HYDRAA Chief Rejects Blame for Hyderabad Real Estate Slowdown, Says Market Needs Structural Correction

Hyderabad, Aug 2026 : HYDRAA Commissioner and IPS officer A.V. Ranganath has rejected claims that the Hyderabad real estate sector is witnessing a slowdown because of the agency’s anti-encroachment operations, attributing the downturn instead to structural weaknesses in the property market, high prices, large unsold inventories and broader economic conditions.

Ranganath said the real estate sector has also slowed in cities such as Delhi, Vijayawada and Karimnagar, where HYDRAA has no role. He attributed the situation in Hyderabad largely to international economic conditions, high interest rates and changing employment patterns, particularly those influenced by artificial intelligence.

According to Ranganath, Hyderabad currently has an estimated 3 lakh to 3.5 lakh unsold flats. He said demand has weakened as property prices have risen sharply while employment patterns are undergoing changes. With prices in several locations ranging between ₹10,000 and ₹15,000 per square foot, he said, properties have become increasingly unaffordable for average and middle-class buyers.

He pointed out that middle-class families are increasingly being required to spend nearly ₹2 crore for a 1,200-square-foot apartment and then remain committed to equated monthly instalments for almost two decades. In his assessment, the market has been in need of a correction for a considerable period.

Ranganath strongly rejected allegations that HYDRAA’s enforcement activities were damaging the property sector. Instead, he said the agency was helping to “redefine real estate” by eliminating illegal practices, protecting public assets and restoring land meant for common use.

He clarified that HYDRAA does not intervene in ordinary civil disputes involving privately owned properties. Its focus, he said, is on protecting government land and land earmarked for public purposes in approved layouts, including roads, parks, schools and hospitals.

According to the commissioner, restoring such common-purpose land is ultimately in the interest of genuine property owners because it protects their rights and preserves essential public infrastructure.

Ranganath said encroachments had created a situation where ordinary property owners often felt powerless to challenge influential individuals. He described the earlier situation as “jungle raj”, alleging that some genuine plot owners were compelled to visit their properties periodically simply to ensure that their land had not been encroached upon or subjected to unauthorised construction.

He claimed that HYDRAA has so far reclaimed approximately 3,350 acres of land valued at around ₹1.5 lakh crore. The agency’s primary objective, he said, is to protect government assets. He also suggested that some reclaimed land could potentially be utilised for housing projects aimed at low-income and middle-income families.

Ranganath explained that HYDRAA was established to coordinate the work of various government departments that previously dealt with encroachment-related matters separately. By bringing these efforts together, he said, the agency has been able to respond more quickly and coordinate action more effectively to protect public assets.

The commissioner also issued a strong warning to prospective homebuyers, urging them not to rely exclusively on builders’ promotional material or legal-vetting certificates while purchasing property.

He compared the process of buying a home to the scrutiny families undertake while considering a marriage proposal. “When arranging a daughter’s marriage, families carefully inquire about the prospective groom’s character and background. Why should we not exercise the same level of diligence when investing crores of rupees in a property?” he asked.

He alleged that in some cases, legal opinions had described disputed properties as “clear” despite unresolved issues. Buyers, therefore, should undertake their own verification rather than depending entirely on documents or assurances provided by developers.

Ranganath identified three important checks that prospective buyers should undertake before purchasing a property. First, they should examine the Hyderabad Metropolitan Development Authority’s lakes map to determine whether the property falls within a lake’s Full Tank Level area or buffer zone.

Second, buyers should compare the property’s location with National Remote Sensing Centre satellite imagery available through the Bhuvan portal to establish whether the land is government-owned.

Third, he recommended conducting local inquiries. Nearby residents, shopkeepers and others familiar with the locality may know about land disputes, encroachments or other problems that may not immediately appear in official records.

Ranganath maintained that HYDRAA’s activities are aimed at Hyderabad’s long-term sustainability rather than short-term gains. He said nearly 61 per cent of the city’s water bodies have already been encroached upon, warning that continued encroachment could eventually contribute to serious water shortages and groundwater contamination.

The agency, he said, is working to restore lakes, protect parks and other public spaces, improve groundwater recharge and reduce the risk of urban flooding. These measures, he argued, are essential for ensuring that Hyderabad remains environmentally sustainable as the city continues to expand.

“We are not here to turn the city into a concrete graveyard,” Ranganath said.

He said HYDRAA’s broader vision was to help transform Hyderabad into a well-planned and environmentally sustainable city comparable to Singapore while protecting public assets, property rights and ecological resources for generations to come.

According to Ranganath, the objective is to ensure that Hyderabad’s land, water bodies and public spaces remain protected not merely for the present generation but for the next 100 to 200 years.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)