Telangana Revamps Property Registration Rates: A Revenue Boost in the Making
Telangana passes 30 in 50 % property registration fees increase in Hyderabad Core Urban Region and seeks to increase revenues and comply with market rates.
Hyderabad: The Telangana state led Revision of WP property registration values in Core Urban Region (CUR), Hyderabad after one year of standoff. The new rates which are likely to experience an increment by 30-50 percent are meant to reduce the gap between the official registration values and the existing market prices.
The Central Urban Region, which entails locations in the Outer Ring Road (ORR), makes almost 60 to 70 percent of the revenue of the stamp and registration department in the state. These authorities explained that even if the existing registration rates were updated recently in 2021, it is significantly lesser compared to the prevailing rates in the market in the major localities like Gachibowli, Kokapet, Nanakramguda and the Financial District. Such difference has not only caused revenue losses but also promoted under-reporting of transactions.
The revision, as estimated, is likely to bring in 2,000 to 2,500 crores more a year, into the state exchequer. Senior officials claimed that the increase was important to adjust the official rates with the real estate industry which was yet to take a positive turn in the city. The high demand caused by IT and financial services continues to drive demand to Hyderabad and house prices advanced rapidly in the past three years. One official said the revision will make a transparency in registrations which is long overdue.
This proposal had previously been opposed by the developers and the stakeholders in the industry who cautioned against the increase in registration values arguing that this may suppress the demands in the real estate sector. Constructors feared that clients could not afford to buy the houses because of the high prices. Nonetheless, government officials claimed that the growth trend and inflow of investment would compensate for the short-term decline of the city.
A notification of the changed values can be anticipated shortly, and it is also likely that implementation will take place within the near future. Analysts reckon that the transition will serviceably affect the number of transactions and shall ultimately stabilize the economy by minimizing the variance between the actual market rates and the official records.
Hyderabad being one of the most important real estate centers of the country has always seen high demand in the residential as well as commercial arena. The state government sees the revision as an essential move towards enhancing the flow of funds as well as modernizing with fast urban growth in the city.
