HYDRAA Commissioner and IPS officer A.V. Ranganath has said that the slowdown in Hyderabad’s real estate sector is not linked to the agency’s stringent action against encroachments. He attributed the downturn to structural weaknesses in the market, a substantial inventory of unsold homes, high property prices and broader economic factors.
He advised prospective buyers to exercise extreme caution before investing their lifetime savings in property, saying they should undertake the same level of scrutiny that families typically apply while evaluating a marriage proposal for their daughter.
Pointing out that the real estate sector had also slowed in cities such as Delhi, Vijayawada and Karimnagar, where HYDRAA does not operate, he said the stagnation in Hyderabad was primarily driven by national and global economic conditions rather than the agency’s enforcement measures.
“There are currently around 3 lakh to 3.5 lakh unsold flats in Hyderabad. Changes in employment patterns due to artificial intelligence, along with high interest rates, have weakened demand. Property prices ranging from ₹10,000 to ₹15,000 per square foot are beyond the reach of the average citizen,” said A.V. Ranganath.
He said elevated prices were compelling middle-class families to spend as much as ₹2 crore on a 1,200-square-foot flat and remain burdened with equated monthly instalments for up to 20 years. In his view, a correction in the market had been overdue for a considerable period.
Rejecting allegations that HYDRAA’s enforcement measures were damaging the real estate industry, he said the agency was not dismantling the sector but “redefining real estate” by curbing illegal practices and removing land encroachments.
He described the earlier situation as “jungle raj”, alleging that property owners had been forced to visit their plots once every two months to determine whether the land had been encroached upon or whether unauthorised construction had begun.
According to A.V. Ranganath, HYDRAA has so far reclaimed 3,350 acres of land estimated to be worth approximately ₹1.5 lakh crore. He said the agency’s objective was to safeguard government property and suggested that such reclaimed land could be used for housing projects for low-income and middle-income families.
He also cautioned buyers against relying solely on builders’ marketing brochures or legal-vetting documents provided by developers.
“When arranging a daughter’s marriage, family members make extensive inquiries into the prospective groom’s character and background. Why do we not exercise the same degree of caution when spending crores of rupees on a property?” he asked.
He alleged that some lawyers were issuing “clear” legal reports even for disputed properties and urged buyers to conduct independent, on-the-ground verification before making a purchase.
He advised every buyer to examine three key aspects before acquiring property. First, buyers should consult the Hyderabad Metropolitan Development Authority lakes map to determine whether the plot falls within a lake’s full tank level area or buffer zone. Second, they should verify the land against National Remote Sensing Centre satellite data available through the Bhuvan portal to ensure that it is not government-owned. Third, they should conduct local inquiries, as conversations with residents or people at nearby tea stalls could reveal a history of disputes not reflected in official documents.
The HYDRAA Commissioner said the agency’s actions were not aimed at securing short-term gains but at protecting Hyderabad’s long-term future. He stated that 61 percent of the city’s water bodies had already been encroached upon and warned that continued encroachment could result in severe water scarcity and groundwater contamination.
“We are not here to turn the city into a concrete graveyard,” said A.V. Ranganath.
He said HYDRAA’s objective was to help transform Hyderabad into an orderly and sustainable urban society comparable to Singapore. The agency’s ultimate aim, he added, was to protect property rights and preserve the environment for the next 100 to 200 years.
HYDRAA Is Redefining Real Estate, Not Destroying It, Says Commissioner A.V. Ranganath
