Govt. is set to increase property taxes. Also the basic market value of properties also will be revised upwards. This is likely to result in large jump in overall registration costs.
The state government has given the revenue department a target of Rs 5,300 crore, which is 25 per cent more than the previous year’s revenue. Hence, the property prices are set for a 10-15 per cent hike. The government, which had increased the market values in 2010, is keen on repeating the same this year as it will be difficult to take up the exercise next year since elections would be fast approaching.
“At present, the average basic value is below 50 per cent of the actual market value; this gap will be reduced by 10 per cent,” an official said. The spurt in real estate activity in recent months has also added strength to the department’s plans to improve its revenues. In April alone, revenue from registration transactions increased by 25 per cent over the corresponding period last year.
The spurt has been seen in all urban areas, in particular the emerging areas of Cyberabad and Kakinada. Significantly, gated community projects, which were badly hit due to recession, showed signs of recovery with sub-registrar offices receiving many applications for development agreements for villas. “The values of apartments in RR district went up to Rs 4,000 per sq. ft and this increased our reven-ues,” a sub-registrar said.