REG News | Hyderabad
Several real estate and construction industry associations in Telangana are exploring the possibility of temporarily suspending construction activities amid mounting financial pressure, rising material costs, delayed approvals and shortages of essential infrastructure, according to industry sources.
Developers say the sector has faced prolonged challenges, including slower-than-expected apartment sales, increasing borrowing costs and delays in obtaining building permissions and Occupancy Certificates (OCs).
They are seeking urgent government intervention to prevent further disruption to projects and home deliveries. Builders argue that uncertainty surrounding approvals and enforcement has weakened homebuyer confidence, with some prospective buyers postponing purchase decisions.
Delays in issuing OCs are also preventing buyers of completed apartments from taking possession, while pending permissions are affecting the launch of new projects.
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Construction Costs Soaring High
Construction costs have reportedly increased by more than 25% this year, putting additional pressure on developers' finances. Prices of certain tiles and electrical wires have risen by nearly 50%, according to industry accounts.
Costs and supply uncertainties affecting PVC and CPVC pipes, uPVC window profiles, plastic fittings, paints, adhesives and waterproofing products are also disrupting construction schedules.
Higher fuel and transportation expenses, labour shortages and rising groundwater procurement costs are adding to the burden. Developers say workers who returned to their home states have not fully returned to construction sites, delaying projects and increasing labour expenses.
Prolonged construction periods also increase interest payments, salaries and other operating costs, affecting cash flows. The emerging shortage of construction water and electricity is adding another layer of difficulty.
Developers have raised concerns about transformer availability, permanent electricity connections and delays in essential utility services. Some builders are reportedly struggling to meet financial commitments, including employee salaries and bank interest payments, amid weak sales.
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Builders Seek Government Intervention
Industry associations are considering approaching other organisations to build support for a temporary suspension of construction activities. If implemented, such a move could affect project completion schedules, homebuyers awaiting possession, and employment across the construction supply chain.
However, no statewide shutdown has been formally confirmed in the information available. Builders are urging the state government to convene a meeting with industry representatives and concerned departments to resolve operational bottlenecks.
Their demands include faster project approvals and OCs, timely drainage connections, adequate water supply, improved transformer availability and uninterrupted electricity connections.
They have also sought action against alleged artificial shortages of cement and steel, measures to revive property sales and a three-percentage-point reduction in stamp duty and registration charges.
Industry representatives say timely intervention could help protect construction-sector employment, improve project delivery and restore buyer confidence. Whether the government responds with targeted relief or the associations move towards a temporary shutdown remains to be seen.
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