The real estate sector in Telangana is facing a downturn. The real estate business, which was booming until 2023, is now gradually slowing down. Along with the construction industry in Hyderabad, the realty business across the state is also slowing down. In Greater Hyderabad, home sales have decreased, and land prices in the districts are falling, causing widespread concern. However, real estate experts suggest that the skyrocketing land prices in Telangana, which were rising without control, are also a contributing factor to this slowdown.
From 2004 to 2023, the real estate sector in Telangana was booming. The construction industry in Hyderabad soared to new heights, while in the districts, land and venture businesses flourished. However, the situation has now changed. In Greater Hyderabad, the construction industry has slowed down, and in the districts, land and plot sales have significantly dropped. To make matters worse, the prices of land are falling, which is causing concern. Despite having land and plots ready for sale, investors are not coming forward. Real estate experts suggest that the skyrocketing land prices reaching a 10-year peak are the main reason for this slowdown.
Until recently, real estate business was thriving in the districts surrounding Hyderabad. In the united districts of Rangareddy, Sangareddy, Mahabubnagar, and Medak, land prices skyrocketed. Along National Highway 44, areas such as Kothur, Shadnagar, Bala Nagar, Rajapur, Jadcherla, Palamuru, and Bhoothpur saw booming real estate activity. Likewise, land transactions were flourishing in areas like Sangareddy, Sadashivpet, and Zaheerabad. From Ghatkesar and Bhongir to Yadagirigutta, the real estate boom continued. Depending on the location, the price for one acre of land ranged from Rs 3 crores to Rs 6 crores, and for land per square yard, the price varied between Rs 30,000 to Rs 80,000 based on the area and the project. Even in rural areas, the price for one acre of land ranged from Rs 30 lakhs to Rs 80 lakhs, and for residential plots, the price per square yard ranged from Rs 15,000 to Rs 30,000. However, real estate experts state that these prices reaching a 10-year high have become a problem.
In 2014, the real estate business suddenly picked up momentum, attracting many people into the sector. Those who entered the real estate business started raising land prices arbitrarily. In rural areas, the price of an acre of land, which was between Rs 8 to Rs 10 lakhs, was increased to 20 to 30 lakhs, with investors from Hyderabad purchasing this land. Similarly, middle-class families began buying plots in ventures for weddings and other needs, contributing to the rise in prices. The prices of land and plots reached a certain level, but to be honest, they had exceeded the market value. However, from 2023 onwards, the situation suddenly changed. The real estate sector gradually started slowing down, with sales of land and plots declining, and prices started falling as well. These developments in the real estate market have raised doubts about where the sector is headed in the future.
Currently, even if someone urgently needs to sell land or plots, no one is willing to buy at the prevailing prices. Even if they try to sell at a lower price, the lack of interest in the investments made has resulted in a state of silence. Some businesspeople, who are struggling to pay interest on their investments, are forced to sell land and plots at much lower prices than the investment made. As a result, over the past few days, the prices of land and plots have been falling. With business stagnating in various places, the new real estate ventures are selling land at reduced prices per square yard. In rural areas around Hyderabad and surrounding districts, land prices have dropped by 20 to 30 percent. However, there is still little movement in terms of buyers showing interest. This situation raises questions about when the change will occur and when the real estate sector will recover, leaving the real estate market grappling with uncertainty.
