Property rates to rise and what it means for you
The registration and stamps (R&S) department of Telangana is considering increasing the land rates between 20% and 200% over the current registration rates. It is believed that the proposal is due approval from Telangana chief minister K Chandrasekhar Rao and a hike is expected to come into effect from August 1. The land values too are expected to rise. Non-agriculture properties are believed to see a hike between 30% and 50%, 30% in the rural areas and 50% in Greater Hyderabad.
Why the hike?
Pertaining to registration rates, for non-commercial areas and residential colonies, the expected hike is 100%, 200% on commercial roads and between 20% and 50% in rural and municipal towns. In Greater Hyderabad and HMDA limits, the expected hike could be 100% and 200%.
The reason for this proposal is said to have a discrepancy in the government's registration value and the actual(current) market value of the land. For Instance, in areas like Madhapur & Khanamet the maximum government land registration values were Rs 30,000 per sq yard for commercial land and Rs 20,000 per sq yd in residential colonies. But, the actual market rate of the lands here is way higher, around Rs 1 lakh per sq yard in residential colonies and over Rs 2 lakh for commercial areas. In Jubilee Hills, the government registration rates were between Rs 50,000 and Rs 60,000 per sq yard while the lands were being sold at Rs 2 lakh per sq yard.
Nizampet is an area that has great connectivity, especially to Hi-Tec City. In this area, the rate is just Rs 10,000. In Dundigal the government registration rate is Rs 2,000 while the real land cosy is nearly Rs 20,000 per sq yd. In eastern Hyderabad, the government's land registration rate is between Rs 9,000 and Rs 10,000, while HMDA had sold its plots for Rs 30,000 - Rs 40,000 per sq yard. The Metro has brought a huge surge in land prices. Lands near Uppal Crossroad are being sold for Rs 70,000 and it is Rs 1 lakh while the government land rate is just Rs 9,000. Hence the need for revised land registration rates seem to be important now more than ever.
Is this the time to invest?
The smartest way to build wealth is done by investing at the right time and yes, this is the right time to invest. The land prices are supposed to see a hike which means the properties/apartments/flat prices increase too. It is an ideal time for buyers as the values of the properties are increased, which means they could apply for a bigger loan from the bank. There is no fear of resale value as Hyderabad will always have a growing demand with exponential prices.
Where to invest?
Areas like Nizampet, Kukatpally and Hitech city are saturated. New areas of development are sprouting in and around Hyderabad and one such area is Bandlaguda Jagir. The area is well connected to the city and is attracting premium housings. If it's been your dream to invest in a property, now is the time. Head to Vaishnavi Infracon's Oasis and get yourself a luxury 3BHK. Contact us to book a site visit.