GO No. 45 is creating 20% shortage in Housing Supply. According to Mr. Sekhar reddy, President, confederation of Real Estate developers association of India, Hyderabad, there is a shortage in supply of residential houses because of GO. 45. According to this GO.45 any builder coming with residential project in any area of A.P. they need to keep 20% developed area as reserve to economically backward classes. Builders are not keen on taking up new projects unless the government revises this unfeasible clause. This has created an artificial Shortage in the market leading to a marginal price rise. If this situation continues for long, property rates will soon by up by 20% or more. There is a good demand created to under construction projects because of “T”- effect. Residential buyers now very interested to buy  (Rs. 100/- property @ Rs. 75/-)  highly appreciating properties, so that risk on investment is less. This is possible only with under construction projects.