The Telangana government’s plans are in place to increase the market value of real estate in the state, ranging from 100% to 400% depending on the area. The Telangana government’s plans are in place to increase the market value of real estate in the state The Telangana government’s plans are in place to increase the market value of real estate in the stateRevenue Minister Ponguleti Srinivas Reddy stated that the process of increasing the market value of real estate has reached its final stages. The increased market values are expected to be implemented starting in April, as planned by the Revenue Department officials. At the same time, the Telangana government, which is implementing land reforms, is also preparing to raise the registration charges.
The market value of land in Telangana is set to rise significantly. The Telangana government has decided to revise the value of land and properties due to a large discrepancy between the open market and registration values. For the past eleven months, the Revanth Reddy-led government has been studying the increase in land market values. Officials, after reviewing various reports and analysing fluctuations in market values, have prepared several amendment proposals. Chief Minister Revanth Reddy has suggested that land values should be increased annually, following a scientific approach. As a result, after a gap of seven years, the stage is set for a rise in land values in Telangana. It is expected that flat prices could increase by 15-30% depending on the region, and land values could rise by one to four times.
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The government is now considering revising the current book values of agricultural land and plots, with the intention to increase them by 100% to 400% depending on the region. Currently, the registration value of one acre of land in Telangana is a minimum of Rs 75,000. This is expected to be revised to at least Rs 2 lakh per acre. Additionally, the market values of land along national highways and other commercial areas are likely to be increased by 100% to 400%. Efforts are also underway to revise the values of plots and flats in cities and towns. Currently, the registration department’s book value for an apartment’s square foot price in urban areas is, on average, Rs 3,200. The government plans to increase this by no more than 60%, which could raise the square foot price to Rs 5,120.
In areas on the outskirts of Hyderabad, such as Mokila and Maheshwaram, the registration values of land and plots are still very low despite significant development. In Mokila, the per square yard price is Rs 2,300, while in Maheshwaram, it is only Rs 2,100. As a result, there is a possibility of substantially increasing the registration values of real estate in such areas. In areas like Kondapur and Gachibowli, the registration department’s book value for residential land is currently Rs 26,700 per square yard. For commercial properties, the value is Rs 44,900 per square yard. In other locations, the values are as follows: Narsingi Rs 23,800, Manikonda Rs 23,900, Raidurg Rs 44,900, and Budwel Rs 10,200 per square yard. Recently, in the HMDA auction, land in Budwel fetched around Rs 40 crore per acre. In Maheshwaram, the book values are Rs 2,100 per square yard for residential land and Rs 10,200 for commercial property. However, the government plans to increase the value in areas like Maheshwaram by 300% to 400%. Officials say that the market values in areas where the current price is less than Rs 3,000 per square yard will be revised accordingly.
It appears that the Telangana government has decided to significantly increase the registration values for residential plots as well. There are proposals to increase the registration value of land from Rs 1,000 per square yard to Rs 3,000. For example, Serilingampally is under the jurisdiction of two registration offices, where the current land value is Rs 26,700 per square yard. The government plans to raise this value to Rs 50,000 to Rs 60,000 per square yard. In Mokila, the current value is Rs 2,300 per square yard, and there is a substantial difference between the actual market value and the registration department’s value. Proposals exist to increase the registration value by at least 400% in such areas. Recently, in the HMDA layout auction, the price per square yard reached Rs 50,000. In these areas, there is a possibility of raising the registration value to Rs 10,000 per square yard.
According to the 2023-24 figures, the total revenue generated by the Stamp and Registration Department from various sectors shows that 35.1% (Rs 5,115 crore) comes from the registration of flats in apartments, 22.8% (Rs 3,322 crore) from plots, 19.5% (Rs 2,838 crore) from house registrations, 11.4% (Rs 1,668 crore) from agricultural land, and 11.3% (Rs 1,645 crore) from non-registered transactions. In total, the government received Rs 14,588 crore in revenue. For the current financial year, it is estimated that the revenue will reach Rs 15,000 crore.
Following the increase in land and real estate market values, plans are being made to generate an additional 40% revenue. The officials are preparing to implement the revised registration values in the state starting in April. However, the government is taking cautious steps as a significant increase in registration values could potentially disrupt the construction sector due to higher capital gains taxes and other levies.
The Telangana government is ready to increase land and real estate registration charges in the state. As part of this initiative, the Revanth government is set to implement the Bhu Bharati system, replacing Dharani. Once Bhu Bharati is in place, the government has decided to increase registration charges. Officials have already begun working on the adjustments, and it is expected that registration charges could rise by 1% to 1.5%. With the increase in land and real estate market values, along with the hike in registration charges, it is anticipated that the Stamp and Registration Department will see a significant rise in revenue.
