They say the move could deal a big blow to already depressed real estate.
Updated – May 18, 2024, 11:09 p.m.
hyderabad: Will the state government's proposed mark-to-market move hurt Telangana's already depressed real estate sector?
Builders and developers are concerned about the move, which came into the news after Chief Minister Revanth Reddy's recent review meeting aimed at boosting revenue. They fear that a correction in market value at this particular point in time could further slow down business, which has been sluggish since the election announcement late last year. Builders feel that the state government's policies on various issues are still unclear and said considering all these factors, it may not be the right time to start such an exercise. ing.
The Prime Minister held talks with officials of the Stamps and Registration Department on Thursday and instructed them to initiate measures to revise the market value of land. He said that while the value of land and real estate across the state had increased significantly, revenue from stamps and registrations had not increased accordingly. He said there was a discrepancy between the market price of land and real estate and the actual sale price, suggesting that market prices need to be revised to promote the real estate sector and increase revenue for the state government.
While acknowledging that there was a provision to revise market prices every year, members of CREDAI Hyderabad expressed the view that now is not the right time to revise prices. The market has been very slow over the past six months, and the announcement could slow it down further, he said. Consumers will be forced to wait and see, given the uncertainty surrounding pricing. He suggested that the state government has been in power for six months and now is the time to take steps that could boost investor confidence and trigger a real estate boom in the state.
After seven years in power, the BRS government revised the registration fee from 6% to 7.5% in July 2021. The market price was revised in February 2022, but the builder said there was no impact on transactions considering the rise in land prices.
Developers also point out that the current parliamentary government's decision to halt the Pharma City project, which could impact real estate in the area, has reportedly already had a negative impact on trading. Consumers were concerned about new locations proposed by the government and the time it would take to develop them. Redistricting talks and uncertainty in government policy also have a direct impact on the real estate sector, he said.
If the government is keen to increase market value, it should consider the possibility of lowering registration fees by 1-2 percentage points. This will help increase trade and sales volumes, ensure cash flow in the market and stabilize the state's economy, he added.
