Is it Safe to Buy HMDA-approved Flats in Hyderabad?


During the pandemic, when property prices dropped in a few places in India, Hyderabad continued to be one of the markets that saw high growth in real estate. The price of the properties was up, and the number of sales was high. 

The reasons were mainly high-end infrastructure, including the upcoming metro and its close proximity to many notable locations. However, while buying a property in Hyderabad, one can hear about HMDA approval. 

There is a common question among many homebuyers and first-time real estate investors in Hyderabad- “is it safe to buy HMDA-approved flats in Hyderabad?”

In this blog, we will find an answer to this question. 

RERA approved vs HMDA approved:

Well, RERA is a factor. RERA, or Real Estate Regulatory Authority, is a body that supervises real estate developments and constructions all over India. A real estate project in India must be RERA approved to ensure authenticity and credibility. 

Now, what is this HMDA? 

HMDA, or Hyderabad Municipal Development Authority, is an agency that plans approves and authorises civil development and construction in the Hyderabad Metropolitan area. It works under RERA. To avoid the cost and hassles of RERA approval, sometimes, projects are approved by HMDA only.  

Are HMDA-approved homes Safe? 

Now, the obvious question comes. Are these HMDA-approved homes that are not RERA-approved safe? Let’s learn about it in detail. 

A wide range of standalone developments is emerging in the city, which are cheaper alternatives for standard properties. Many of them are not RERA-registered but HMDA-approved.

Although the buyers assure of the safety of the properties, it makes the buyers suspicious. Should they ignore RERA registration while going for cheaper flats? If they do so, will that cause difficulties in future?

According to the experts, RERA-approved projects are always safer as the RERA law provides a crucial safety net, especially when the developer cannot deliver within the given timeline or compromises the proposed quality. So, if your priority is safety, RERA-approved projects are ideal. 

Anyways, any project that covers an area of over 500 sq. mt. or includes more than eight apartments must be registered under the State RERA. Projects smaller than they can be sold and bought with only HMDA approval. 

Talking about a legal perspective, HMDA approvals are easier to receive. It can easily help you get the basic layout and building construction permissions. 

So, in the long run, if it is a small property of less than 500 sq. mt, you can opt for HMDA approval. But, for larger ones, never proceed without RERA registration. 

To Sum Up

HMDA-approved plots and homes are also safe. Anyways, if you buy these properties, make sure that they are aligned with provisions under the RERA act. After all, RERA is the superior organisation managing HMDA. 

Any more questions? Ask in the comments below. Planning to buy a home for you? Learn about the ideal size of an Indian home beforehand. 

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Realtor since 1980 in Kondapur and peripheral areas nearby having completed more than 100 ventures and given smiles to thousands of happy families.


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