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Real estate slowdown: October registration revenue falls by Rs. 424 Cr compared to 2023

The real estate sector in Telangana is grappling with shrinking revenues and stalled growth. Over the past three months, real estate market activity has significantly slowed, with October showing a continued drop in income for the Stamps and Registrations Department. 

It is reported that revenue has dropped by nearly Rs. 400 crore compared to the same period last year, a decline attributed to both the Revanth government’s inaction and recent policy changes. Realtors report a lack of new government projects to invigorate the sector. 

Compounding the challenges are HYDRAA demolitions and the proposed Musi river project, both of which have added further strain. Additionally, decisions like the Fourth City initiative have added uncertainty to the market. The result has been a drop in the sale of properties, and while prices have plateaued, the volume of transactions remains low.

In October, the Stamps and Registrations Department recorded Rs. 1,219 crore in revenue, with approximately 1.23 lakh transactions—an 18% drop in transaction volume and a 34% decrease in revenue compared to last year. Since July, when the real estate slowdown began, revenue and transactions have continued to decline at a rate of about 20% in transactions and 30% in income each month.

The revenue slump has prompted Chief Minister Revanth Reddy and Deputy CM Bhatti Vikramarka to conduct frequent meetings with department heads, with a specific focus on boosting state income. A special committee has also been formed to identify new revenue sources. However, officials in the Stamps and Registrations Department are reportedly under intense pressure to raise revenue despite the market slowdown. 

Real estate players are urging the government to take concrete steps to stabilize the sector. July’s revenue of Rs. 1,531 crore has now fallen by half, with transactions declining by 40%. The industry calls on the government to adopt measures that will revive demand and support the sector amid these ongoing challenges.