The state’s recent land and property valuation update has sparked debate, yet industry experts highlight only a minor impact on the market while revenues see a significant increase.
Telangana’s latest revision of land and property values has stirred debate across the state, but Gummi Ram Reddy, the national president-elect of the Confederation of Real Estate Developers’ Associations of India, says the changes have not materially altered business conditions. Speaking to The Hans India, Ram Reddy said the new slabs have created only short-term resistance and argued that the impact on the market was modest, with the real estate slowdown amounting to about 5 per cent to 6 per cent when bank lending and apartment values are taken into account.
The revision, which took effect on June 5 across all 144 Sub-Registrar Offices, was designed to close the gap between official registration values and prevailing market prices. According to reporting by Times of India, the government grouped the increases into four bands, with most areas seeing rises of 25 per cent, 50 per cent or 75 per cent. Only a limited number of premium locations in Hyderabad, including stretches along the Outer Ring Road, highways, radial roads and neighbourhoods such as Kokapet and Raidurg, were pushed up by 100 per cent. Officials said about 10 per cent of areas were left unchanged. Revenue minister Ponguleti Srinivasa Reddy said the move followed a scientific study and consultations with economists, while the government has said it does not plan to raise registration charges.
Early signs point to a revenue lift even as transaction volumes ease. Deccan Chronicle reported that the Registration and Stamps Department collected about ₹2,600 crore after the revised values came into force, up from about ₹2,200 crore in the same period a year earlier, a rise of roughly 20 per cent. Property registrations, however, fell by about 35,000, from 2.9 lakh to 2.55 lakh. Rangareddy, Sangareddy and Medchal-Malkajgiri districts were among the biggest contributors to the higher collections. The department had already booked ₹3,110 crore in April and May after the valuation changes were announced.
Ram Reddy also used the interview to press for broader policy support for affordable housing. He said the central definition of an affordable home, fixed at below ₹45 lakh in 2017, no longer reflects today’s land and construction costs, and he called on the state to back low-cost housing through tax holidays, land partnerships with private developers and stronger assurances to banks for loans to lower-middle-class buyers. More broadly, he said the sector remains cyclical and is being shaped by wars, artificial intelligence and sentiment, with slower growth now most visible in Tier-3 and Tier-4 towns where affordability has weakened and migration has not picked up enough to support demand.
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