Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) witnessed a significant dip in its revenue this financial year (2024-25), due to a drop in the number of applications for construction permits within the city limits.
The decreased number of applications for multi-storeyed building permits in the financial year 2024-25 has amounted to a revenue dip of Rs 300 crore. Fees levied on construction permits have been a major source of revenue for the town planning department of the municipal body in the past years.
In the financial year 2023-24, the GHMC generated revenue of Rs 1107.29 crore, with the period between April 1 to October 20, 2023, generating a revenue of 750 crore via building permits.
In the current financial year, the revenue generated in the same period is just Rs 450 crores, showing a dip of Rs 300 crores and signifying a slowdown in the construction field in the city.
Downward trend in Hyderabad’s construction sector
The city of Hyderabad is seeing a decrease in the revenue from construction permits for the second continuous year. While the revenue generated from permits peaked in the financial year 2022-23 in recent years, it has shown a downward trend in the years since.
The financial year 2022-23 generated 1454 crores, a jump from the previous year’s revenue of Rs 1,144 crore. But in the financial year 2023-24, it had reduced to 1107.29 crore. This year, it shows a continuation of this trend.
The city, which had seen a construction boom in the post-COVID years, but is currently witnessing a slowdown.
Meanwhile, Hyderabad had recently featured in the list of top cities in the world, for rapid development, garnering the fifth spot.
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