Real estate sector is considered as the one of the most employable sector after agriculture. That is why; both Central and State Governments play much emphasis in encouraging this sector with various sops/incentives to encourage the housing/real estate sector by removing various bottlenecks in municipality and building rules thereby giving them an opportunity for additional/fresh investments.
The Telangana Government is no different in giving sops to reality sector for boosting real estate investments in Hyderabad. Off late, the Telangana Government has approved the Fast Track On-line Approval system that would result in the elimination of delays and hassles in getting various approvals from various governmental departments, Municipal Corporation in undertaking construction and real estate activities by builders and construction companies.
The real estate industry in Hyderabad got the best out of the Telangana government in terms of initiatives, when the latter made 23 amendments to the Building Rules-2012 that is expected to improve the ease of doing real estate/construction business in the state of Telangana. The Telangana Government under TRS (Telangana Rashtra Samithi) is the first to respond on several real estate issues that were pending for decades with the government sanctioning six Government orders in one go with reference to all the concerned technical departments.
Some of the incentives taken by the Telangana Government for real estate business in Hyderabad included the following ones-
- Rationalizing and bringing down the city-level infrastructure impact fee.
- Liberalizing the Transferable Development Rights (TDR).
- To collect the shelter fee according to the existing Building Rules.
- Reducing the non-agricultural land assessment (NALA) tax from 9% to 3% in HMDA limits and from 5% to 2% in GHMC limits.
These incentives or initiatives by the Telangana government is expected to encourage the construction of high rise buildings in the city of Hyderabad and in attracting both domestic and international investors to the real estate market of Hyderabad. The other advantages of these incentives especially the changes in TDR rules encourage builders to give away the land adjoining important roads for widening of the roads, would relive the traffic congestion and in ensuring the smooth flow of traffic. In addition, the collection of shelter fees helps the government in making the Hyderabad city slum free and in building houses for Economically Weaker Sections and Low Income Groups.
These incentives are also expected to boost the revenues of urban local bodies and urban development authorities thereby bringing in much revenue to the government coffers. The Building Rules -2012 amendments also include providing for a Uniform buffer strip of 50 meters along the boundary of Musi River in both GHMC and HMDA area as mandatory.
The other remarkable initiative taken by the Telangana government relates to withdrawing of collection of value addition charges of Rs.100 per square meter in the CDA (Cyberabad Development Area) to avoid double taxation. These initiatives taken by the present government is expected to bring in further real estate investments thereby bolstering the reality market of Hyderabad.