It’s unclear who is advising the Chief Minister of Telangana, but construction experts say he is being led down the wrong path. This is because, when the Congress party came to power last December, he canceled the Airport Metro project, shut down the Pharma City, and, after assuming the market would stabilize post-Parliament elections, he introduced Hydra into the scene, creating chaos. Before the city’s real estate market could stabilise, the government decided to increase land and flat market values. Experts suggest that instead of raising market values under already unfavourable conditions, decisions should be taken to create a positive environment in the real estate sector. While there is no opposition to increasing land market values, experts believe it would be better to do so once the market has stabilised.
The stage is set for an increase in property market values in Telangana. The state government, under Chief Minister Revanth Reddy, has devised plans to raise property market values by 100% to 400% depending on the region. Revenue department officials are planning to implement these increased property values starting from April. It’s well known that there is a significant discrepancy between the open market prices and registration values of land in the state. For the past 10 months, the Revanth government has been studying the increase in land market values, and officials are already working on reports detailing fluctuations in market values. Several revision proposals have been prepared. The Chief Minister has instructed officials to increase land values annually in a scientific manner. In this context, after a gap of six years, the stage is now set to raise land values in Telangana. Property prices are expected to rise by 15-30% depending on the area, while land values may increase by one to four times.
100-400 per cent increase
It appears that the government is considering revising the current book values for agricultural land and properties, with an increase ranging from 100% to 400% depending on the region. Currently, the minimum registration value for one acre of land in Telangana is Rs 75,000. This could be revised to a minimum of ₹2 lakh per acre.
Additionally, the market values of land along national highways and other commercial areas are expected to be increased by 100% to 400%. Efforts are also underway to revise the values of residential plots and apartments in cities and towns. Currently, the registration book value for one square foot of apartment space in cities is around Rs 3,200 on average. The government is considering increasing this by up to 60%, which would bring the value to around Rs 5,120 per square foot.
Land values of residential plots…
In areas like Mokila and Maheshwaram, which have seen significant development on the outskirts of Hyderabad, the registration values for land and residential plots are still very low. In Mokila, the price per square yard is Rs 2,300, and in Maheshwaram, it’s only Rs 2,100. Hence, there is a possibility of a substantial increase in property registration values in such areas.
In places like Hyderabad, the price per square yard for residential plots in Kondapur and Gachibowli, based on the registration department’s values, is currently Rs 26,700. For commercial land, the price is Rs 44,900 per square yard. In Narsingi, the price is Rs 23,800 per square yard, in Manikonda it is Rs 23,900, in Raidurg it is Rs 44,900, and in Budwel it is Rs 10,200. Recently, in an HMDA auction, the price for an acre of land in Budwel reached around Rs 40 crore.
In Maheshwaram, the registration values are Rs 2,100 per square yard for residential land and Rs 10,200 per square yard for commercial land. However, the government is planning to increase the value in places like Maheshwaram by 300% to 400%. Authorities have mentioned that the market values of areas where the registration value is less than Rs 3,000 will be revised.
It appears that the Telangana government has decided to significantly increase the values of residential plots as well. Proposals are being considered to raise the registration value from ₹1,000 per square yard to Rs 3,000. For example, Serlingampally falls within the jurisdiction of two registration offices, where the current value of land is Rs 26,700 per square yard. The government is considering increasing this to Rs 50,000 to Rs 60,000 per square yard. In Mokila, the price per square yard is Rs 2,300, with a significant discrepancy between the market value and the registration department’s value. In such areas, proposals have been made to increase the current value by at least 400%. Recently, in an HMDA auction held in the area, the price per square yard reached Rs 50,000. In such locations, there is a possibility of raising the registration value to Rs 10,000 per square yard.
According to the 2023-24 figures, 35.1% (Rs 5,115 crore) of the total revenue generated by the Stamp and Registration Department comes from the registration of apartments, while 22.8% (Rs 3,322 crore) comes from the registration of plots. Home registrations contribute 19.5% (Rs 2,838 crore), agricultural land 11.4% (Rs 1,668 crore), and non-registered transactions contribute 11.3% (Rs 1,645 crore). The total revenue for the government amounted to Rs 14,588 crore. For the current financial year, an estimated revenue of Rs 15,000 crore is expected, with plans in place to generate an additional 40% revenue.
Officials are preparing plans to implement the revised property registration values starting from April 1. However, there are concerns that significantly raising registration values may destabilize the construction sector due to capital gains and other taxes. As a result, the government is proceeding cautiously with these changes.
