The Telangana government’s plan to revise land rates for property registrations from January 1, 2025, may bring immediate revenue, but it will likely impose a heavy burden on the common man. Aimed at generating ₹1,500 to ₹2,000 crore in additional revenue the current financial year, the move is justified as bridging the gap between official rates and market values. However, it risks making housing even more unaffordable.
Once known for affordable housing, Hyderabad is now one of India’s costliest real estate markets. In areas like Jubilee Hills and Hitech City, land prices have surged past ₹1 lakh per square yard, putting land ownership beyond the reach of the middle class. The proposed hike in land rates will ripple through the city, driving up property prices even in suburban areas that attract first-time buyers. Tenants, too, will feel the pinch as rents rise, forcing many to overstretch budgets or move to far-flung areas.
The price of progress
Hyderabad’s growth, fuelled by its booming IT sector and infrastructure, has not translated into equitable opportunities for its residents. The government’s frequent tweaks to land rates are widening the gap between income groups, making the city increasingly unaffordable for the middle and lower-income classes.
While officials justify the hike as essential for funding welfare schemes, this short-term solution overlooks sustainable economic strategies. Burdening middle-class families who aspire to own homes or find affordable rentals will only deepen social inequities.
An uneven playing field
Hyderabad’s transformation into a global business hub has come at a steep price. It has overtaken Bengaluru and Mumbai in premium real estate prices, with Jubilee Hills now ranking among the most expensive residential areas in the country. Globally, property rates per square yard in Hyderabad rival or exceed those of several international cities. This surge highlights the city’s growing prominence but raises concerns about its exclusivity.
Alternative solutions
Instead of relying on land rates for revenue, the government should explore more inclusive approaches. Encouraging industrial growth can create jobs and generate steady tax revenue. Investing in agricultural productivity can uplift rural incomes and strengthen the state economy. Additionally, cutting back on unsustainable welfare schemes that strain public resources could free funds for meaningful infrastructure and development projects.
Revising land rates may plug short-term revenue gaps but risks alienating those who drive the state’s economy. Sustainable, inclusive policies are essential to balance economic growth with affordability. Only then can Hyderabad remain a global hub that’s livable for all.
A call for sustainable reforms
The Revanth Reddy-led government must look beyond quick fixes and focus on innovation, reforms, and building an inclusive economy. Anything less will perpetuate inequity and disillusionment among its citizens.
By recalibrating priorities and adopting holistic economic strategies, Telangana can pave the way for a balanced and prosperous future. For now, however, its revenue policies seem headed in the wrong direction.
