Hyderabad: The real estate sector has been booming in Telangana State as people prefer to invest in property rather than deposit it in banks.
This trend of investing in property surged in the past three months, especially after the PNB scam which was followed by a series of other bank scams.
The Telangana stamps and registrations department, which used to earn revenue of Rs 300 crore per month on an average through property registrations, has registered an increase to nearly Rs 450 crore in the previous three months.
Property registrations earned Rs 2,531 crore in 2014-15, and Rs 3,096 crore in 2015-16 and Rs 4,222 crore in 2017-18. The demonetisation of higher value currency notes and now the bank scams have pushed people to consider investments in property as a safer option than depositing money in bank schemes.
The largest property registrations were in districts surrounding Hyderabad and the new district headquarters created in October 2016.
Demonetisation and the impact of the new Goods & Services Tax (GST) impacted the real estate sector too in 2016-17, but still, the revenue earned by the state government through property registration increased.
In 2016-17, the revenues increased to Rs 3,529 crore and in 2017-18, which ended recently on March 31, the revenues further increased to Rs 4,222 crore, which is an all-time high record in Telangana for any financial year.
On the other hand, withdrawals from banks have increased significantly in the past few months, making cash scarce in all banks and ATMs across the state.
“We have never seen such a huge property boom in Telangana before. Huge property transactions are witnessed especially in Hyderabad, Ranga Reddy,
Karimnagar and Warangal districts. People vie to purchase lands in villages surrounding urban areas and plots in cities and towns. This trend is seen more in areas surrounding new district headquarters,” said C. Shekar Reddy, a builder and former national president CREDAI.
The mad rush for property investments in new district headquarters can be gauged by the fact that a plot in Peddapalli district headquarters fetched Rs 1.10 lakh per sq yard, which is significantly more than the IT corridor in Hyderabad.
Builders expect property prices to boom as elections approach and huge amounts of money circulate during election time.
