Is the Telangana Government Set to Shake Up Hyderabad’s Real Estate Sector Again?
The Hyderabad real estate sector may soon face another significant shift. With the construction industry already facing challenges, there are growing concerns about an impending change that could further impact builders and developers. Reports suggest that the Telangana government is considering imposing restrictions on unlimited Floor Space Index (FSI). This has sparked a debate among stakeholders, with opinions divided on whether such a move would help or harm the city’s growth.
The FSI Debate: Divided Opinions
On one side, proponents of FSI restrictions argue that controlling excessive construction is essential to maintaining Hyderabad’s urban planning and infrastructure stability. On the other side, critics believe that imposing FSI restrictions will strip Hyderabad of its unique architectural freedom and hinder its rapid development.
A Possible Solution: Revoking GO No. 50
Instead of introducing new FSI restrictions, many experts are calling for the revocation of GO No. 50, which was introduced by K.T. Rama Rao (KTR) in 2019. Understanding the evolution of FSI rules offers insights into why this move might be beneficial.
The Evolution of FSI Regulations in Hyderabad
In 2006, during the late Chief Minister Y.S. Rajasekhara Reddy’s tenure, the Telangana government introduced GO No. 86, which allowed unlimited FSI. Although this appeared to encourage high-rise constructions, an amendment in 2012 added a crucial condition: buildings exceeding 55 meters in height were required to maintain a setback of 0.5 meters for every additional 5 meters. This regulation effectively restricted high-rise construction, as most developers found the setback requirement impractical. Consequently, only a few developers dared to build structures taller than 20 floors.
In 2019, the BRS government made a significant amendment by eliminating the additional 0.5-meter setback requirement for buildings above 55 meters. This change was prompted by requests from a Hyderabad construction association. The result? A construction boom where developers maximized their land use. Projects that previously yielded around 1.5 lakh square feet per acre suddenly scaled up to 4-5 lakh square feet, with some even reaching 6 lakh square feet.
Why Are Developers Pushing to Revoke GO No. 50?
Given the surge in large-scale constructions, developers now argue that revoking GO No. 50 would stabilize the market and ensure better urban planning. Organizations like Naredco Telangana have already submitted petitions urging the government to reconsider the 2019 amendments.
What Lies Ahead?
The ball is now in the Telangana government’s court. Whether they impose new FSI restrictions or revoke GO No. 50, the outcome will undoubtedly have a lasting impact on Hyderabad’s real estate landscape. Builders, investors, and homeowners alike are eagerly watching to see how this unfolding development will shape the city’s future.
