Market value hike a big blow to TS realty: Telangana Builders Federation

Hyderabad: The real estate sector feels that the recent implementation of revised market values of properties in Telangana from February 1,will hit hard the construction and realestate sectorbesides affecting the customers directly/indirectlyin the State.

The Telangana government has recently increased market values of agriculture lands, open plots and apartments by 50 per cent, 35 per cent and 25 per cent respectively. The revision came within six months of increasing property registration charges including stamp duty from six per cent to 7.5 per cent.

C Prabhakara Rao, president, Telangana Builders' Federation, said: "While taking the decision of revising the market value of properties, the stakeholders were not consulted.Demand for properties is already slowing down due to pandemic. The sales also did not pick up during the festive season, especially in the month of December and January.While there could be some scope of revision in market value, it should be done after justifiable and transparent process and in consultation with the industry and the citizens at large".

An across-the-board increase in market value by 25per cent to 50per cent is not justified and shall be deferred till a proper methodology is involved and followed to arrive at a more reasonable market value, Rao said.

"Having increased the stamp duty, market values, structure rates, betterment rates and NALA charges in the recent past, it is not appropriate to revisit market values at the present juncture. At present,increase in market values is resulting in the abnormal increase in registration charges, NALA charges, he added.

He further said that that the issue of pre-launch/UDS sales by some un-realistic builders who are not regular in the industry has created a lot of confusion and spoiled the image of the industry and unfortunately general public were made scapegoat by the fancy advertisements published in print, electronic and social media.

"TBF has urged the Telangana government to help the sectorduring these testing times and defer the revision of market values for some time. Since the formation of State of Telangana, the State government has been supportive to the real estate. The sector is carrying out its business without any fear or threats from anti-social elements due to good policing and law and order in the State," Rao said.

"Looking at the development activities, many from other States are preferring to settle down in the State and there is a good business for our realtors and construction industry as entire India is looking at investing in Telangana,"he further added.

Telangana Builders' Federation is the apex body of seven associations - Greater City Builders, East Zone Builders Association,Kukatpally Builders Association, Uppal Builders Association, Pragathi Nagar Builders Association, Greater West City Builders Association and South Zone Builders Association. Today more than 900 builders are part of thefederation.