Real Estate sector thrown into uncertainty

The real estate sector has been thrown into a state of confusion following the State Cabinet’s recent decision to scrap GO 111. This decision left buyers and developers worried about the future of their investments, particularly those who paid hefty amounts ranging from Rs 40 crore to Rs 60 crore per acre land in the Kokapet area during auctions conducted by the HMDA. This caused dismay among developers, especially considering the government’s previous support for construction of skyscrapers through GO 50. The decision to revoke GO 111 has left many developers who had initiated projects in areas such as Gachibowli, Nanakramguda, the Financial District, Puppalguda, Narsingi, Kokapet, Osman Nagar, Kollur, and Tellapur in West Hyderabad uncertain about their future prospects.

Since 2018, the State government has been actively working on developing West Hyderabad into an international city, resulting in approvals of the GO 50. Under this initiative, auctions were conducted in areas like Raidurg, Khanamet, and Kokapet, where land was sold for prices ranging from Rs 30 crore to Rs 60 crore per acre. Encouraged by this, several developers ventured into constructing high-rise buildings and skyscrapers, with some projects in the early stages, others in progress, and a few nearing completion. But the sudden cancellation of GO 111 by the government has caught many developers off guard and left them uncertain about the way forward. They are grappling with the question of what to do next and are confused about the direction the market will take in the coming days.

They are in trouble!