The Telangana state govt. has gone ahead and implemented the proposed increase in property registration charges from 1st February 2022 onwards despite real-estate industry associations & bodies appeals to postpone the increment in property registration charges. The move which did not gain favours from builders, developers & developer associations in Telangana, was passed by the government and the new increased property registration charges came into effect on the first day of February. Builders, developers & real-estate bodies had warned the state govt. against the move as it would lead to a steep increase in property prices.
As the real-estate industry associations predicted, property market rates have shot up after the Telangana state govt. announced the implementation of the increased property registration charges. Since the announcement, market property prices have increased by as much as 25-50% depending on the nature of the property. High-value land parcels had the highest jump in market prices post the announcement whereas the increment in prices for apartments & open-plots were lower. Market property prices have shot up in areas of Hyderabad where there is rapid development & high demand for land.
According to official govt. data, land value in Kokapet’s residential localities is now around ₹14,400 per sq. yd., which was around ₹10,000 per sq. yd. before the property registration charges were revised by the state govt. Kokapet has become one of the hottest real-estate destinations of Hyderabad with many builders & developers already building big high-profile projects with multiple high-rises. Even Puppalaguda, which is home to numerous upcoming multiple tower high-rise projects, has witnessed a vertical increase in market property prices – the revised market value for land in Puppalaguda has been fixed at ₹21,000 per sq. yd. which is a 50% increase compared to land price in Puppalaguda before the revision.
The market prices in other already prominent & popular real-estate destinations have increased even further say industry experts, the market value of property in the commercial localities of Kondapur-Gachibowli corridor is now revised to around ₹26,000 per sq. yd. compared to its market price of ₹14,000 per sq. yd. before the state govt. hike in property registration charges. Even fringe areas of Hyderabad with fast growth like Shankarpally have had market prices increase by about 40% from ₹2,000 per sq. yd. to ₹2,800 per sq. yd. after the state govt.’s announcement.
The state govt. of Telangana is expected to earn a further ₹3,000 to ₹4,000 crores in revenue as the new property registration charges came into effect. This means that the Telangana govt. is expecting a net revenue of ₹14,000 crores in 2022 from property registration charges & stamp duties alone – ₹4,000 crores more than the previous estimate of ₹10,000 crores. The builders’ associations of Telangana are unhappy as the govt. had only increased the registration charges just 6 months ago in July 2021 and the stamp duty was increased to 7.5% from 6% recently.