Before the Congress government came to power, the construction sector in Hyderabad was enjoying its best phase ever. Real estate experts have predicted that the same situation will continue even after the formation of the Congress government. However, the Congress government has taken a different stand regarding the real estate sector. The Revanth Reddy-led government seems to feel strongly that there were irregularities related to permits during the previous government’s tenure. Hence, it has completely stopped the approval of new multi-story buildings, skyscrapers, and luxury villa projects in Hyderabad. As the permits for new construction have not been received since last December, some developers are in trouble as they do not understand what to do next. As a result, it can be said that new projects have not started in the Hyderabad real estate market in the last four months.
Many developers from the city have planned to start new projects in December or January. Some builders also prepare architectural designs simultaneously. All of them thought that no matter which government came to power, the permits would not be put on hold. But the GHMC and HMDA officials were shocked by the arrest of former HMDA director Balakrishna. As the state government has also said to withhold permissions for new skyscrapers and luxury villas, we have reached a point where even building committees have not been formed. All in all, if the national real estate market is booming, the real estate sector in Hyderabad is going down the lane. Realty experts also agree that the main reason for this is the non-granting of permissions for new projects.
At least Rs. 1500 crore in income!
The Congress government feels that the previous government in Hyderabad has granted permission for more skyscrapers than it was supposed to. Hence, the news of the suspension of new permits is heard everywhere. If the same is true, many developers want to study where permissions are given more and if they can be granted in other areas instead of those areas. They say that if the previous government did not follow the rules and did not give permissions, then at least this time everything can be looked at and given permissions. In all, around a hundred projects around Hyderabad are awaiting clearances, say experts. For each high-rise permission, builders pay about one and a half crores as construction fees for around one lakh square feet. Each builder pays fifteen crores to GHMCs or HMDAs to develop ten lakh square feet of land. It is reported that around 100 projects are waiting for permission under GHCM and HMDA. By granting these permits, the government treasury can get income up to Rs 1500 crore. And why would the government give up so much revenue?
Are MP elections the reason?
CM Revanth Reddy, who is fully aware of the construction sector in Hyderabad, is not focusing on the real sector. Some builders think that because of the MP elections, no one cares much about real estate. However, the real estate industry is demanding that the Revanth government properly allow the new construction so that the real estate sector does not become bleak.
