Hyderabad’s real estate market is experiencing turmoil due to Telangana’s new Land Regularization Scheme (LRS) rules, which have expanded buffer zones around urban water bodies from 30-50 meters to 200 meters. This sudden change has left many plot owners in crisis, as they must now obtain new No Objection Certificates (NOCs), while market values for properties near water bodies have plummeted. Delays in NOC approvals and heightened scrutiny further complicate transactions. The revised regulations have intensified the sector’s stagnation, prompting concerns over long-term property devaluation and investor confidence amid ongoing scrutiny of the government’s motives.
The real estate market in Hyderabad is undergoing significant upheaval as Telangana’s New LRS Rules implement 200-Meter Buffer Zones around urban water bodies through the Land Regularization Scheme (LRS). These updated regulations have increased the size of restricted areas from an initial range of 30-50 meters to a staggering 200 meters, plunging countless plot owners into a state of distress and worsening the stagnation in the sector.
What are the New LRS Rules Regarding 200-Meter Buffer Zones?
- Expansion of Buffer Zones: Areas off-limits around lakes, rivers, and various water bodies have now expanded to 200 meters (656 feet), a significant increase from the previous 30-50 meters.
- New NOC Requirement: Plot owners are required to secure new No Objection Certificates (NOCs) from the Revenue and Irrigation departments, rendering older approvals void.
- 25% Rebate with Conditions: Authorities encourage applicants to pay LRS fees upfront to qualify for a rebate on open-space fees, although the scrutiny surrounding this process has intensified.
Also Read: Telangana’s Call Center for LRS: Essential Information to Consider Before March 31
Why Are Plot Owners in Distress?
The abrupt change in regulations has caught landowners off guard. Previously, NOCs from state departments sufficed for property transactions. However, the situation escalated after the Hyderabad Metropolitan Development Authority (HMDA) demolished illegal structures near Katwa Cheruvu and other water bodies, prompting the government to tighten regulations further.
- Decreased Market Value: Properties located within 200 meters of water bodies are now labeled as “controversial,” which has discouraged buyers and reduced land values.
- Delays in NOC Issuance: Personnel shortages in the Revenue and Irrigation departments could lengthen the NOC approval timeline, complicating property sales and development endeavors.
- Questionable Intentions: Critics voice concerns regarding the sudden policy change, speculating that financial motivations may be behind it amid a state treasury deficit.
Also Read: Telangana Government Clarifies Regulations for the Layout Regularisation Scheme (LRS)
GO 168 vs. New Regulations: A Notable Difference
The existing regulations under GO 168 (2012) outlined buffer zones as follows:
- 9 meters for ponds or lakes under 10 hectares.
- 30 meters for larger water bodies.
- 50 meters for urban rivers.
The introduction of a 200-meter buffer zone—an increase of 566%—has disrupted these previous standards, causing investors to question its practicality.
The Real Estate Sector Prepares for Consequences
The property market in Hyderabad, already burdened by low demand, is poised for even more significant setbacks:
- Stalled Transactions: Prospective buyers are steering clear of plots adjacent to water bodies due to legal uncertainties.
- Challenges for Agents: Brokers who depend on commissions from small plots are seeing their incomes dwindle.
- Project Delays: Developers are halting projects in anticipation of greater clarity, leading to potential job losses.
What Lies Ahead for Plot Owners?
While officials indicate that plots outside Full Tank Level (FTL) and buffer zones will be regularized following evaluations, stakeholders are calling for greater transparency. Industry experts caution that without changes to the current policies, the real estate scene in Hyderabad might face:
- Prolonged depreciation of properties near lakes.
- Legal disputes over contested land titles.
- A decline in investor trust.
The revised LRS guidelines issued by the Telangana government have cast a shadow of uncertainty over Hyderabad’s real estate landscape. With buffer zones now extending to a quarter-kilometer and a rise in NOC complications, both plot owners and agents are preparing for more challenging times. As the Congress-led government strives to enhance revenue, the implications of these policies on individuals and the economy remain under scrutiny. For the time being, the sector’s recovery is contingent upon clear policies and constructive engagement with stakeholders.
| Reported by Munsif