Realty sector regains momentum in city
Hyderabad: After a gap of two years, the realty sector appears to be on the upswing in Telangana, especially in Hyderabad and Ranga Reddy districts.A spike in property registrations and growth in revenue from that indicates revival of real estate sector.
But the jump in the property registrations are confined only to certain areas and it may take some more time to spread to other parts of Hyderabad metropolitan region. Official sources said the realty sector was experiencing a revival in areas such as Uppal, Ghatkesar (along the Warangal highway), L B Nagar, Kompally, Medchal, Maheshwaram and Shamshabad.
In five months from April to August this year, registrations and stamps (R&S) department has earned Rs 1,392 crore against last year’s revenue Rs 1,016 crore for the same period and the growth over the previous year is about 37. Similarly, both Hyderabad and Ranga Reddy districts too witnessed growth in terms of number of property registrations.
“RR earned Rs 724 crore against its target and previous year’s revenue Rs 493 crore and Hyderabad district registration department got Rs 231 crore against the last year’s revenue Rs 191 crore. We expect that the number of property transactions will go up further in the next few months,” joint inspector general of R&S department Venkata Rajesh told TOI on Tuesday.
Officials and realtors say that there was a slump in real estate activity in the state, especially in Greater Hyderabad, since 2013. “The Centre had announced separate statehood for Telangana in the middle of 2013 and AP Reorganization Act was finally passed in early 2014. As there was uncertainty over the status of Hyderabad, people stopped buying and selling properties in Hyderabad metropolitan region for one year. The trend continued even after formation of a new government in T where people adopted a wait and watch policy. Now, people have regained confidence and started investing in certain areas which have been witnessing rapid growth,” M Vittal Das, a city-based realtor said.
The most sought after areas are Uppal to Ghatkesar along the Warangal highway. Uppal topped the list in number of property registrations. The Uppal sub-registrar office (SRO) has jurisdiction from Uppal, Boduppal, Peerzadiguda, Medipally, Charlapally, Habsiguda, Ramanthapur and Nacharam. Metro rail connectivity from Uppal to other parts of the city also helped in giving a boost to realty sector in the areas.
“We get about 1,100 to 1,200 documents a day and there has been a jump from 20 to 25 in registrations compared to last year. There will be further growth in transactions by 2016,” G Vishnuwardhan Rao, sub-registrar of Uppal,said.
Contrary to this trend, some upmarket areas like Serilingampally have not shown any improvement in property registrations compared to last year. The Serilingampally SRO gets only 10 to 12 documents a day, official sources said.
A decision on revision of government market rates on property registrations has been put off till revival of realty industry. A couple of months ago, the department released the draft for revising market values and that was expected to come into effect from this August. The government, however, put the proposal on hold upon request from city-based realtors, builders as well as from registration authorities as such a move may result in slow down of
registrations and adversely affect the department’s revenue.