Realty sector: Bloom in Telangana, gloom in AP


When AP and Telangana were carved into two new states, there were fears that the real estate sector in Telangana would nosedive and there were hopes that the realty sector in AP would vroom on the fast lane. But, seven years after the bifurcation, the exact reverse is happening. The realty sector in AP is hitting the rock bottom.

This can be understood from the spike in the land registrations in Telangana and the plummeting of land deals in AP.  The T government is likely to get up to Rs 10000 crore revenue this year from land registrations. In the first week of January itself, Telangana has got a revenue of Rs7759 crore. In December, the revenue was Rs 1118 crore. Realty sector experts say that the revenue would only increase from now.

On the other hand, the political situation in AP is turning out to be the biggest disincentive. With the situation in Telangana favorable, the realtors are shifting their focus away from AP. The confusion over the capital has also contributed in a big way to the realty bust in AP. In Telangana, the demand for agricultural lands is also growing. Increasing trend of weekend farming among the IT sector employees is also helping the realty sector.

In April last year, the agricultural land registrations had fetched a revenue of Rs 617 crore, In May 2021, it came down to 148 crore due to Covid situation. But, from June onwards, the revenue started looking up. Sources say that the rulers in AP must take steps to prevent the flight of the capital to AP and also promote the realty in AP. After all, revenue from realty is the main source of income in AP. 

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