Land value to go more in Hyderabad

The state government will increase land value in the twin cities and surrounding areas by 5 to 10 per cent from February 1. This is meant for registration purposes. Sources said the government decided not to increase land value beyond 10 per cent because of the slump in the real estate market.

“Sub-registrars have been requesting authorities not to increase land values in twin cities and surroundings because of the 40 per cent decline in transactions,” a senior revenue official said.

However, in several up-market areas such as Jubilee Hills the land value would remain the same. “Rates in these areas are almost 80 per cent of the actual value in market,” the official said.

The government will also increase land value in Greater Visakhapatnam, Vijayawada, Rajahmundry, Kakinada, Warangal and Tirupati. There will be no increase in Guntur, since a revision was made in December 2007.

District level committees headed by joint collectors will finalise the rates and make recommendations on Tuesday. It is known that the committee has recommended that existing land values be retained in Jubilee Hills, Banjara Hills and Shamshabad besides Tandur and Vikarabad municipalities. In Sanjeev Reddy Nagar, it recommended a 25 per cent increase in value.

However, in Tarnaka, the committee suggested that land values be hiked from Rs 17,000-Rs 20,000 per square yard to Rs 35,000-Rs 45,000. The stamps and registration department officials turned down this recommendation.

The increase is likely to be around 10 per cent in Kukatpally and Madhapur. The cantonment area is also going to see another increase for the second year in succession.

Officials said the number of real estate transactions declined from 1.72 lakh to 1.03 lakh in Ranga Reddy district and 33,000 to 28,000 in Hyderabad, where the revenue also dipped from Rs 312 crore to Rs 299 crore.

The overall growth rate in the sector in this financial year is around 15 per cent as against 40 per cent in the previous year.