Hike in rates witnesses drastic fall in property registrations

Financial crisis forces State government to increase value of land, sites, buildings, and apartments.
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VIJAYAWADA: The sub-registrar’s office in Vijayawada is bearing the impact of enhanced property prices, which have gone up by 10 per cent. The revised rates came into force on August 1. 
On Tuesday, the total number of document registrations in the city was just 30, while on July 31, the number stood at 160. Officials said that it would take somewhere around a week to 10 days for the situation to normalise.  


Earlier, buyers used to pay 7.5 percent as stamp duty on the value of the property and now it has increased to 10 percent. The State is going through a financial crisis with a deficit budget, and to overcome it, the government increased the value of land, sites, buildings and apartments across the State. As the implementation of new rates kick started on Tuesday, registration of documents also got affected. Based on the category, the registration of a document starts from `100 and goes up to `5,000. Though registration fees have gone up, officials collected the amount based on the old tariff, as the offices didn’t display the changed rates.


Speaking to Express, sub-registrar at Vijayawada office, Yogendar said, “There is an impact on registrations after the hike in property value to 10 percent. On July 31, we received 160 registrations which is 20-30 percent more than any other regular day. After the 10 per cent hike came into force, the number came down to 30. It will take some time for people to get adjusted to the new rates.”


N Sai Kumar, a staff member at Vijayawada sub-registrar’s office said, “On the last day, there was a surge in registrations. We didn’t even have sufficient time for taking our lunch. But on Tuesday, which is usually a lean day compared to other days, only deposit registrations and some minor registrations took place. There will be a fall in registration for purchases, since the buyer has to get adjusted to the new rate.”

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