Telangana Government Plans Major Property Value Increases from April

In a move that could significantly alter the real estate landscape, the Telangana government has announced plans to revise the land and property values across the state. The decision comes after a marked discrepancy between the market values and the official book values maintained by the Registration Department. To address this, the government is set to implement a rationalization strategy that could see land values increase by as much as 400 per cent in certain areas, with adjustments slated to take effect from April 1.

The government’s decision aims to align the official property values with the current market trends, which have been subject to considerable fluctuations. According to reliable sources, the Registration Department has been working closely with officials to assess these market changes and prepare proposals for amendments. These proposals are expected to result in significant price hikes in both residential and commercial properties.

The land value reassessment will affect various areas differently, with the government preparing to raise property values by 100 to 400 per cent in some regions. This move is part of a broader effort to adjust the land and property registration values, which have not been revised in the last six years.

For residential properties, especially flats, the price per square foot could increase by up to 30 per cent in some areas, while plots may see a rise of up to four times their current value. Despite these increases, Chief Minister Revanth Reddy has instructed the Registration Department to ensure that the revisions are carried out in a scientific and calculated manner to avoid any negative impact on the real estate market.

The government is particularly cautious about the potential effects on the construction sector, which could face challenges due to capital gains taxes and other associated costs if property values are adjusted too drastically. To mitigate this risk, the CM has emphasized a balanced approach to the reassessment process.

In high-demand areas such as Hyderabad, Kondapur, and Gachibowli, the land values are set to see substantial increases. Currently, the Registration Department values land in these locations at Rs 26,700 per yard for residential areas, with commercial spaces valued at Rs 44,900 per yard. However, these values are expected to rise significantly, potentially reaching up to Rs 50,000 per yard in some cases.

Meanwhile, areas with lower book values, such as Maheshwaram and Budvel, are also poised for substantial increases. For instance, in Maheshwaram, the current value of a yard is Rs 2,100, but the government plans to increase this by 300 to 400 per cent. Similarly, agricultural land and plots are expected to see a rise of 100 to 200 per cent, particularly in regions where current values are below Rs 3,000 per yard.

The government's decision to increase land values is expected to have a significant impact on the revenue generated by the Registration Department. In the 2023-24 fiscal year, the department generated Rs 14,588 crore, with Rs 5,115 crore (35.1 per cent) coming from flat registrations and Rs 3,322 crore (22.8 per cent) from plots. Other categories, such as agricultural lands and non-registered transactions, contributed the remainder.

With the upcoming revisions, the government anticipates a 40 percent increase in revenue, bringing the total income for the Registration Department to an estimated Rs 15,000 crore for the current financial year. This increase in revenue is expected to play a crucial role in the state's economic growth.