Telangana Real Estate Sector Struggles as Registration Revenue Plummets

The real estate sector in Telangana continues to face significant pressure, with revenue collection data from the Registration and Stamps Department indicating a steady decline. Developers and industry experts cite multiple factors behind the ongoing slump, including global uncertainties, policy concerns, and a cautious buyer sentiment.

The department’s revenue collection was Rs 14,588.06 crore in 2023–24, which fell to Rs 14,214.42 crore in 2024–25. In 2025–26, revenue stood at Rs 12,443.64 crore till January 31, 2026. Collections improved in February, taking the total to Rs 13,775.51 crore. The department had projected revenue collection of around Rs 15,200 crore for the full financial year, but current trends suggest that meeting this target is unlikely.

Despite the slowdown, the department has set an ambitious target of Rs 16,021 crore for 2026–27. The sector has struggled to recover since the Congress government assumed office. Developers and builders attribute the continued slump to various factors, including geopolitical tensions, concerns in the IT sector, and a broader economic slowdown.

Some industry players highlight that international developments, particularly in West Asia, have added to the caution among buyers. NRIs and corporate employees are adopting a wait-and-watch approach, which has affected inquiries and sales. This trend has persisted over the past few months, and developers also point to certain policy decisions by the State government that have influenced buyer sentiment.

While the government has defended its stance on projects like Pharma City and actions such as HYDRAA demolitions, industry players argue that these moves have raised concerns among potential buyers. Even minor doubts can slow sales and make it harder to rebuild confidence. As a result, unsold inventory continues to rise, a developer noted, adding that things could improve in the current fiscal.

The real estate sector in Telangana is a crucial component of the state’s economy, and the ongoing challenges are a cause for concern. Developers and policymakers must work together to address the underlying issues and revive the sector. The government’s efforts to boost the economy and improve investor confidence will be crucial in this regard.