Registration Costs Set To Rise From May 28 in Telangana

Hyderabad: The state government has decided revise the market value of land with effect from May 28. The decision was taken at the Cabinet sub-committee meeting on revenue mobilisation, chaired by Deputy Chief Minister Mallu Bhatti Vikramarka here on Friday. The quantum of the hike will be decided at the Cabinet meeting scheduled for May 23.

Sources indicated that the government is considering revising the value of agricultural, non-agricultural and immovable properties by up to 50 per cent overall. The proposed revision would largely focus on land located along national highways, major roads, mandal headquarters and urban peripheral areas.

Stamps and registration department officials found a huge disparity between government market values and prevailing open market prices, particularly in areas within the Outer Ring Road (ORR) limits around Hyderabad. Based on local market conditions, the department is understood to have recommended a comprehensive revision of market values.

According to estimates under consideration, the minimum government market value of an acre of land, presently ranging from ₹1.75 lakh to ₹2.75 lakh in several areas, may be increased significantly. Within ORR limits, where the existing minimum government value is around ₹8.75 lakh per acre, it is proposed to increase it to at least ₹15 lakh.

Officials noted that open market land prices around Hyderabad have skyrocketed in recent years. In Vattinagulapally and surrounding localities, land prices are reportedly ranging between ₹70 crore and ₹80 crore per acre, while in some premium stretches they have touched `150 crore. The corresponding government market value in these areas remains only around ₹2 crore to ₹2.5 crore per acre. The government is now considering increasing the official value to nearly ₹4 crore in such regions.

The government is also planning a major revision in apartment registration values based on prevailing market prices. The market value for flats is likely to witness an increase of up to 75 per cent. In areas where the present government value is between ₹3,500 and ₹4,000 per square foot, it is proposed to enhance it to around `6,000 per square foot.

Authorities are also planning area-specific revisions across nearly 350 localities in the Hyderabad metropolitan region, considering the wide variation in land prices from one locality to another. For instance, in parts of Jubilee Hills, where the present government value is around ₹80,000 per square yard, it is proposed to increase it to ₹90,000 per square yard.

In commercial areas, officials are planning to adopt a more uniform revision pattern. Open market prices for flats currently range between ₹8,000 and ₹12,000 per square foot, while in some peripheral Hyderabad areas they are being sold at around ₹7,800 per square foot.

Keeping these trends in mind, the government is considering fixing the revised official value at around ₹6,600 per square foot. Areas having 100-foot roads and major connectivity corridors are likely to witness sharper increases in valuation based on prevailing market demand and open market trends.

The revision is expected to substantially improve the state’s revenue collections. The annual revenue of the stamps and registration department currently stands at around ₹15,000 crore. The government expects the revised rates to generate an additional annual revenue of nearly ₹1,500 crore.

Sources said the government is also considering conducting a review meeting six months after the implementation of the revised market values. The exercise is reportedly being initiated based on recommendations made by noted economist Arvind Subramanian.

This will be the first revision of land market values undertaken by the Congress government since it assumed office in December 2023. The previous BRS government had revised land values twice in July 2021 and February 2022. Before that, after the formation of Telangana in June 2014, the then BRS government had retained the land values unchanged for more than seven years, continuing the rates fixed during the undivided Andhra Pradesh regime in August 2013.