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Constant Revision Of Market Values Further Hurting Real Estate
Posted by Pradeep Sadanapalli | August 10, 2008 | 415 views
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Loading ...Constant revision of market values will fill the Department of Registrations and Stamps’ coffers, but what about the realty sector? ponders M. Sai Gopal.
The already floundering real estate sector receives yet another setback. The Department of Registrations and Stamps has introduced revised market values in twin cities and other municipal corporations in the State from August 1, which promises to add to the woes of an already sluggish sector.
This time, depending on the ‘promise’ and ‘value’ of the areas, the department has introduced a hike of 8 to 20 per cent and in some cases even up to 30 per cent, in parts of twin cities. Officials point out that the revised market values will help the department to meet its yearly target of Rs. 5, 500 crore through registrations.
Already, the department officials maintain that inflation and the ever-increasing home loan interest rates have compelled them to project just a 2.25 per cent increase in sales this year. While registrations at Hyderabad are just about managing to hold steady, coastal districts like Visakhapatnam, Guntur and Vijayawada have witnessed decline in percentage of sales.
The present hike of market values will bring in an additional Rs.230 crore, which would help in making up for the revenue deficit of Rs.460 crore, the department officials informed. Since 2007, the department officials are reviewing the market values every six months and the next revision would be taken up in February 2009.
Since January last year, this is the fourth time that the department has revised the mark values of land falling under various municipal corporations. The officials from the department have also informed that there has been no change in the stamp duty of General Power of Attorney (GPA) and the existing registration fee of 9.5 per cent.
“We have not received any orders to revise stamp duty on GPA from the higher ups till now. The revision of market values is a twice in a year affair. Only in municipal areas the revision was taken up while other areas where left out from the revision,” informs Hyderabad District Registrar G.Q. Haqqani.
Members of the Builders’ Asociation point out that instead of going for a hike in the market values, the authorities could have gone for reduction of registration fee, which is presently at 9.5 per cent. “Authorities could have kept market values intact and reduced registration fee. This could have given much needed boost to the sector,” is the common refrain among them. Presently, the break-up of 9.5 per cent registration fee includes seven per cent towards stamp duty, two per cent towards transfer duty and 0.5 per cent towards registration fee in all the urban areas.
SOURCES:
Hindu
Topics: Property Matters, Govt Failures, Real Estate |
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