Hyderabad, August 10: The revised market values of lands for registration which came into force on August 1 raised several doubts among prospective buyers of property. Due to confusion on the impact of the revision on overall property cost, many have decided to wait and watch. But real estate developers say it will have little impact on the overall price paid by the consumers, at least immediately.
The reason is that most of the buyers avail home loans and they quote a price higher than the market value fixed by registration officials to get the maximum loan amount. Thus, there will be little difference in the registration charges paid to the government. However, the decrease in stamp duty from 7 per cent to 5 per cent is being considered as a gain for buyers as that led to a drop in the overall registartion charges from 9.5 percent to 7.5 pc in Hyderabad.
For instance, the registration authorities have estimated the price of a 1,100 sft apartment near Hitec City as Rs 10 lakh and collected Rs 95,000 towards registration charges at 9.5 per cent prior to August 1. With new norms, the officials arrived at a market value of Rs 12,05,000 for a similar apartment in the same building and collected Rs 90,000 towards registration charges at 7.5 percent. “Many buyers avail home loans. As they want to get the maximum possible loan, they register the apartments at the purchase value which is more than the market value fixed by the officials. Thus, there will be no difference in the overall cost,” explained Nitin Bichala, president of the Andhra Pradesh Realtors’ Association.
On the other hand, the recent announcement on commencement of Hyderabad Metro Rail project and revival of IT industry are being considered as positive signs for real estate in the city. “There are a few cases where registration costs have gone up but the hike has been nominal. The overall scenario has improved in the past six months as enquiries and sales have gone up,” said P Prem Kumar, president of the Andhra Pradesh Real Estate Developers’ Association.
He, however, felt prices were likely to go up in future as the realtors have to shell out more money for registration of lands to take up new ventures. “There will, however, be no major difference in prices of apartments immediately,” he opined.
–Agencies