AP Real Estate Takes Severe Beating Under CBN-led Coalition Rule

The real estate sector in West Godavari district has taken a severe hit. For the past year, property transactions have drastically declined, making it difficult for the Registration Department to meet its revenue targets. Ironically, the situation has worsened under the current coalition government—even more so than during the peak of the COVID-19 pandemic. The government's indiscriminate hike in registration charges has only deepened the crisis in this sector.

With increasing numbers of people moving to urban areas for their children's education, employment, or business opportunities, there was once strong demand for permanent housing. Nearly 2,000 real estate layouts sprang up across towns, mandal headquarters, and nearby villages in the district. Apartment complexes began mushrooming, and sub-registrar offices buzzed with activity for years, thanks to the booming market of land and flat sales.

Between 2019 and 2024, the real estate sector enjoyed a golden period. The previous government’s support in education and healthcare helped reduce living costs. Welfare schemes were implemented in a way that boosted incomes across all segments of society. The rise in employment and livelihood opportunities, combined with subsidies and incentives for agriculture and small to medium enterprises, improved living standards and stimulated real estate investments. For five consecutive years, revenue from the Registration Department never fell below 70% of the target—even during the pandemic years of 2020 and 2021, when it still reached between 76% and 95%.

Real Estate in Decline Under Coalition Rule

The coalition government's tenure has seen the real estate sector collapse. In some areas, ventures and apartment projects from previous years have been unfairly targeted by coalition leaders, likened to vultures preying on the industry. Acts of political vendetta have only added to the turmoil.

Heavy rains, floods, and exploitation by middlemen have devastated early crops, while disappointing prices have discouraged aquaculture farmers. The sidelining of welfare schemes has left people cash-strapped, significantly slowing money circulation in the market. As a result, even during festive seasons like Dussehra, Diwali, Christmas, Sankranti, and Ramzan, retail sectors like readymade garments, groceries, gold, fancy goods, and home needs have seen barely half the usual business.

Real estate sales have slumped. Those who invested heavily by taking loans to start ventures are now facing an uncertain future, with no buyers in sight. Even people wanting to sell small properties for essential needs like education or weddings are struggling to find buyers. Previously, agents who could sell two or three plots a month are now unable to close even a single deal in recent months.

Plummeting Revenues

In an unprecedented decline, the Registration Department achieved only 63% of its revenue target in the last financial year. Since February this year, land values have been increased by 10% to 40%, further impacting an already fragile real estate sector.

Last year, during February and March, the government earned ₹67.7 crore from 17,394 registrations. This year, for the same period, only ₹58.07 crore was generated from 15,645 registrations. Experts believe that the significant hike in registration charges, along with a shift in public interest toward buying gold instead of property, has contributed to the sharp decline in registrations.