The Telangana government has decided to cap revision of land rates at 50% of the prevailing rates for non-agriculture properties registration such as open plots and 100% for agriculture properties.
The government had initially considered enhancing land value for property registration up to 200% as the last revision was in August 2013. Sources said there was no further revision for the past eight years because of a series of elections followed by the pandemic.
After the government hinted at a steep hike in land rates following approval by the cabinet sub-committee, realtors and developers reportedly expressed their concern this would have on property transactions. Some of them even met ministers and officials.
Sources in the registration and stamps (R&S) department said groundwork for revision of land rates has been completed and only needs the CM’s clearance, which is expected after July 10.
According to the proposals prepared by the R&S department, minimum value for open plots in Hyderabad Metropolitan Development Authority (HMDA) (outside GHMC) would be revised to Rs 3,000 per square sq yard from the existing Rs 2,000 per square yard. There would be 50% hike on existing rates if rates are between Rs 1,000 and Rs 10,000 and 40% for rates between Rs 10,000 and Rs 20,000 and 30% hike for properties that have current value of Rs 20,000 and above.
In GHMC jurisdiction too, the minimum value would be revised to Rs 3,000 from the existing Rs 2,000. Like HMDA, 50% hike in case of properties having present value between Rs 2,000 and Rs 10,000, 40% on land values between Rs 10,000 and Rs 20,000 and 30% on those above Rs 20,000.
As many developers have reportedly urged the government not to increase flat registration values, the department proposed only Rs 100 hike on minimum (basic rates) for flats (apartments). The rate will be Rs 1,800 in GHMC limits and Rs 1,700 in HMDA area outside GHMC. Twenty per cent hike has been proposed for the value of property (per sq feet) up to Rs 4,000 and 30% in case of properties valued above Rs 4,000 per sft.
Since the market rates of agriculture properties have witnessed multi-fold increase in the past seven years, the minimum value is Rs 5 lakh per acre from the exiting Rs 2.5 lakh value per acre in HMDA limits.
“After formation of Telangana, irrigation facilities have improved in all the districts and land rates also increased. There is a huge variation between the government rate and market rate,” a district registrar of the registration department said.
The state has proposed 100% hike in existing values of properties between Rs 2.5 lakh and Rs 10 lakh and 40% or Rs 20 lakh, whichever is higher, on values between Rs 10 lakh and Rs 1 crore and it will be 30% hike or Rs 1.40 crore whichever is higher for existing farm land over Rs 1 crore.