The Greater Hyderabad Municipal Corporation (GHMC) is witnessing a notable shift in real estate dynamics, with a surge in high-rise construction projects despite a decline in the issuance of building permits.
This trend underscores changing preferences among investors and homebuyers in the city’s property market. Data from the year 2023-24 indicates a clear preference for high-rise developments, which are increasingly perceived as a safer investment option compared to traditional housing choices. While the overall number of building permissions issued by the GHMC has decreased, the number of high-rise structures, particularly in the residential sector, has shown a significant increase.
However, this surge in high-rise projects has not translated into higher revenue for the GHMC. In fact, the revenue generated from the Town Planning wing has witnessed a substantial decline of about a quarter in the financial year 2023-24 compared to the previous year. The revenue from building permission fees amounted to ₹1,107 crore, which is significantly lower than the ₹1,455 crore generated in the preceding financial year. Despite the decline in overall building permissions issued, the number of high-rise buildings has continued to rise. In the year 2023-24, the GHMC granted permissions for a total of 130 high-rise structures, representing an increase of more than a third compared to the previous year. These high-rise projects include residential, commercial, and institutional developments, indicating a diverse range of investments in vertical real estate ventures. Interestingly, while approvals for instant registrations and approvals for smaller residential plots have decreased, permissions issued through the single-window system for larger structures have seen a marginal increase. This suggests a shift towards larger, more comprehensive development projects in the city’s real estate landscape. The rise in high-rise construction reflects evolving preferences and market dynamics in Hyderabad’s real estate sector. As the city continues to urbanise and grow, stakeholders must adapt to these changing trends to ensure sustainable development and efficient urban planning practices.
