Express press service
HYDERABAD: Buying property will be an expensive affair in Telangana in the future. The state government has revised the registration value (market value) of properties upwards effective February 1. The increase would be around 50% for agricultural land, 35% for plots and 25% for apartments. With regard to high value properties (over Rs 40,000 per square meter), the increase is kept at a moderate level, even going up to 10%.
“The idea is not to overwhelm those who shell out huge sums of money to buy valuable goods. If the market value is also increased for these properties, it would be a double whammy for them,” said a senior government official.
However, the stamp duty was maintained at 7.5% of the market value of the property purchased.
According to reliable sources, a diligent effort has been made to narrow the gap between the free market value of a property and the market value set by the government so that the new charge is not too high and at the same time time, the market value set by the government would not remain ridiculously low. The government is likely to issue a GO notifying the improvement soon.
The state government expects to double revenue from property registration. At present value, the government receives 550 crore per month and after revision it would rise to 1,100 per month, if the economy remains buoyant. Even in the event of a downturn in the economy, the state would still mop up an additional 350 crore per month.
The Stamp and Registration Service got the green signal from the government to revise registration values about 20 days ago. The committee that was constituted to recommend the review looked at several aspects like how the price movement has been in different localities and regions since the formation of the state. According to sources, the only guiding principle was to reduce the difference between the free market value and the market value set by the government to a reasonable extent. After hectic consultations, officials had divided the properties into three categories to complete the hike.