Property value and land registration charges rise in Andhra Pradesh

News Posted - 2010-04-10

The Andhra government has increased the market value of land and buildings across all municipalities, corporations and special grade municipalities by 10 to 20 per cent. Registration charges will correspondingly move up to to the higher property value. Registration charges stand at 9.5 per cent, including a stamp duty of 7 per cent of the market value, transfer duty of 2 per cent and registration fee of 0.5 per cent.

The market value of land in Hyderabad, Secunderabad and adjoining Ranga Reddy districts has been increased by 20 per cent, the highest in the state. Even so, the revised value falls well short of prevailing market rates. For example while land costs Rs. 14 crore an acre in Kokapet, Ranga Reddy district, the revised value is still only at Rs. 40 lakhs an acre. In other areas of the state the increase in value has been moderate while in Tirupati, the increase has been marginal.

The values are likely to be revised again in six months and in rural areas next year.

Builders in the state have urged the government to roll back the hike in land registration charges concerned about the impact of this move on consumer demand especially given the recent increase in home loan rates.

Source: Inrnews

Reduction in land stamp duty likely. But market value set to increase

The state government is under severe pressure to live up to its promise to the Centre on reducing stamp duty from 9.5% to 7% this fiscal, even as officials of the stamps & registration department are readying proposals for the mandatory enhancement of market values for land this month.

As per chief minister K Rosaiah’s commitment last year, he had promised to reduce the stamp duty to 5% in a phased manner by the end of 2012, in keeping with implementation of the mandatory reforms committed by the state in its memorandum of agreement with Union ministry of urban development for sanction of projects in municipalities and corporations under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

There are nearly Rs 12,524 crore worth JNNURM projects being implemented in the state.

With the stamps & registration department’s collections in 2009-10 totalling Rs 2,500 crore against a projection of Rs 3,200 crore, officials are readying plans to increase land values to match the ambitious target of Rs 3,600 crore keeping in mind the revenue loss it is likely to suffer in the wake of reduction in stamp duty by 2.5% in 2010-2011.

With the real estate prices dropping by more than 30% over the past three years in several of upmarket places across the state, stamps officials are eyeing district headquarters and tier II towns which have seen a spurt in land transactions.

All sub-registrar offices across the state have been asked to send in proposals on the permissible increase in values of land and properties in their jurisdictions at the earliest.

Source: TOI 2/4/10