Will Telangana's already faltering real estate market be further impacted by the State government's proposed revision to market values?
 
Developers and builders are concerned about the move, which came up during a recent review meeting led by chief minister A revanth reddy to increase income. They worry that the modification of market values at this specific moment might cause business, which has been struggling since the announcement of the elections late last year, to slow down much more. Builders feel that because of all these variables, the State government's policies are still unclear on several matters, thus it might not be the proper moment to start such activities.

The chief minister gave them instructions to start taking steps to update the market value of lands during a meeting on thursday with representatives from the Stamps and Registration Department and other agencies. He said that although the value of land and other real estate had skyrocketed throughout the state, the revenue from stamps and registrations had not kept pace. He had stated that there was a discrepancy between the land's or properties' market value and the actual sale price and that the market value needed to be adjusted to support the real estate industry and increase the State government's revenue.
 
A CREDAI hyderabad member acknowledged that there was a clause requiring annual revisions to the market values, but said that the time was not suitable to make those revisions. According to him, the market has been extremely sluggish over the past six months, and these developments can make things even slower. There would be price uncertainty, so customers would have to wait and observe. After the State administration took office six months ago, he said, it was time to bolster investor confidence and adopt actions that would lead to a Statewide real estate boom.
After seven years in office, the BRS administration changed the registration fees in July 2021 from 6% to 7.5 %. Market values were updated in february 2022, but a builder claimed that since land values are rising, this had little effect on sales.
 
Developers also note that deals have already been negatively impacted by the current congress government's stated plan to shelve the Pharma City project, which may affect local real estate. customers expressed concern about the government's suggested additional locations and the length of time it could take for them to be created. The real estate industry, he claimed, was also being directly impacted by discussions about district restructuring and the government's unclear policies.
 
The government could look into ways to lower registration fees by one or two percent if it was serious about raising market value. He continued by saying that this would support a rise in sales and transactions, guarantee cash flow in the market, and stabilize the state economy.


 
 

 
 
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19/05/2024 10:00 AM