HYDERABAD: The State government’s decision to revise the market value of properties, for the second time in six months, has dealt a major blow to the construction and real estate sectors, whose growth continues to remain sluggish due to the Covid-19 pandemic effect.
According to Telangana Builders Federation (TBF), the ongoing pandemic as well as the festival season, especially in December and January, during which people tend to postpone their decision to spend money on property, have considerably slowed down the real estate market. Addressing the media here on Thursday, the TBF members said that it is not the appropriate time to revise the market value of properties, especially when the stamp duty, market values, structure rates, betterment rates and NALA charges were increased on July 7, 2021.
The increase in market value is leading to abnormal increase in registration and NALA charges, they said. As per the revised value, which came into effect on February 1, the stamp duty with respect to conveyance deed went up by 37.5 per cent and that in turn resulted in 25 per cent increase in registration charges. The market value of agricultural lands and all other properties were increased by 30 to 100 per cent.
The NALA Tax was increased by 50 per cent in the GHMC limits and by 67 per cent in other areas recently.TBF president C Prabhakara Rao said: “While there could be some scope in revision of market value, it should be done after due justifiable and transparent process and in consultation with the industry and the citizens at large. Increasing the market value by 25 per cent to 50 per cent is not justified and should be deferred till a proper methodology is evolved,” he said.
Move affects realty sector across TS
As per the earlier revision, the stamp duty on transfer of property deeds was increased from 4% to 5.5% and registration charges from 6% to 7.5%. The builders decried the latest revision, contending that it is directly or indirectly affecting the realty sector across the State