People who are planning to purchase flats or land in Telangana state need to shell out higher amounts for the registration from now on.
The Telangana government last week hiked the stamp duty and market value of lands in the state. Market rates for agricultural lands, apartments and open plots have increased, and the stamp duty rate is hiked from 6% to 7.5% for sale and other transactions. This is the first time the rates are being hiked since the formation of the state in 2014.
The major effect of these changes will be on the buyer as now they need to pay higher registration fees. The increase in land rates will also lead to a hike in plots & flats prices.
With this change in the real estate ecosystem, the buyer will have to spend more from their pocket, while the sellers are on the safer side, and the government will be benefited.
As per the orders from the government on the revised stamp duty and market value of lands, the minimum value for agricultural lands is fixed at Rs 75,000 per acre. For agricultural lands, the existing values are increased by 50% in the lower range, 40% in the mid-range and 30% in the higher price range of agricultural lands.
The current lowest value for flats/apartments was Rs 800/- per square feet, which has been now amended to Rs 1000/- per square feet. For flats/apartments, the hike is by 20% in lower ranges and 30% in the higher price ranges.
For open plots, previously the lowest value was Rs 100 per square yard that is now revised to Rs 200 per square yard. The basic values for open plots have been amended by 50% in the lower range, 40% in the mid-range and 30% in the higher price range of open plots.
Stamp duty rates have now been revised to 7.5 % from the earlier 6 %. The state government claimed that the state duty rates in Telangana are among the lowest in the country, whereas in the neighbouring states, the duty rates are much higher – TN (11%), Kerala (10%), Andhra Pradesh (7.5%).
The decision was taken by the Cabinet Sub Committee, after thorough discussions and careful study of the matter.
Many people in the realty sector welcomed the State government’s forthcoming measure for hiking the registration fees and land values. However, the Vice-president of CREDAI G Ram Reddy suggested the government for decreasing stamp duty so the buyers wouldn’t feel the pinch and at the same time, the government would also generate revenues. Additionally Reddy suggested that upward revision must be carried out in phases rather than a single go.
According to the experts, the decision of the state government for hiking house and land rates will be a bad-news for the middle-class and their dream house plans and this can also minimize the revenue collection done through the stamp duty.