Hyderabad: Market value of lands in Telangana are set to be increased by the Telangana government for the first time, making property registrations costlier.
The hike is expected to be in the range of 30 to 50 per cent based on the locality. For example, it will be higher in urban areas.
The file has been sent to the Chief Minister's Office for approval. The revenue department wants to increase market value of land to meet budgetary targets of the stamps and registrations department. The government has set a target of over Rs 4,200 crore for department this year, an increase of over Rs 1,000 crore over last year.
The new rates are likely to come into force from July 1. The increase in land prices will hit buyers since housing costs will go up accordingly. It will result in a higher burden on consumers purchasing flats or independent houses as the land value and built-up area will be taken into consideration while registering properties.
Last year, the revenue department had posted enhanced market value of lands on its website and sought suggestions from stakeholders.
The hike was dropped at the last minute after representatives of realty sector urged Chief Minister K. Chandrasekhar Rao to put the proposal on hold at least for a year on the ground that the sector, which had been sluggish for five years due to global and local factors, had started gaining momentum only after Telangana State was formed in June 2014.
“Though land value hike will fetch more revenue to the state exchequer, it will hit affordable housing. People from middle and lower-middle classes will be affected. At a time when we are talking about affordable housing, the hike will prove detrimental in achieving this goal. We want the government to halt the hike at least for six months,” said Mr C. Shekar Reddy, former national chairman, CREDAI.
