The Telangana Registration and Stamps (R&S) department has decided to formulate guidelines for revising market values of properties, a day after the cabinet sub-committee on resource mobilisation directed the department to reassess land rates for registrations.
Scope of Revision Under Consideration
According to sources, the state government has not yet finalised whether the revision will apply across the entire state or be limited to the jurisdictions of the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MCMC).
Given the significant disparity between current government-fixed land values and actual market rates, the government is considering increasing land values by 30% to 50% in certain localities. Official sources indicated that the R&S department, which generated revenue of Rs 15,200 crore in the 2025-26 fiscal year, could earn an additional Rs 2,000 crore if the land rates are revised.
Disparities in Key Areas
In the realty hotspot of Kokapet, developers are selling flats at Rs 12,000 per square foot, while the government registration value stands at just Rs 3,000 per square foot. Similar gaps exist in Gachibowli and Madhapur, where government land values for registration range between Rs 3,000 and Rs 4,500 per square foot, far below market rates. In Bachupally, the government registration value for flats is Rs 2,000 per square foot, whereas builders charge up to Rs 7,000-8,000 per square foot. In Mokila, the government rate for apartment registration is also Rs 2,000 per square foot.
For open plot registrations, the prevailing market rate in Kokapet and the Financial District is a minimum of Rs 1 lakh to Rs 2 lakh per square yard, while the government rate is Rs 13,500 for residential areas and Rs 23,800 per square yard for commercial properties. In Bachupally, the registration value for residential properties is Rs 12,600, compared to market rates of Rs 70,000 to Rs 80,000, depending on the locality.
Potential Reductions in Core Areas
In some areas like Ghatkesar and Rampally, the government market value for flat registration is Rs 2,000, where the hike may be minimal. Conversely, the government might reduce rates in certain core city areas such as Srinagar Colony, Chirag Ali Lane, and Abids, where registration values are currently much higher than in hotspots like Gachibowli and Madhapur.
Background and Previous Attempts
The government has been considering revising market values for the past year, as the last revision was carried out in January 2022. The R&S department conducted some groundwork last year to enhance property registration values, but the proposal was put on hold after realtors and developers expressed concerns that the move could further impact the real estate market.
The upcoming revision aims to bridge the gap between government values and market realities, potentially boosting state revenues while addressing long-standing discrepancies in property registration.
