Telangana to See Hike in Market Values for Land

Hyderabad: The stage is set for a revision of market values for agricultural and non-agricultural land, marking the first such exercise in over three years and first time in the current Congress regime. The revised values are expected to come into effect from July and are expected to earn the state over Rs 10,000 crore.

Revenue minister Ponguleti Srinivas Reddy, who received the proposals on Thursday, is said to have held discussions with senior revenue officials regarding the extent of the proposed hike. He reportedly informed officials that the proposals would be forwarded to the Chief Minister A. Revanth Reddy for final approval. Later in the day, Srinivas Reddy met the Chief Minister at his residence and submitted the detailed proposals, it was learnt.

Market value revision committees formed by the stamps and registration department have submitted their proposals to the state government, recommending area-wise hikes in land values, official sources said on Thursday.

The last revision was undertaken by the previous BRS regime in 2021 and 2022, when market values of agricultural lands were hiked by up to 150 per cent, and non-agricultural land, such as open plots, by up to 100 per cent when compared to the pre-Telangana formation levels of 2013.

The land values were revised in 2021, while the registration charges had remained unchanged until the BRS government increased the stamp duty from six to 7.5 per cent in July 2022.

Officials view the current revision as a much-needed revenue booster. With revenue from the stamps and registration department falling to Rs 14,307 crore in 2024–25, the new hike is expected to generate an additional Rs 10,000 crore and help meet the government's target of Rs 25,000 crore in the 2025–26 fiscal year.

The BRS government’s last revision came in July 2021, after a gap of seven years, with the lowest agricultural land value fixed at Rs 75,000 per acre. The current government believes this rate is far too low, stating that agricultural lands at that price are practically non-existent anywhere in the state. It now plans to more than double this base amount.

Previously, market values were raised by 50 per cent in the lower range, 40 per cent in the mid-range, and 30 per cent in the higher range.

Similarly, the lowest value for open plots, previously set at Rs 100 per sq. yard, was raised to Rs 200 per sq. yard during the 2021 revision. The present government aims to increase these values by an additional 20 to 40 per cent across all categories.

A marginal hike in stamp duty is also under consideration, officials said.

The Chief Minister had called for a fresh revision as early as May last year, during a review meeting at the Secretariat. However, the proposal was delayed due to a slowdown in real estate activity attributed to the 2024 general elections and a global economic downturn.

During the meeting, the Chief Minister reportedly pointed out that while land prices in Hyderabad and other parts of Telangana have surged significantly, the government's revenue from property registrations hasn’t kept pace. He emphasised the need to narrow the gap between actual market rates and government-prescribed values to improve transparency and bolster state revenue.