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Hyderabad News.Alert! Land Registration Charge to be raised in Hyderabad and other hot locations

Hyderabad News. TOI 19.05.2016

(Excl Ventures News.)Property buyers will soon have to shell out more for property registration beginning August 1 this year. The state government is planning to revise the market value of land (government basic values) and the Registration and Stamps (R&S) department has begun the exercise to implement the decision.The preparatory work is expected to be completed in a month.

Officials said the department has issued a circular to sub-registrar offices to prepare draft market values and send the data to the head office. The government is planning to increase land rates by 10 per cent to 20 per cent depending on the location.

The revision is being proposed keeping in mind the signs of recovery being seen in the real estate sector in the state, especially in and around Hyderabad. The revenue department expects a jump in property registrations once new districts are created which are expected to be announced on June 2 on the occasion of the state formation day.
Already many areas such as Mancherial and Jagityal have been witnessing real estate growth for the past one year. The registration department which earned Rs 2,700 crore last year, is targeting a revenue of Rs 4,292 crore for 2016-17. Officials are hopeful of achieving their target by revising the market values and believe that the introduction of new districts will also help in increasing revenues.

“Generally about 60 per cent to 70 per cent of the revenue comes from Hyderabad and Ranga Reddy districts. Now, revenue from registrations in districts has also picked up,“ a senior official of the R&S department said.

The last time the government revised land market values was in 2013. Last year in 2015, R&S department proposed a revision of land rates and sent the proposals to the government.

But the state government did not approve the hike following the intervention of builders and realtors who urged the government to postpone the revision by one year as reality was just picking up after bifurcation of the state.

“It is not necessary that the land values will be hiked across the state. The sub-registrars will conduct a survey and suggest revision in areas where registrations are likely to be on the rise. In some places, the rates may be be slashed or remain same if there is no growth in realty or construction activity,“ another official of the R&S department said.

During the last revision, the land rates were revised between 20 per cent and 50 per cent on the existing va lue, while apartment (flats) rates were revised in the range of 20 per cent and 80 per cent. For instance, the market value in Jubilee Hills was been revised to Rs 45,000 per sq yard from Rs 40,000 per sq yard, and in Prashasan Nagar, Nandagiri Hills and MLA Colony, it was revised to Rs 31,000 per sq yard from Rs 25,000 per sq yard.

This time the government has asked officials not to exceed a 20 per cent hike on existing market values.The law provides for a revision every two years.


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