Realtors welcome Rise in Land Registration Costs

Visakhapatnam: The Visakhapatnam branch of the Confederation of Real Estate Developers Association has welcomed the AP government’s decision to revise land market values in urban areas from February 1.

This move would align official valuations more closely with prevailing rates in fast-developing pockets, the confederation noted.

However, the realtors’ body cautioned the government that the proposed 10 to 15 per cent increase — the second such revision under the present government — could push up registration costs, dampen buyer sentiment, and add to financial pressure on small and medium builders.

Obviously, the state is seeking to augment its revenues through stamp duty and registrations.

President of the CREDAI’s Visakhapatnam chapter, E. Ashok Kumar, said the revision reflected an improving growth outlook and growing investor confidence in urban centers.

“This shows the government is aligning land rates with on-ground realities in fast-developing locations. It also signals a positive growth outlook across urban Andhra Pradesh,” he said.

Kumar said the timing of the revision was significant, as Visakhapatnam was witnessing renewed momentum.

“Investment inflows into Visakhapatnam are improving steadily. We are already seeing more leads and enquiries from buyers, especially in growth corridors and emerging residential zones,” he said.

While supporting the government’s revenue mobilisation efforts, CREDAI said higher market values could translate into a higher cost burden for consumers.

“The government expects higher stamp duty and registration collections. But any sharp rise in market value directly increases transaction costs,” Kumar said.

He noted that higher registration expenses could influence purchase decisions, particularly among first-time and middle-income homebuyers.

“Affordability remains the main concern for buyers. When market values rise, registration charges and stamp duty rise too,” he said.

Noted lawyer from Visakhapatnam, TVSK Kanakaraju, said the power of the government to increase the market values “indiscriminately at their whim and fancy is legally absurd.” Market value is a dynamic dependent on market forces. The fluctuations in the market dictate the determination of market value,” he stated.