Hyderabad:The state government has decided to revise the market value of land, residential and commercial buildings — the official government value used for property registrations — with the enhanced rates, which are likely to come into force from the first week of May.
The decision was taken at a meeting of the Cabinet sub-committee on revenue mobilisation held at the Secretariat on Friday. This marks the first revision of land market values since the Congress government assumed office in December 2023, while the previous revision was carried out during the BRS regime in 2021.
While the quantum of the hike is yet to be officially announced, it is learnt that the government has decided to slightly increase the market value of apartments while marginally reducing the value of commercial buildings.
Official sources indicated that the market value of agricultural land will be increased by two to three times, depending on location. In many cases, land currently valued at Rs 6 lakh per acre could rise to between Rs 12 lakh and Rs 18 lakh.
In the core urban fringe areas, where government values are significantly lower than open market rates — sometimes `20 lakh per acre in official records compared to Rs 10 crore to Rs 20 crore in the open market — the government is considering hikes of over 300 per cent to bridge the disparity.
Special focus is being placed on areas abutting the Outer Ring Road (ORR), where land values are also expected to rise by up to three times due to increasing demand driven by projects such as the Regional Ring Road (RRR) and the proposed Bharat Future City. Open plots and residential layouts in these regions are likely to see a two- to three-fold increase.
Apartment prices may see a modest revision, with rates expected to rise from around Rs 2,200 per sq ft to about Rs 2,800 per sq ft. Officials believe that although registration costs may increase, the move will reduce black money transactions and improve transparency.
In contrast, the government is considering a slight reduction in commercial property values in certain areas where current rates are higher than prevailing market prices. Values may be brought down from Rs 7,000 per sq ft to Rs 6,500 per sq. ft to encourage new companies and industries to invest in the state, thereby boosting employment opportunities.
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