HYDERABAD: As several factors are adversely affecting the prices of real estate and market sentiment, the real estate developers associations have appealed to the Telangana government to defer the revision of market values of properties.
According to CREDAI and TREDA, more than three lakh properties have recently been released from the prohibitory list and many more are yet to be cleared. Similarly, many such properties are yet to be released by the computer-aided administration of registration department (CARD) system and lakhs of transactions are pending on this account, the two associations said.
According to the real estate developers, the industry and the State government are yet to work out a mechanism to control the menace of pre-sales, undivided share (UDS) and 100 per cent payment sales, which are badly affecting the market sentiment and the prices of real estate.
Menace of pre-sales
The industry and the State government are yet to work out a mechanism to control the menace of pre-sales, undivided share (UDS) and 100 per cent payment sales
Don’t revise market values until a proper study is done: Realtors
The CREDAI and TREDA members pointed out that the rates of building materials, including cement and steel, have gone up significantly and it is just seven months since the market values of properties were increased by 30 per cent to more than 100 per cent.
“Since the last revision, the government has increased the stamp duty by 37.5 per cent, NALA charges by 50 per cent to 67 per cent and the local bodies/gram panchayat charges on development permits way beyond the government prescribed rates,” the developers said. Both CREDAI and TREDA requested the government to defer the revision of market values until a proper study is conducted on the impact of the recent increases in duties, fees, rates, costs, charges, changes in economy in general and the real estate market in particular, and the likely burden of the Union Budget 2022 on the affordability of real estate in Telangana.
“The beneficial process of involving all stakeholders, including representatives of real estate developers associations, in the market value revision process and notifying the citizens with draft revision proposals could not be taken up. We earnestly request the government to revert the stamp duty, nala conversion charges and local body charges to the previous levels,” they added.