Archive · 10 Aug 2026
Telangana Realty Slump: HYDRAA Actions and Policy Uncertainty Hit Hyderabad
Buying and selling homes in the Indian city of Hyderabad has become very slow.
People who build and sell homes say they have lost 70 per cent of their business.
The slowdown is caused by confusing government rules about land.
A special agency called HYDRAA checks on land and buildings, and people are scared it might take their land.
Because of this fear, many buyers do not want to buy property.
House sales in the city went down by 23 per cent.
Two political parties also keep changing plans about where to build new cities, which confuses everyone.
Fewer tech workers are buying homes because many have lost their jobs.
Builders are asking the government to make clear rules so people feel safe buying homes again.
Realtors in Hyderabad say they have lost 70 per cent of their business owing to poor government policies, a lack of new projects, HYDRAA controversies and Section 22A land prohibitions.
Realtor R Chennakeshavulu said HYDRAA's actions caused 90 per cent of the damage to the city's real estate business.
Home sales in Hyderabad fell by 23 per cent and property registrations dropped year on year, though no crash in sales or slash in market rates has occurred yet.
Political rivalry has hurt the sector: the Congress government focuses on Bharat Future City, while BRS promotes Yadagirigutta and the Hyderabad-Vijayawada Highway and says it would cancel Future City if it returns to power.
IT sector layoffs and unsold flats in high-rise buildings planned from 32 to 70 floors have added to the uncertainty in the market.
Small and medium-size builders are facing a serious financial crisis in adjusting debts, and realtors are urging the government to create confidence among investors.
- Who
- Real estate developers and realtors in Telangana, including R Chennakeshavulu and Kolipaka Kanakaiah, along with the Congress government, HYDRAA and the BRS opposition.
- What
- The real estate business in Hyderabad has slumped, with developers reporting a 70 per cent loss in business and home sales down 23 per cent.
- When
- Not explicitly dated; described as the current situation following the Congress government's assumption of power in 2023.
- Where
- Hyderabad and the state of Telangana, with references to Yadagirigutta, the Hyderabad-Vijayawada Highway, Siddipet, Andhra Pradesh and Amaravati.
- Why
- Uncertainty over government policies on HYDRAA and Section 22A lands, political rivalry over development projects, IT sector layoffs and unsold high-rise flats have weakened buyer confidence.
Government Stance
Realtors and Opposition Stance
Development Priorities
Government Stance
The Congress government is promoting the Bharat Future City project and previously cancelled the Pharma City project after coming to power in 2023.
Realtors and Opposition Stance
BRS leaders say they would cancel the Bharat Future City if they return to power, backing the earlier focus on Yadagirigutta and the Hyderabad-Vijayawada Highway.
Land Regulation and HYDRAA
Government Stance
The government applies HYDRAA oversight and Section 22A prohibitions to regulate land, though realtors say there is no clarity on what it will do with affected properties.
Realtors and Opposition Stance
Realtors say HYDRAA's actions caused 90 per cent of the damage to the real estate business and that uncertainty over such properties makes buyers hesitate to transact.
- Reported business loss
- 70 per cent for developers in Hyderabad
- Decline in home sales
- 23 per cent in Hyderabad
- HYDRAA damage estimate
- 90 per cent of damage, per realtor R Chennakeshavulu
- Land law cited
- Section 22A of the Registration Act, 1908
- High-rise development
- Buildings planned from 32 to 70 floors with unsold flats
- Government in power
- Congress (since 2023; it cancelled Pharma City)
- Opposition project stance
- BRS says it would cancel Bharat Future City if it returns to power
- Market epicentre
- Hyderabad, the centre of Telangana's real estate business