Hyderabad’s real estate sector is grappling with a double blow, as consumer interest in property buying remains weak, and the government shows little urgency in addressing the concerns of builders and developers.
Despite multiple appeals and detailed lists of challenges presented by industry stakeholders, there has been no significant response from the authorities. The sector, which was flourishing just last year, has now hit a rough patch, with developers struggling to cope with the ongoing slowdown and lack of government support.
CREDAI Telangana Urges Government to Address Real Estate Sector Challenges
The Confederation of Real Estate Developers Association of India (CREDAI) Telangana has raised several concerns with the government, highlighting the urgent need for reforms to boost the real estate sector. Despite presenting a list of issues and suggestions back in August, there has been little progress, says a CREDAI member.
One of the key concerns voiced by the real estate body is the significant delay in granting layout approvals in various districts. The issue was discussed at a program attended by Irrigation Minister N. Uttam Kumar Reddy and Roads and Buildings Minister Komatireddy Venkat Reddy. Although district Collectors are responsible for approving these permissions, their busy schedules have led to prolonged delays, according to CREDAI members.
Additionally, the approval process is further slowed by the requirement to obtain multiple No Objection Certificates (NOCs) from departments such as revenue, irrigation, panchayati raj, and Roads & Buildings (R&B). Even when all required documents are submitted, officials continue to demand additional NOCs, causing further bottlenecks, CREDAI pointed out.
CREDAI has also recommended several initiatives to support affordable housing projects. While the Central government offers a 1% GST, loan-based interest subsidies under the Pradhan Mantri Awas Yojana, and income tax exemptions for developers, CREDAI urged the State government to offer similar incentives. It also suggested reducing stamp duty for affordable housing to make homeownership more accessible.
As the State government is drafting a new master plan, CREDAI called for uniform regulations across both city and district areas. Currently, there are disparities between urban and district rules, and the real estate body recommended adopting a consistent approach.
Another major concern is the proposed revision of market values. While CREDAI supports this move, it has requested a reduction in registration charges from 7.5% to 5%. Furthermore, the association suggested an additional 1% reduction if the property is registered in a woman’s name, as a way to encourage more female property ownership.
CREDAI also sought a relaxation of construction norms in peri-urban zones, where current rules permit development in only 25% of the area. The association proposed height restrictions instead, to stimulate more activity in these zones. It also requested exemptions for existing layouts where approach roads are 30 to 40 feet wide, as following the 60-foot road rule mandated by G.O. Ms. 106 would be challenging for older layouts.
Another issue affecting development is the lack of grid roads in growth corridors surrounding the Outer Ring Road (ORR). This is slowing down construction projects in these areas, where one-kilometer growth corridors have been identified on either side of the ORR.
Finally, CREDAI highlighted the increasing demand for farm plots post-COVID, many of which are emerging in conservation zones. It appealed to the government to consider allowing farm plot developments of 1,500 to 2,000 square yards, offering a potential policy shift to accommodate this growing trend.
CREDAI continues to press for government action, hoping that these reforms will reinvigorate Hyderabad’s real estate sector.
Refrence by telengana today
Author : NTNDevelopers Home
