About 250 films are produced in the Telugu film industry every year, but barely 5 percent of them turn out to be hits, while the rest end up as losses. Real estate investments on open plots made by the common man follow a strikingly similar pattern.
Hyderabad real estate is not something new; it is age-old. The stories of those who earned big and made fortunes are widely publicized and discussed. However, there are hundreds and thousands of people who lost their lands due to political encroachments (kabjas), litigations, and, above all, by not seeing any real growth in their investment even after decades.
Real estate brands give a very attractive picture at the time of selling. For example, in a few tens of acres, they show proclaimers leveling the land, plots divided and numbered accordingly, a park area developed with plants and a kind of parnashala, and some internal roads. In short, they physically showcase the layout design. Then they speak about upcoming investments around the area, including companies, road connectivity, flyovers, and other infrastructure. They confidently convince buyers that their investment will be quadrupled in 5–10 years.
Middle-class people rarely stop to ask a basic question; if the developers are so confident of a 400% return in five years, why are they selling the land to the public instead of holding it themselves? This is where ignorance, innocence, and the trap of greed come into play. In reality, maybe one or two out of fifty such ventures may see such rapid appreciation. Those few success stories are highlighted and used as examples to convince buyers.
Among the remaining investors, many feel their land has turned into a dead investment. “I bought land about 10 km from the present ORR in a venture in 2006. After 20 years, technically it became ten times the investment. But if I wish to sell it now, I cannot, because there is no demand in that region. Above all, it is one of 500 plots in the venture. Luckily, the venture is protected by the members by forming a society, building a compound wall, and placing a security guard while collecting maintenance charges from plot owners. The real estate company disappeared after selling the plots until 2010,” said a retired BHEL engineer.
Another retired bank employee shared his experience, “I bought a 400 sq. yard plot in a popular plotting venture in 2002. The ORR passed through a part of our venture, and I thought my plot would also fall under it and be compensated by the government. But it was saved and now lies just 500 meters from the ORR. However, it has been under political encroachment for many years. I cannot sell it, even though the documents are with me and the EC is in my name. Nothing beats political power. Running around courts, hiring lawyers, is cumbersome and expensive, and political power can even influence lawyers. So it has become a dead investment.”
“I bought a property of 267 square yards in a venture in 2008 in the Patancheru region. I also completed the LRS, but it still offered no protection. My land came under the encroachment of a political person, who unilaterally decided the price to buy it. Though the market value was Rs 20,000 per square yard, I was forced to sell it for only Rs 6,000 per square yard—and that too to the same person", said a retired lecturer.
He continued, "Whoever intends to fight legally ends up nowhere. We even brought the media into our venture once, also brought opposition party leaders a few years ago (not revealed the party names and who is in power that time), exposing the political encroachment, but it was of no use. The media personnel were threatened, and eventually even the channel owner succumbed to political pressure".
He concluded, "So, neither the media nor the legal system truly stands with the common man. Even when they try to help, they are unable to challenge the overwhelming power on the opposite side".
Now, once again, ventures are coming up around the proposed RRR. Some popular brands are publicizing that those who missed investing near the ORR should not miss this opportunity. Yes, it sounds tempting. But the real question is, how many people actually earned big by buying small pieces of land close to the ORR? Those who earned are showcased as examples, while those who lost are kept in the dark.
Such ventures may work even near the proposed RRR, but everything is time-tested. Nothing is as assured as the value of gold. Those who buy land in acres, with strong judicial backing and deep knowledge of real estate procedures, can play the game well and grow into real estate barons. The innocent middle class, however, often ends up as pawns in that game.
At the end of the day, middle-class people invest in small pieces of land using their hard-earned money and retirement savings, hoping to upgrade their lives and secure their future. But not everyone is lucky in this game. Land appreciation often depends on luck. The government should ensure that only clear-title, litigation-free lands reach middle-class buyers and that they are protected from political encroachments.
For such a system to exist, registrations must happen with utmost transparency. Everything should be digitized and available online. Any legal cases on land should be clearly visible in the system, making it fully transparent and reliable.