Section 22-A clouds Hyd's resale property market

Section 22-A of the Registration Act is creating challenges for Hyderabad’s resale property market, with registration delays affecting buyers, sellers and lenders.

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Registration hurdles raise concerns over resale transactions and investor confidence

Property Pulse

Section 22-A of the Registration Act is emerging as a major concern for Hyderabad's real estate market, with registration hurdles increasingly affecting the resale of apartments across the city. Industry stakeholders say even flats developed with valid government approvals are facing delays at the time of registration, creating uncertainty for homebuyers, sellers and lending institutions.

According to market sources, the issue is affecting resale transactions in several key residential markets, including Dilsukhnagar, Manikonda, Kondapur, Miyapur, Narsingi and Gandipet. In many cases, transactions reportedly come to a standstill after banks approve home loans, as objections arise during the final registration process.

Data available on the Integrated Grievance Redressal System (IGRS) indicates that Telangana has around 30.76 lakh entries under Section 22-A. These include government lands, assigned lands, Waqf properties, Endowments lands, Urban Land Ceiling properties and other categories of legally protected or disputed land.

However, industry representatives say some survey numbers covered under these entries also include apartment projects that were developed after obtaining statutory approvals, resulting in registration difficulties during resale.
The impact is being felt most sharply in the secondary housing market.

Buyers are becoming increasingly cautious about paying advance amounts until registration is completed, while sellers face longer transaction cycles and uncertainty over property transfers. Real estate professionals say the situation is affecting market liquidity despite sustained demand for housing.

The issue also comes at a time when Hyderabad continues to attract strong investor interest. The recent revision of market values by the Telangana government and continued infrastructure-led growth have supported the city's real estate expansion.

Market experts, however, caution that prolonged uncertainty in registrations could affect buyer confidence and slow activity in the resale segment. Industry experts emphasise that the objective of Section 22-A is to prevent transactions involving government and legally protected lands.

However, they argue that projects developed with valid approvals from planning authorities and those that have witnessed multiple legal transactions over the years should not face the same level of scrutiny as disputed properties.
To address the issue, experts have recommended creating a separate mechanism for apartments and layouts developed with statutory approvals.

They have suggested treating projects approved by HMDA, HUDA and TG RERA differently from genuinely disputed properties covered under Section 22-A. Among the key recommendations are the establishment of district-level Section 22-A review committees, a time-bound system for resolving objections, fast-track clearance for already registered apartments and a comprehensive digital database that enables buyers, banks and registration authorities to verify the legal status of properties before transactions are completed.

Industry stakeholders believe such measures would reduce uncertainty, improve transparency and restore confidence in Hyderabad's resale market. They also point out that faster resolution would benefit financial institutions by reducing delays in home loan disbursements and property registrations.

According to market observers, the issue has now moved beyond a registration-related concern. It has implications for property liquidity, housing finance, investor confidence and government revenue. A prolonged slowdown in resale transactions could also indirectly influence demand in the primary housing market.

Experts believe the long-term solution lies in strengthening digital land records, improving coordination between departments and establishing a transparent, technology-driven dispute resolution mechanism. A clear distinction between genuinely disputed properties and legally compliant developments, they say, would help protect buyers while preserving Hyderabad's reputation as one of India's leading real estate destinations.

Section 22-A