HYDERABAD: Buying property will be an expensive affair in Telangana, going forward. The State government has revised upwards the registration value (market value) of properties with effect from February 1. The hike would be about 50 per cent for agricultural lands, 35 per cent for plots and 25 per cent for apartments. In respect of high-value properties (more than Rs 40,000 per sq yard), the hike is kept at a moderate level, even going as low as 10 per cent.
“The idea is not to burden those who shell out huge chunks of money to buy valuable property. If the market value is also hiked for such properties, it would be a double whammy for them,” a senior government official said.
The stamp duty has, however, been retained at 7.5 per cent of the market value of the property purchased.
According to reliable sources, a diligent effort has been made to narrow down the gap between the open market value of a property and the market value as fixed by the government in such a way that the new burden would not be too high and at the same time, the government fixed market value would not remain ridiculously low. The government is likely to issue a GO notifying the enhancement soon.
The State government expects to double the revenue from registration of properties. At the present value, the government is getting `550 crore per month and after revision, it would go up to `1,100 per month, if the economy remains buoyant. Even if there is any sluggishness in the economy, the State would still mop up an additional `350 crore per month.
The Stamps and Registration Department has obtained the green signal from the government to revise registration values about 20 days ago. The committee that was constituted to recommend revision has gone into several aspects like how the price movement has been in different localities and areas since the formation of the State. According to sources, the only guiding principle was to narrow down the difference between the open market value and the government fixed market value to a reasonable extent. After hectic consultations, the officials had divided the properties broadly into three categories for effecting the hike.