Introduction
Before the Congress government came to power, the construction sector in Hyderabad was enjoying its best phase. Real estate experts predict that the same situation will continue even after the formation of the Congress government. However, the Congress government has adopted a different approach concerning the real estate sector.
Table of Contents
- Hyderabad Real Estate Has Frozen for the Last 4 Months
- Former Director Balakrishna Arrested
- Govt Exchequer Is About Rs. 1500 Crores Income!
- MP Election is the Reason for This?
It seems that the government led by Revanth Reddy strongly feels that there were irregularities in the matter of permits during the previous government’s regime. Hence, approvals for new multi-storied buildings and luxury villa projects in Hyderabad have come to a complete standstill.
Hyderabad Real Estate Has Frozen for the Last 4 Months
Since last December, some developers have been facing difficulties as they do not know what to do as they have not received permits for new constructions. It must be said that no new projects have been started in the Hyderabad real estate market for the last four months.
Many developers of Hyderabad city have planned to launch new projects in December or January. Some builders also prepare construction designs simultaneously. All of them are concerned that no matter which government comes to power, the permits will not be kept pending.
Former Director Balakrishna Arrested
But the Greater Hyderabad Muncipal Corporation (GHMC) and HMDA officials were shocked by the arrest of Balakrishna, the former director of HMDA. We have reached a stage where even the building committees have not laid the foundation as the state government has also said that the permissions for new skyscrapers and luxury villas should be withheld.
Overall, while the national real estate market is picking up, the real estate sector in Hyderabad has stagnated for the past 4 months. Realty experts also agree that the lack of permissions for new projects is the main reason for this.
Govt Exchequer Is About Rs. 1500 Crores Income!
In Hyderabad, the Congress government feels that the previous government has granted more permissions than it intended. That is why the news that new permits have stopped is heard everywhere. If that’s true, many developers say they should study whether they can be granted in other areas instead of those where more permits are issued.
They say that if the previous government followed the rules and gave permission, at least this time they can examine everything and give permission. Experts say that around a hundred projects around Hyderabad are awaiting approvals. For each high-rise permission, builders pay around one and a half crores as a construction fee of around one lakh square feet.
Each builder pays fifteen crores to GHMC or HMDA to develop ten lakh square feet of land. It is reported that around 100 projects under GHCM and HMDA are awaiting approval. By granting these permissions, the government exchequer will earn up to Rs.1500 crores. It is not clear why the government is giving up so much revenue.
MP Election is the Reason for This?
CM Revanth Reddy, who has full knowledge of the construction sector in Hyderabad, is not focusing on the real sector. Some builders feel that no one cares much about real estate because of the MP elections. However, the real estate sector is demanding that the Revanth government should give proper permission to the new constructions so that the real estate sector does not collapse.
Conclusion
Under the leadership of CM Revanth Reddy, the real estate market in Hyderabad has come to a complete standstill during the Congress government. He is investigating buildings under construction without permitting new buildings. At the same time, the MP election also stopped the start of projects in real estate. For more information, visit openplot.
Also read: Hyderabad Real Estate Market Overview 2024