- Maram Satish Kumar,
MD- Maram Infra Projects
Telangana’s construction sector, particularly in Hyderabad, is facing growing pressure due to a combination of rising costs, regulatory challenges, and weakening market sentiment, according to industry stakeholders who have called for a coordinated approach to address the crisis.
Industry experts say the current situation is the result of multiple factors that have gradually intensified over the past few years. Escalating land prices, higher construction material costs, soaring labour charges, increased financing expenses, project approval delays, regulatory changes, and a slowdown in homebuyer demand have collectively affected project viability across the state.
One of the key concerns highlighted by developers is the impact of the unlimited Floor Space Index (FSI) policy in certain areas. While the policy was intended to encourage vertical growth, it has also contributed to a sharp rise in land prices driven by future development potential rather than actual market demand. This has made land acquisition increasingly difficult for small and mid-sized developers, while also putting pressure on project feasibility and pricing.
Labour costs have emerged as another major challenge. Skilled workers, including shuttering carpenters, rod benders, masons, painters, electricians, and plumbers, now command significantly higher wages than in previous years. Combined with rising material costs, the increase has pushed up construction expenses on a per-square-foot basis, squeezing developer margins at a time when market conditions remain subdued.
Against this backdrop, industry leaders are advocating the formation of a Joint Action Committee (JAC) comprising senior representatives from all major builders’ and construction associations. The proposed committee would work collectively to identify the sector’s key challenges, compile data-driven assessments, and prepare a comprehensive representation for the state government.
The industry believes that a structured dialogue between government representatives and stakeholders could help address concerns ranging from project approvals and financing issues to policy-related bottlenecks. Developers argue that the construction sector plays a vital role in Telangana’s economy by generating employment, supporting allied industries, and contributing significantly to government revenues through registrations, GST collections, stamp duty, property taxes, and other fees.
Stakeholders warn that a prolonged slowdown would impact not only builders but also sectors such as cement, steel, paints, electricals, plumbing, transportation, banking, finance, architecture, and engineering.
Industry leaders have emphasized that the need of the hour is not criticism but coordination, and not fragmented representations but a united industry voice. They believe that a collaborative approach between the government and industry stakeholders is essential to ensure the long-term sustainability of Hyderabad’s real estate and construction