VIJAYAWADA: It was a jolt that was anticipated but not many were prepared for. The state government’s orders increasing the registration value of all immovable properties came into force Monday. The hike in registration value of lands, flats and other immovable properties is pegged at around 20-30 per cent, which meant proportionate increase in the registration fee.
Considering the increasing land prices due to the proposed capital area as well as in cities like Visakhapatnam, Kakinada and Tirupati, which have been declared Smart Cities, the government appears to have decided to cash in on the craze. As per norms, the stamps and registration department was scheduled to revise the registration value of the properties from August 1. It is customary for the government to indicate probable hike in charges but as it made no such attempt, property buyers were forced to call off or postpone deals.
“The market value of land is at least double the registration value. If the registration value increased by 20 per cent, its market value too increases by at least 10 per cent,” said Sai Krishna, a property broker in Vijayawada.
In Visakhapatnam, the registration value of lands has increased by up to 20 per cent in places like Madhurawada and Gajuwaka. District in-charge registrar P Saroja said land rates and prices of also structural properties were revised as per the orders. The structural rate for apartments has been increased from `810 to `860 per sft and hence, registration fee for a flat would go up by around 12 per cent across the district.
Realtors fear the hike in registration value of lands and apartments (structural rate) would affect the market. They complained that the current registration fee of 7.5 per cent of registration value was the highest in the country. “The realty sector has been in a bad shape across the state. The latest decision by the government will add to the financial woes of genuine buyers,” said G Tirupati Rao, state general secretary of Andhra Pradesh Real Estate Developers Association (APREDA).