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Telangana's flourishing real estate market has encountered a slowdown, underscored by a decrease in property registrations over the past year. Insiders attribute this lull to escalating land prices, increasing property expenses, and the anticipation of imminent assembly elections.
Over the last year, Telangana, especially the region around Hyderabad, had been enjoying an impressive trajectory in its real estate sector, as suggested by numerous surveys. However, the recent downturn, marked by diminished property transactions, presents a contrasting picture.
Despite the dip in transactions, the state government has seen an increased revenue from property registrations compared to the previous year. This paradoxical situation has been attributed to the surge in land values that bolstered the revenue, even with fewer transactions. However, officials have reported a decrease in revenue since the beginning of the current year.
Data from the Registration and Stamps (R&S) Department reveal that property registrations brought in Rs 14,291 crore in the 2022-23 financial year, which is Rs 2,000 crore more than the previous year. Conversely, the total number of registration documents dropped to 19.44 lakh from 19.72 lakh in 2021-22. This decline indicates lessened demand for properties, as confirmed by an official.
The registration data also show a sustained reduction in monthly transactions throughout the year, barring November 2022. This trend was particularly evident over the last three months, with revenues falling compared to the same period in the previous year.
The R&S department's figures show a significant decline in property registrations in the first quarter of this year compared to the same period in 2022. January 2023 witnessed only 1.60 lakh registrations compared to 2.08 lakh the previous year, followed by 1.70 lakh in February, and 1.50 lakh in March. Furthermore, revenue saw a substantial dip of nearly Rs 1,000 crore between January and April this year.
Despite the adverse financial implications, officials from the R&S department remain optimistic about the sector's recovery. They argue that the completion of several large-scale projects commenced over the past two years will likely reinvigorate the market and boost property registrations.
In conclusion, amid escalating costs and election uncertainties, Telangana's real estate sector is experiencing a temporary slowdown. However, with several large projects nearing completion and the inherent resilience of the market, officials and industry insiders maintain a hopeful outlook for a speedy recovery. The next few months will be crucial in determining the sector's trajectory.
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