Telangana Government Attracts Builders to Construct Affordable Flats in Hyderabad

A government program entrusted with the creation of affordable flats in Hyderabad may finally have begun to gain traction. The government program entrusted with building tens of thousands of two bedroom houses in Hyderabad and the 95 state assemblies within the state of Telangana has been reported to be the flagship program of the Chief Minister of Telangana. It has been reported that tenders for almost 42,000 units have been finalized for the current fiscal period.

real estate projects in Hyderabad

Disappointing Past and A Reason to Cheer 

Work on nearly 21,000 houses has already begun while a little more than 1,600 houses have already been constructed. Although the Project is the flagship project of the Chief Minister of the State of Telangana, the progress of the project had thus far been unsatisfactory. However the housing department now has a new reason to cheer because, unlike earlier, contractors now are coming forward to execute projects.

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While officials employed with the housing department have stated that real estate builders in Hyderabad and others across the state are coming forward due to the relaxation of several norms such as free sand for builders and a reduced Earnest Money Deposit. Investigations have revealed that the relaxation of norms are not the primary reason that builders are coming forward to build houses rather, another likely reason that builders are coming forward is that there have been interventions between MLA’s, MLC’s and builders which has led to the execution of work on the projects by builders.

Unattractive Payout by the State to Builders

In the past builders were reluctant to work on the government project because their financial demands were not being met. The financial demands of builders such as being paid by the government at the rate of 1,500 rupees per square foot, for building in Greater Hyderabad, as opposed to the government’s offer price of 1,250 rupees per square foot led builders away from embracing work on such projects. Furthermore demands by builders to be compensated at the rate of 950 rupees per square foot for buildings in rural areas fell short of the government’s offer to pay only 900 rupees per square foot. Yet due to the intervention of elected officials from Telangana such difference seem to have been brushed aside and builders are now coming forward to build houses for the state.

Other Factors Attracting Builders 

Another possible reason that builders are coming forward to undertake such state buildings projects could simply be that builders have hope that if they work on projects for the government today, they stand to benefit when in the future the state government seeks tenders from builders for other more lucrative realestate projects in Hyderabad and the rest of Telangana.

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