- Real estate uncertainty affects land prices across the state
- Real estate sector faces pressure amid policy changes
Hyderabad: Real estate uncertainty has deepened across Telangana, with land prices falling and transactions slowing in many areas. The situation has emerged after the Congress government came to power in the state. Market participants say policy changes and administrative decisions have weakened confidence among developers and buyers.
According to reports, several issues have contributed to the present real estate uncertainty. These include the demolition of Hydra, the abolition of Pharma City, confusion over the reorganization of districts, the proposed division of GHMC, and the Gandhi Sarovar project. As a result, developers and buyers have become cautious, which has slowed activity in the sector.
During the ten year rule of the BRS government, an acre of land was reportedly sold for more than Rs. 50 lakhs in many parts of the state. However, market sources now say it is difficult to sell land even for Rs. 30 lakhs in several places. Meanwhile, houses and plots are also not being sold quickly. Therefore, many real estate traders say they are facing serious financial difficulties.
Developers also point to the global economic slowdown and uncertainty in the IT sector. However, many traders argue that administrative decisions and policy changes taken by the Congress government have increased pressure on the real estate sector.
The impact is also visible in government revenue from property registrations. Data from the Stamps and Registration Department shows that the department received 75.68 percent of its revenue target till January in the financial year 2023 to 24. In contrast, only 64.68 percent of the budgeted target for 2025 to 26 was achieved by January. Therefore, registration revenue has fallen by 11 percent in the last two years.
According to CAG calculations, the Stamps and Registration Department collected Rs. 10,713.44 crore till December in 2022 to 23. By January, the amount reached Rs. 11,806.61 crore, which met 75.68 percent of the budget estimates. Under the current Congress government, the department collected Rs. 11,304.19 crore till December in 2025 to 26. By January, the total reached Rs. 12,345.81 crore, which is 64.68 percent of the target.
Meanwhile, real estate transactions have slowed as buyers adopt a wait and see approach. Market observers say the Hydra demolitions and activities along the Musi river banks have created concern among investors.
The cancellation of the Pharma City project proposed by the previous BRS government has also affected investor sentiment. At the same time, announcements about changes in district boundaries have added to confusion. The High Court notices regarding the proposal to divide GHMC into three corporations have further affected buyer confidence.
The Gandhi Sarovar project, proposed at Rs. 5,000 crore, has also faced opposition due to land acquisition and demolitions. As a result, the Hyderabad real estate sector is facing a difficult phase.
Industry reports also reflect the slowdown. An Anarock report states that the supply of new homes in the third quarter of 2025 fell by 38 percent compared to the previous year. Residential sales in Hyderabad dropped by 23 percent to 44,885 units from 58,540 units.
Similarly, a Knight Frank India report shows that property registrations in January 2026 declined by 14 percent year on year. Transactions of homes priced above Rs. 1 crore also saw a major fall. Hyderabad also recorded the highest office space vacancy rate among the top seven cities in the country, with a 39 percent decline in the supply of new office space.
CREDAI Telangana representatives say investors are adopting a wait and see approach due to policy uncertainty and an unfavorable international environment. However, some developers remain hopeful that market conditions may stabilize in the future.
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