Telangana Real Estate Sector Struggles as Registration Revenue Plummets

The real estate sector in Telangana continues to remain under pressure, with revenue collection data from the Registration and Stamps Department pointing to a steady decline. This trend has raised concerns among developers and policymakers, who cite multiple factors contributing to the slump.

The department’s revenue collection was Rs 14,588.06 crore in 2023–24. This 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. With current trends, meeting the target appears unlikely.

Despite the slowdown, the department has set a higher target of Rs 16,021 crore for 2026–27. The sector has struggled to recover since the Congress government assumed office. Developers and builders cite multiple factors behind the continued slump.

They point to global uncertainties, including geopolitical tensions, concerns in the IT sector, and a broader economic slowdown. Some in the industry say international developments, particularly in West Asia, have added to caution among buyers. NRIs and corporate employees are adopting a wait-and-watch approach, which has affected inquiries, a CREDAI member said.

This trend has persisted over the past few months. Developers also say certain policy decisions by the State government have influenced buyer sentiment. While the government has defended its stance on projects like Pharma City and actions such as HYDRAA demolitions, industry players say these moves have raised concerns among 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 significant contributor to the state's economy, and the ongoing slump has far-reaching implications. The government and industry stakeholders are exploring various measures to revive the sector, including policy reforms and incentives to boost buyer confidence and stimulate demand.

However, the road to recovery is expected to be gradual, and the sector will need sustained efforts to regain its momentum. For now, developers are focusing on cost optimization and strategic planning to navigate the challenging market conditions.

In the meantime, the Registration and Stamps Department remains committed to meeting its revenue targets, despite the current challenges. The department is exploring new avenues for revenue generation and is working closely with industry players to address their concerns and revive the sector.

The real estate sector's performance in the coming months will be closely watched by all stakeholders, as it will provide insights into the overall economic health of the state. The government's response and the industry's adaptability will play crucial roles in determining the sector's future trajectory.