Revision In Mkt Value Of Lands To Hit Realty Biz In AP

Expecting a lull in sales for a month or two and requested the authorities to reduce GST to ease the burden on the builders and prospective buyers -- Bayana Srinivasa Rao, State general secretary of Credai

Visakhapatnam: Upward revision of market value of lands across Andhra Pradesh with effect from February 1 has slowed booking of apartments under construction.

The increase of value by five to 20 per cent in various areas in all the districts as part of 'rationalisation' has dampened the spirit of real estate developers. It is said now there is no difference between the official and open market rates thereby giving no benefit to the buyers mainly from the business communities. Moreover, the registration charges and GST on the total transaction is being absorbed by the end-user increasing their financial commitment to own a flat in places like Visakhapatnam, Vijayawada, Rajamahendravaram, Nellore, Tirupati, Kakinada, Srikakulam and Kurnool.

The last revision was made in 2023 by the YSRCP Government. "We carried out a massive exercise as part of rationalisation by increasing market value in some areas and reducing it wherever it is required," Special Chief Secretary, Revenue Department RP Sisodia said.

Prices have been increased in 16,997 villages and 9,054 wards in urban areas. Reduction in value was made in 158 villages and 145 wards. On an average 10 to 20 per cent hike has been made in residential and commercial value of properties in the municipal corporation/ municipal and major nagar palika areas.

"There is a drastic fall in walkins for buying flats impacting the average bookings. This is mainly because for a person willing to buy a 1,000 sft flat in developed areas like MVP Colony, Pandurangapuram, Kirlampudi Layout, Seethammadhara and Lawson's Bay Colony in Visakhapatnam, one has to spend nearly Rs1 crore after the latest revision due to additional costs," Bayana Srinivasa Rao, State general secretary of Credai, told Bizz Buzz.

He said they are expecting a lull in sales for a month or two and requested the authorities to reduce GST to ease the burden on the builders and prospective buyers.

In all developed and upmarket areas in the State, there is upward revision up to 20 per cent. However, in some areas, there is reduction as part of 'rationalisation.' The Stamps and Registration Department, which put the revised rates in various areas online, said they witnessed heavy rush for registration due to fear of increase in property value, a few days before the GO was issued on revision on February 1. Server had to experience glitches frequently due to heavy transactions. On the penultimate day, Rs220 crore was remitted from registration in the exchequer, according to sources.

A realty agent appealed to the government to consider reduction in house building loans, GST rate on registration cost to help revive realty business, which is facing a slump due to several reasons for a long time.