At this stage it would adversely affect the realty sector in Telangana
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Hyderabad: The realty sector in Telangana would have been affected adversely if the registration rates were hiked for lands and flats. The TS government is learnt to have taken a decision to keep the revision on hold for one more year after the real estate sector brought to the notice of CM K. Chandrasekhar Rao that any hike at this stage would adversely affect the realty sector in Telangana, especially in the surrounding districts of Hyderabad where there is a huge demand for lands and apartments.
The stamps and registrations department had proposed enhancing market values by up to 30 per cent last month and posted the revised rates on its website, seeking public feedback till July 15. The new rates were supposed to come into effect from August 1. If implemented, they would have resulted in a steep increase in registration charges, burdening property buyers from middle and lower income groups. An official announcement in this regard is expected within a week.
The finance department had also opposed a revision of market rates in the realty sector at this stage on the ground that revenues through Stamps and Registrations would be hit due to decreased transactions, which have been witnessing a steep increase due to increased property transactions over the last six months. Finance minister Etela Rajender had stated that hiking land values at this stage might boomerang.
“The timing of revising market values is totally wrong because after several years of slowdown due to political developments over bifurcation, the real estate sector has just started gaining momentum. We brought this to the notice of the CM and requested him to continue with the existing rates for one more year as a stimulus package for the realty sector in Telangana. He responded positively on this,” said former Credai chairman C. Shekar Reddy.
He said the CM was very particular about giving a boost to the realty sector and a market value revision would not help in achieving this. This year, the hike proposals were drafted much in advance and were posted on the website area-wise for public feedback. However, no major objections were received from the public as the government has not provided online facility for the same and had instead asked people to visit registration offices personally to submit written complaints, which caused them severe inconveniences.
( Source : deccan chronicle )
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