Construction sector posts 12% growth, adds ₹80,000 crore to Telangana GSDP

Hyderabad: Telangana’s construction sector grew by 11.97% in FY 2024–25, contributing over ₹80,000 crore to the state’s economy, Minister for IT and Industries Duddilla Sridhar Babu said on Sunday.

Speaking at the 15th NAREDCO Telangana Property Show held at HITEX, the Minister said the real estate and professional services sectors together achieved a 15.4% growth rate. Combined, they accounted for 24.9% of the state’s services GSDP.

Sridhar Babu highlighted that the construction industry alone added more than ₹80,000 crore, reflecting its vital role in economic growth. He noted a sharp increase in housing registrations across Hyderabad, Rangareddy, and Medchal–Malkajgiri districts.

In September 2024, 6,612 housing units worth ₹4,804 crore were registered in these areas. This marked a 35% increase in volume and a 70% rise in transaction value compared to September 2023.

Construction sector growth fuels Telangana’s economic expansion

The Minister said the surge in high-value transactions disproved claims of a real estate slowdown. Registrations for properties priced above ₹1 crore rose by 151%, accounting for 53% of the total transaction value that month.

He described real estate as the second-largest employment provider in India after agriculture. While it currently contributes 6–8% to India’s GDP, he said the sector must grow further to reach global benchmarks of 10–15% in developed countries and 23–25% in China.

Sridhar Babu outlined key infrastructure initiatives, including Elevated Corridors, Metro Rail Phase-II, Bharat Future City, Musi Riverfront Beautification, and the Regional Ring Road. These, he said, will reshape the state’s economy and urban form.

He added that zonal planning for Bharat Future City would be completed by December. Moreover, the government will break ground on a 200-acre AI City within the next two to three months.

“The government will continue to support real estate and construction, which are essential pillars of Telangana’s growth,” Sridhar Babu said.

Several NAREDCO Telangana leaders attended the event, including Vijayasai Make, Kali Prasad Damerla, Dr. Lion Kiran, K. Sridhar Reddy, and R. Venkateshwara Rao.