Clear government policy on real estate
Congress government’s stance on 111 GO
It’s unnecessary to specify that Telangana means Hyderabad. The state thrives only when the city is flourishing. While Telangana’s revenue is at one level, Hyderabad’s income is at another. The real estate sector in Hyderabad is a major source of income and provides significant employment opportunities. Since the Congress government came to power last December, the realty market has been stagnant.
Major real estate companies in the Greater Hyderabad area have found themselves in a state of uncertainty. The primary reason for this is the lack of a clear real estate policy since the government led by Revanth came to power. As a result, realtors are left wondering whether to continue construction in the Greater Hyderabad or wait for some time.
Meeting with construction sector…
Discussions with the construction sector have become necessary as the Revanth Reddy government’s stance on incentives for the real estate industry remains unclear. Additionally, the implementation of the Hydra project has caused instability in Hyderabad’s construction industry, leading to concerns that buyers are retreating. Despite the Congress government being in power for over 10 months, Chief Minister Revanth Reddy has not yet held an official meeting with the construction sector. While he met briefly at a hotel in Madhapur before his trip to the U.S., the details of that conversation have not been made public.
It is rumoured that apart from a few builders meeting the Chief Minister individually, there has been no initiative to hold a meeting with the real estate industry as a whole. Experts are suggesting that Chief Minister Revanth Reddy should convene construction companies and real estate associations in Hyderabad for discussions. There is a growing opinion that it would be beneficial for the government to engage with the realty sector regarding development programs and infrastructure initiatives planned for the city. This would allow construction industry representatives to provide their advice and recommendations, as well as discuss necessary actions for the sector’s development.
Clear policy on real estate
It is natural for some doubts to arise in the real estate market when a new government is formed. However, experts remind us that it is the government’s responsibility to eliminate the prevailing uncertainty among realtors. They suggest that the government should review old policies and introduce real estate-friendly measures as a corrective action to stabilise the market. Despite the Revanth government being in power for over 10 months, it has not yet revealed its stance on the real estate sector.
Therefore, there are calls for officials to consult with real estate experts and announce a clear policy on real estate. This would allow for better alignment with the Telangana government’s priorities and future plans, enabling the construction sector to move forward accordingly. In this context, it is also suggested that real estate professionals and national-level real estate firms should be involved in the policy formulation process.
Need to accelerate approvals…
The real estate sector is expressing concern that delays in granting approvals for new projects are leading to significant losses. Builders are worried that if projects stall on purchased lands, they will struggle to pay interest. The Revanth Reddy government has not yet made any decisions regarding approvals for projects. While officials claim that all construction-related permits are being issued in Hyderabad, allegations suggest that the process is slow and that no actions are being taken to remove the obstacles involved.
There are also claims that the TS-BPASS system established by the previous government is gradually losing its effectiveness. Therefore, there is a call for the government to take responsibility and show initiative. It is suggested that a special system be set up to expedite the granting of construction approvals. The real estate community is requesting that measures be taken to ensure that construction permits are issued transparently.
Clarity needed on GO 111…
Although the previous BRS government revoked GO 111, it left the policy unclear. The current Congress government has not yet revealed its stance on GO 111. The government’s position on constructions within the GO 111 scope remains undisclosed. Not only builders but also millions of ordinary citizens are expressing doubts about this issue. Concerns have already arisen regarding the properties and housing plots bought by the public within the scope of GO 111.
Therefore, the real estate sector is urging the Telangana government to provide clarity on GO 111 as soon as possible. This would bring clarity to the future of development and construction in Hyderabad. Since the matter pertains to approximately 132,000 acres under GO 111, realty stakeholders are suggesting that the Telangana government consult with everyone and make a policy decision.
Along with Future City…
The Telangana government is currently focusing primarily on Fourth City-4.0. The Revanth government is taking steps to establish offices for both public and private sector companies, as well as various industries, in Future City. However, the real estate sector is suggesting that attention should not be solely on Fourth City but also on the development of other areas in Hyderabad.
If initiatives are taken to set up IT and pharmaceutical companies throughout the city, Greater Hyderabad would expand in all directions. For this, the Revanth government is being urged to announce a comprehensive development plan for Hyderabad, with a focus on establishing infrastructure facilities across all areas of the city.
LRS applications need to be cleared…
Real estate stakeholders are urging the government to immediately clear the long-pending LRS applications in the state. Since 2020, approximately 2.567 million applications have been pending under LRS. Of these, the highest number is from municipalities, totalling 1.054 million, followed by 1.076 million from village panchayats, with the remaining applications coming from corporations. So far, only 4,90,000 applications have been reviewed, and only about 85,000 of these have been approved.
Although the Chief Minister has conducted a review of LRS once and the Revenue Minister three times, no solutions have been found. Stakeholders are appealing for the government to take the initiative and resolve the LRS applications promptly.
