- Sales are not as expected
- Not sure if it will be revived
- Investors looking at AP now
- Delays in Approvals
- Bribing must for approvals
- Being circulated in realty circles..
(King Johnson Koyyada)
After the Congress government came into power, several builders in the city are complaining that obtaining building approvals has become a nightmarish process. As a result, they are expressing frustration over not starting new projects in Hyderabad. Some developers are relocating to metro cities like Mumbai, Chennai, and Bengaluru. Factors such as the market not being favorable here and diminishing confidence in future development are primary reasons. Additionally, there are rumors in the construction industry that approvals are only granted after bribes amounting to crores of rupees. Due to this situation, a significant number of builders are determined to expand their operations into neighboring states.
Until 2023, Hyderabad’s real estate was a topic of discussion across the country. The booming market in Hyderabad used to astonish developers from across the nation. Consequently, construction firms from other metro cities were eager to enter the Hyderabad market, choosing prime locations to start new projects. However, since the Congress government came into power, unfavourable conditions have emerged in the city’s real estate sector.
Realtors are expressing their frustration, stating that the sector has been severely impacted due to the government’s poor decisions from the beginning. The announcement by Chief Minister Revanth Reddy about developing Maheshwaram instead of Kokapet to the level of New York has also surprised the real estate community.
Despite giving bribe..
In the past three to four years, there has been a surge in high-rise buildings in Hyderabad. However, since the Congress government came into power, obtaining permits has become increasingly problematic. Real estate stakeholders report that in order to get approvals, one must first offer bribes to senior officials in the government. Only after this do they apply to GHMC and HMDA. Even when bribes are given, it seems that officials and staff at lower levels find excuses to delay moving files forward, claiming various reasons for rejection.
This indicates that not only at higher levels but also at lower levels, permissions are only granted if some form of bribe is provided. Due to this situation, some developers are unable to cope and are leaving the city for other locations. Reports indicate that some builders have already acquired land in cities like Mumbai and Bengaluru.
The solution?
Chief Minister Revanth Reddy should issue directives to GHMC and HMDA officials to expedite the approval process for new projects. In the past, Minister KTR used to announce clear policies regarding permits in various meetings and gatherings. He also declared that fines would be imposed on officials for delays in approvals. This open communication by Minister KTR made it easier for builders to obtain permits. However, the current situation is quite different. Real estate stakeholders believe that if the process of issuing permits continues in this manner, Chief Minister Revanth Reddy needs to understand that foreign and domestic companies may be reluctant to invest in Telangana.
Moreover, the absence of a dedicated minister for the municipal department, with the Chief Minister overseeing it, means that the construction sector does not receive focused attention. Many builders feel that appointing a specific minister for the municipal department could help address the issues faced by the sector. In any case, developers are hoping that the construction sector in Hyderabad will recover quickly from the adverse conditions.
