Have land prices run ahead of reality?

Property Pulse

The Telangana government’s ambitious Future City project is expected to become one of the state’s biggest urban development corridors over the coming years. Major infrastructure works, including the proposed Greenfield Road corridor toward Amangal, are already progressing rapidly.

However, despite the aggressive infrastructure push and growing publicity around Future City, real estate activity in several surrounding regions has not accelerated as expected.

Ground-level trends indicate that land registrations and plot sales continue to remain relatively subdued across multiple emerging corridors.

According to information gathered from local registration offices, Amangal is reportedly witnessing only around five to six land registrations per day, suggesting that the large-scale development narrative has not yet fully translated into sustained market momentum.

Real estate observers say one of the biggest reasons could be the sharp and sudden rise in land prices across several locations surrounding proposed infrastructure projects.

Following government announcements and road development activity, many farmers and landowners are reportedly increasing prices aggressively in anticipation of future appreciation.

However, buyers appear increasingly reluctant to enter the market at elevated rates without visible commercial activity, stronger connectivity or immediate development on the ground.

Industry experts believe the market may currently be facing a “pricing ahead of growth” situation where land values are rising faster than actual absorption capacity.

In some areas such as Manasanpally near Maheshwaram, market sources indicate that land prices have remained largely flat compared to January and February despite infrastructure announcements.

Similar trends are reportedly visible in locations such as Zaheerabad, Sadashivpet, Ghatkesar and Aler, where plot sales activity has slowed and buyer enquiries have weakened.

Real estate consultant P. Devaraj said political uncertainty and weak buyer confidence are also affecting the plotted development market in several regions.

He noted that many landowners are currently selling only smaller portions when liquidity is required rather than completely exiting holdings.

Market observers say investors are now becoming more cautious and selective, preferring locations where infrastructure execution, employment generation and population growth are already visible instead of purely speculative future growth stories.

Experts believe long-term growth potential around Future City and emerging infrastructure corridors remains strong, but realistic pricing and gradual appreciation may be necessary to revive broader buyer participation.

MARKET SIGNS
• Registrations remain muted around Future City belt.
• Amangal reportedly seeing only 5–6 registrations daily.
• Sudden land price hikes affecting buyer sentiment.
• Plot sales slowing in multiple emerging corridors.
• Buyers becoming cautious toward speculative pricing.
• Experts call for realistic and gradual appreciation.