Challenges Facing Hyderabad's Real Estate Market: Slow Recovery Amidst Uncertainty

The elections are over, and it has been ten months since the Congress government took office, yet the real estate sector in the State remains sluggish.

Builders and developers had high hopes that the Dasara festivities would spark a revival, but those expectations have not materialised due to a lack of buyer interest.

The Dasara season is usually a good time for buying property, with more inquiries and bookings. However, this year, there’s not much excitement in the Hyderabad market.

Several reasons are causing the slow recovery, including buyer fears after the HYDRAA demolitions, how the government is managing the sector, and delays in getting building permits.

Several builders point out that existing systems are not functioning effectively.

There’s also confusion surrounding the Dharani portal and Bhoomatha. So both consumers and the market are adopting a cautious wait-and-watch approach.

Experts say that the market will bounce back anytime soon, predicting it might take until 2025 or mid-2026 for improvement.

Narsi Reddy, Managing Director of IRA Realty, adds that while inquiries usually pick up by late July, this year’s interest has been disappointing, especially after the HYDRAA issues.

He points out that sales of open plots, which are usually the first to be affected, are very low, leading some large companies to close their offices due to falling inquiries.

Reddy advocates for the government to recognise real estate as a crucial element in the State’s development, emphasizing its role as a significant industry that generates employment and contributes to government revenue.

He asserts that fostering a positive environment in the market is essential for revitalisation.