Fri Mar 07 08:00:00 UTC 2025: ## Hyderabad Real Estate Roiled by Expanded Buffer Zones Around Water Bodies
**Hyderabad, India** – Telangana’s new Land Regularization Scheme (LRS) rules have sent shockwaves through Hyderabad’s already struggling real estate market. The government’s decision to expand buffer zones around urban water bodies from 30-50 meters to a massive 200 meters has rendered thousands of plots ineligible for regularization, causing widespread uncertainty and frustration.
The seven-fold increase in the buffer zone size, implemented under the revised LRS guidelines, has blindsided landowners who previously relied on No Objection Certificates (NOCs) from state departments for property transactions. The move follows recent demolitions of illegal structures near water bodies like Katwa Cheruvu by the Hyderabad Metropolitan Development Authority (HMDA), indicating a stricter enforcement of environmental regulations.
Real estate experts warn that this sudden and significant change, increasing the restricted area by 566%, will severely hamper the sector’s already sluggish recovery. While the government assures that plots outside the newly defined 200-meter buffer zones and Flood Line (FTL) will be considered for regularization after scrutiny, a lack of transparency and clear guidelines has created widespread anxiety among investors and landowners.
The situation is further complicated by the added bureaucratic hurdles associated with obtaining the necessary NOCs. The increased restrictions are raising concerns about the feasibility of development projects and impacting property values. Industry stakeholders are demanding greater clarity and dialogue with the Telangana government, warning of potentially devastating consequences for the Hyderabad real estate market if policy revisions aren’t forthcoming. The impact of these measures on both the economy and the livelihoods of those affected remains a key concern as the Congress government seeks to boost revenue through the LRS.
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