Illegal Building Crackdown: What It Means for Buyers in Hyderabad

What happened?

Siasat reported on 20 October 2026 that more than 1,500 illegal buildings have been identified across the three municipal corporations of Hyderabad. The paper said this matches the count GHMC alone usually flags over a full year. Cyberabad Municipal Corporation has so far pulled down 500 structures, while GHMC and Malkajgiri Municipal Corporation have between them flagged 1000 unauthorised constructions.

According to Siasat, the action follows the collapse of two buildings still under construction at Anjaiah Nagar in Gachibowli, which killed two people, and a multi-storey building that tilted in Gopanpally. Officials said the drive mostly targets structures of five to seven floors built on very small plots of 50 to 75 square yards, which endanger the buildings next door.

Siasat, citing The Times of India, said Malkajgiri Municipal Corporation has demolished over 100 buildings that were still being built, with a focus on those at the centring stage. Its commissioner, T Vinay Krishna Reddy, was quoted as saying notices are going out regularly and demolitions follow within two weeks of a notice. Officials have been told to keep watching these areas so that demolished structures do not come back.

Which sectors are affected?

• Hyderabad
• Greater Hyderabad Municipal Corporation (GHMC)
• Cyberabad Municipal Corporation
• Malkajgiri Municipal Corporation
• Gachibowli
• Gopanpally
• Small-plot, multi-floor builder construction

Potential impact

The clearest effect is on risk, not on prices. A flat in a building that lacks permission, or that exceeds the sanctioned floors, now carries a real chance of a notice followed by demolition on a short timeline. Buyers can be expected to ask harder questions, and unapproved stock may sell at a steep discount or not sell at all. Hyderabad's average of ₹9,800 per sq ft in our data reflects approved supply, so it should not be read as a fair price for a questionable building.

What happens next is uncertain. The reports describe a drive that officials say will continue, but enforcement of this intensity often fades with time, and the story does not say how many flagged buildings will actually be pulled down. Approved projects by established developers are unlikely to see direct price effects. Small-plot, high-floor buildings in the affected pockets may see weaker demand and slower resale until the position of each building is clear.