Real estate developers turn to draw of lots to sell assets in Mancherial

The real estate sector in Mancherial and the erstwhile Adilabad district has been hit by a prolonged slump, with revenues dipping nearly 15 per cent in 2024 compared to previous years. Police have warned of strict action against developers duping the public and urged citizens not to fall prey to such unlawful offers.

Mancherial: Certain real estate developers in Mancherial district have lately been resorting to draw of lots to sell their assets, amid a prolonged slump in the sector.

The real estate sector in the erstwhile Adilabad district has been facing a downturn for the past two years.

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According to data from the Stamps and Registration department, the district recorded revenue of Rs 174 crore through registration of house sites, apartments, mortgage of assets, marriages, firms and other services between January 1 and December 12, 2024. This was lower than the Rs 205 crore earned in 2023 and Rs 213 crore in 2022, reflecting a dip of about 15 percent.

Sales of assets have declined sharply over the last two years, as reflected in the department’s revenue figures. Real estate developers are reeling under severe financial stress and are being forced to adopt various methods to dispose of their properties and overcome losses caused by the fall in sales.

In a new trend, a section of developers has begun luring customers by conducting illegal draws of lots. They are announcing such events on social media platforms, roping in influencers by paying hefty remuneration fees.

Flex posters are also being put up at junctions and crossroads in towns and mandal centres to publicise the cost of coupons and the dates of the lucky draws.

For instance, an asset worth Rs 10 lakh is being allotted to a customer through a draw of lots by selling coupons priced between Rs 5,000 and Rs 10,000 each. Winners of such draws are promised house sites or independent houses. Gullible customers are reportedly falling prey to these schemes and losing money after being attracted by the lure of lucky draws.

Meanwhile, the police have warned of action against developers for duping customers through such draws of lots. They cautioned the public not to fall prey to unlawful offers and said action would be initiated against erring real estate agents if complaints were lodged.