Hyderabad: Model market rents dip, tenants relieved
The move is a big relief for tenants as the shops in model markets could now be leased out at cheaper rates.
Hyderabad: The municipal administration and urban development department amended GO 82 to bring down shop rents in model markets to 10 per cent from the current 15 per cent.
The amendment came as a big relief for tenants as the shops in model markets could now be leased out at cheaper rates.
The rates were fixed under the AP revision of market value guidelines rules 1998. According to the current provision, the tenant has to pay 15 per cent of market value annually for the structure and the land in model markets. This would not be 10 per cent of the annual market value and only on the built-up area.
According to GHMC officials, under a 100-day action plan in 2015, the civic house decided to construct 50 model markets out of 200. Forty of them are operational and another 54 were under various stages of construction.
Each market was constructed at a cost of Rs 20.33 crore with seven shops on the ground floor and eight shops on the first floor with parking and toilet facilities.
The model markets were valued much higher. When the average rent for a shop in the open market was Rs 10,000, the model market charged anything between Rs 25,000 and Rs 30,000.
GHMC constructed model markets at Beera-ppagadda, Gandhinagar, Premvathipet, Chand-anagar and Moosapet. The corporation finished the tenders for 64 shops and the process is on for 30 more. Eighteen shops were allotted to SC/STs and BCs with a minimal rent of 10 per cent.