Telangana 22-A Overhang May Keep Hyderabad Rentals Firm

Telangana 22-A Overhang May Keep Hyderabad Rentals Firm: The latest market read

Telangana 22-A Overhang May Keep Hyderabad Rentals Firm because a large pool of prohibited properties is making buyers slow down, verify harder, and in many cases stay on rent for one more year. The current Section 22-A prohibited property count stands at 147,934 properties. That is not a small technical entry in a government list. It affects buyer confidence, especially in land-heavy belts around Hyderabad where survey number clarity, pahani entries, Dharani status and SRO-level registration eligibility decide whether a deal can actually close.

The immediate impact is not that 22-A directly increases rent. It does not. But when a family postpones a plot purchase in Mokila, a villa decision in Tellapur, or an apartment registration near Manikonda because the land chain needs checking, they usually continue renting. That extra rental demand, added to steady IT hiring and limited ready-to-move supply in good communities, can keep rents firm in Hyderabad’s active corridors.

In our experience, the rental market reacts not only to salaries and office openings, but also to buyer hesitation. When ownership decisions are delayed, good rental flats get absorbed faster.

Why Telangana 22-A Overhang May Keep Hyderabad Rentals Firm in 2026

Section 22-A of the Registration Act is meant to stop registration of certain prohibited properties, including government lands, assigned lands, endowment lands, waqf lands and other notified categories. For a buyer, the issue is simple: if a property is in the prohibited list, the SRO may refuse registration. Even when the property is ultimately clean, the time needed to verify the survey number, check Dharani, inspect old pahani records and obtain legal opinion can stretch the buying cycle.

That delay is now visible in conversations across Hyderabad’s growth belt. In Serilingampally mandal, buyers looking at Gachibowli, Kondapur and Nallagandla are not only asking about carpet area and amenities. They are asking for RERA details, link documents, EC, land conversion and whether the project land has any 22-A shadow. In Gandipet and Shankarpally mandals, plot buyers are going one layer deeper: survey number, sub-division, village map, layout approval and mutation trail.

For a quick first check, many buyers now use a Section 22-A Prohibited Property Check before even visiting the site. We’ve seen this behaviour increase sharply among NRIs and salaried buyers who cannot afford a blocked registration after paying advance.

Telangana 22-A Overhang May Keep Hyderabad Rentals Firm in these Hyderabad pockets

The rental support is likely to be stronger in localities where purchase decisions are expensive and verification takes time. West Hyderabad is the first name here, but the trend is not limited to one side of the city.

In apartment purchases, market quotes are still firm in many micro-markets. Gachibowli and Madhapur premium projects often quote around ₹10,000–₹15,000 per sq ft, Kokapet and Neopolis-side projects are commonly discussed in the ₹9,000–₹13,000 per sq ft band, while Miyapur and Bachupally see many options around ₹6,000–₹8,500 per sq ft depending on builder, stage and amenities. When the purchase ticket is ₹90 lakh to ₹2.5 crore, even a small doubt on title makes families pause.

Plot markets show the same caution. In Mokila and Shankarpally, HMDA layout plot quotes can vary widely, roughly ₹30,000–₹90,000 per sq yd depending on exact location, road width and approval status. Around Tukkuguda and Maheshwaram, buyers compare ORR access, airport proximity, zoning and future industrial demand. But before payment, the question is always the same: is the survey number clean?

The 147,934 prohibited properties figure is a confidence issue

The number 147,934 matters because property buying is built on trust. A buyer does not need their exact flat to be listed under 22-A to become cautious. News of a large prohibited property count pushes the entire market towards slower verification. That is healthy from a legal point of view, but it can temporarily shift demand from ownership to renting.

Hyderabad’s rental market is already helped by three practical factors. First, many offices in HITEC City, Raidurg, Gachibowli and Nanakramguda have moved from fully remote to hybrid or regular attendance. Second, ready-to-move gated communities in preferred school zones are limited. Third, home loan EMIs at current property prices are much higher than rent for many families, especially in west Hyderabad.

For example, a ₹1.4 crore apartment may mean an EMI above ₹1 lakh depending on loan size and tenure. The same family may rent a good 3BHK in Nallagandla, Kondapur or Manikonda for ₹45,000–₹75,000. If title verification is pending, renting for another 12 months feels sensible.

What buyers are checking before they stop renting

Earlier, many buyers were satisfied with an EC and a builder brochure. That is no longer enough. Serious buyers now check the SRO, survey number, Dharani status, guideline value, RERA registration, mortgage entries and layout permissions. This is the right approach.

• Use the Encumbrance Certificate Search to check registered transactions and loans on the property.
• Check the official market value using the Market Value / Guideline Value Search. This helps compare the ready reckoner value with the actual market quote.
• For new projects, verify registration using the RERA Project Lookup.
• Identify the correct registration office through Find Your SRO Office, especially for villages on Hyderabad’s edges.
• For land deals, run a survey-level check through the Survey Number Finder and then do a deeper Property Verification Tool review.
• Before budgeting, calculate registration costs using the Stamp Duty Calculator.

In our view, this verification culture is overdue. Hyderabad has seen fast growth across mandals like Gandipet, Shankarpally, Rajendranagar, Shamshabad, Medchal, Quthbullapur, Hayathnagar and Maheshwaram. Fast growth brings genuine projects, but also confusion around old records, assigned land history, village boundaries and layout claims.

Impact on landlords, tenants and builders

For landlords

Landlords in well-managed societies may have more room to hold rents, especially near offices, schools and metro corridors. A furnished 2BHK in Kondapur or Gachibowli with power backup, parking and clubhouse access is still easier to lease than an old standalone flat with poor maintenance. Quality matters.

For tenants

Tenants should not assume rents will crash just because new supply is coming. If many buyers stay on rent due to 22-A caution, the better flats will continue to move quickly. Negotiate on painting, maintenance, lock-in period and deposit, not only on rent. In Hyderabad, deposits of two months are common, but premium gated communities sometimes ask for more.

For builders and sellers

Builders with clean documentation can actually benefit. If the project has clear title, RERA registration, approved plans, correct land use and no prohibited property issue, the sales team should present documents upfront. In a cautious market, transparency becomes a selling point. Sellers of resale flats should keep EC, link documents, property tax receipts, occupancy certificate and society NOC ready before listing.

My market view: Rentals firm, but not runaway

I do not expect Hyderabad rents to rise blindly across every locality. Tenants have become value-conscious. If a landlord quotes Madhapur rent for a poorly maintained flat in a weaker pocket, it will sit vacant. But in good communities across Financial District, Gachibowli, Kondapur, Nallagandla, Tellapur, Kukatpally, Miyapur, Uppal and LB Nagar, demand should remain steady.

The 22-A overhang is one more support factor. It does not replace job growth, infrastructure or affordability. But with 147,934 prohibited properties in the background, cautious buyers will take time. Some will renew leases. Some will rent near their child’s school while legal checks continue. Some NRIs will delay purchase until their local lawyer clears every survey entry. All these small decisions add up in the rental market.

For buyers, the message is not to panic. Many properties are perfectly clean. The practical step is to verify before paying a large token advance. For tenants, plan early if your lease ends during the school admission or IT joining season. For landlords, keep your paperwork and flat condition in order. Hyderabad rewards clean assets, whether for sale or rent.