Real Estate Developers Resort to Lotteries to Boost Sales in Mancherial

The real estate sector in Mancherial and the erstwhile Adilabad district has been hit by a prolonged slump, with revenues dipping nearly 15% in 2024 compared to previous years. The Stamps and Registration department reported a significant decline in revenue, from Rs 205 crore in 2023 and Rs 213 crore in 2022 to Rs 174 crore in 2024.

Sales of assets have sharply declined over the past two years, reflecting a challenging market. Real estate developers are under severe financial stress and are adopting various methods to dispose of their properties and overcome losses caused by the fall in sales.

In a new trend, a section of developers has begun luring customers by conducting illegal draws of lots. These schemes are being promoted on social media platforms and through flex posters at junctions and crossroads in towns and mandal centers. For instance, an asset worth Rs 10 lakh is being allotted to a customer through a draw of lots by selling coupons priced between Rs 5,000 and Rs 10,000 each. Winners of such draws are promised house sites or independent houses.

Gullible customers are reportedly falling prey to these schemes, losing money after being attracted by the lure of lucky draws. The police have warned of strict action against developers for duping customers through such draws of lots. They have cautioned the public not to fall prey to unlawful offers and stated that action will be initiated against erring real estate agents if complaints are lodged.

The real estate sector in the erstwhile Adilabad district has been facing a downturn for the past two years. The decline in sales and the adoption of dubious methods to attract buyers have raised concerns about the integrity of the market. Local authorities are urging the public to be vigilant and report any suspicious activities to the police.

Despite these challenges, some developers are exploring legitimate ways to revive the market, such as offering attractive financing options and transparent deals. However, the prevalence of illegal schemes continues to pose a significant risk to both the industry and potential buyers.