Market values of properties in cities to be revised upward
No revision in Tirupati in view of fall in the real estate business
To go up in Vijayawada, Vizag, Guntur and other towns
HYDERABAD: Market values of properties such as lands and buildings in towns and cities in the State will be revised upward by 5 to 10 per cent from August 1 for registration purpose.
Such a revision is due in all urban areas, but the government is contemplating implementation of the hike only in select cities and towns following feedback that the real estate sector was going through a slump in some areas of the State.
The slump is reported even in Hyderabad for a variety of reasons, including the uncertainty over the Telangana statehood issue. The government earned a revenue of only Rs. 22.25 crore through registration of properties in the city and its neighbourhood in April-May 2008 as against the target of Rs. 33 crore.
However, a senior official said the Stamps & Registration Department, had decided to increase market values even in Hyderabad as construction activity was at its peak.
This will mean that those planning to purchase flats would have to cough up higher registration charges.
There will be no revision in Tirupati town in view of the fall in the real estate business there though it will be hiked in Visakhapatnam, Vijayawada, Guntur, Rajahmundry, Kakinada, Warangal and Kurnool. Market value of properties in rural areas will be raised in February 2009 in tune with the guidelines for revising them once in two years.
The officials are of the view that unless market values are revised according to the guidelines, the department will not be able to achieve the revenue target for this fiscal — Rs. 5,050 crore.
Last year, there was a shortfall of Rs. 1,000 crore in the target of Rs. 4,800 crore.