapalli district, which alone accounts for 50 crore bricks. While these bricks are typically sold out by October, many producers now expect stock to last until March due to reduced demand.
Similarly, two major cement manufacturers in Adilabad have reduced production by 20%, and aggregate and ready-mix concrete (RMC) companies are also feeling the pinch. The granite industry, which employs over 380 granite-cutting machines in Karimnagar, is facing significant financial strain. Production of granite has slowed, prompting some operators to declare Sundays as production holidays to cut costs.
As the construction industry faces a downturn, stakeholders across these sectors are increasingly uncertain about the future. The economic outlook remains uncertain, with industry insiders anticipating that the downward trend may continue across Karimnagar’s interconnected construction ecosystem.